Who is eligible for chapter 7 bankruptcy in Wyoming?

Individuals with unstable incomes and a large amount of unsecured debts are eligible for chapter 7 bankruptcy in Wyoming. This means that people with little to no income may be eligible. However, chapter 7 bankruptcy in Wyoming requires individuals to complete a means test. The test is a formula which ensures that they are can file a chapter 7 bankruptcy petition. Individuals must take their monthly income--after all debts are paid--and subtract it for Wyoming’s median income according to household size. If there is no disposable income left after the deduction, then the individuals are eligible for chapter 7 bankruptcy. However, if there is disposable income, then they are eligible for chapter 13 bankruptcy. Chapter 13 requires people to actually repay creditors over a three to five year period.

Once eligible, people must complete a pre-bankruptcy counseling session which cost approximately $50. The session must be completed within 180 days before filing bankruptcy.

Chapter 7 bankruptcy in Wyoming is the legal process to eliminate unsecured debts such as credit card bills, personal loans and medical bills. However, the bankruptcy chapter wipes out unsecured debts such as alimony, child support, some taxes and student loans. Chapter 7 takes approximately four to six months to complete from the time the petition is filed to the time debts are discharged.

Individuals interested in Chapter 7 bankruptcy should contact a bankruptcy lawyer. The lawyer will explain the entire bankruptcy process and make sure that people are eligible to file chapter 7 bankruptcy in Wyoming.