Wyoming Chapter 13 Bankruptcy Attorney

Chapter 13 Bankruptcy Relief:

To be eligible for filing Chapter 7, your household income must be at or below the median income for Wyoming. This is called the “Means Test”. Most people considering bankruptcy meet the means test. However, even if your income is above the median, you can still file bankruptcy under Chapter 13. Filing a Chapter 13 bankruptcy offers all of the protections of a Chapter 7 including: stopping collections, suits or garnishments; prohibiting any more penalties or interest charges on credit cards and  requiring creditors to file proofs of their claims, which many do not, to your considerable advantage.

Also, Chapter 13 bankruptcy allows you to discharge certain debts that cannot be discharged in Chapter 7. It gives priority to child support or tax debt by allowing these to be paid in full before any payment is made to your other unsecured creditors and permits you to discharge your non-priority, unsecured debts by paying no more than what your disposable income allows, even as little as pennies on the dollar. In Chapter 13, you file a payment plan which must be confirmed by the Wyoming Bankruptcy Judge. The plan’s duration is between three to five years depending on your household income. You must make monthly payments to the trustee based on the amount of your disposable income. After your last payment, you will be discharged of your debt, even if you have paid less than the full amount owed. Child support and taxes will be paid in full over the life of the plan.

You must file under Chapter 13 if your household income is above the median income in Wyoming or if you filed a Chapter 7 bankruptcy within the last 8 years. Even if your income is below the median, you may choose to file under Chapter 13 if you want to cure defaults on your home mortgage and avoid foreclosure, if you owe past due tax debt or child support or if you have substantial equity in your residence but need relief from unsecured debts such as substantial credit card bills and large medical expenses.

Please feel free to contact Paul with your legal questions. Initial consultations are free.