What Are the Wyoming Bankruptcy Exemptions?

Why Wyoming Bankruptcy Exemptions Matter 

When you file Chapter 7 bankruptcy in Wyoming, the state’s bankruptcy exemptions will help you protect the things you own, including your car, household goods, and money benefits like a retirement account.

Most Chapter 7 filers don’t lose any of their property when they file their bankruptcy case. But you must use exemptions to protect your property or the trustee assigned to your case has the right to sell your property and use the proceeds to pay your creditors. This very rarely happens, but it’s important to know about.

Do You Have To Use Wyoming’s State Exemptions?

There are two sets of exemptions that come into play with Chapter 7: state exemptions and federal exemptions.

Some states allow their residents to choose between claiming state exemptions and federal exemptions, but Wyoming isn’t one of these states. While much of your case will be impacted by the federal Bankruptcy Code and federal law, this is one area where you’ll generally only need to pay attention to state law, with a few exceptions. In other words, don’t worry about the federal bankruptcy exemptions.

The only exception to this rule is if you’ve lived in Wyoming for less than two years. In this case, you’ll need to check the law to see which exemptions you can claim. Read Can I File For Bankruptcy After Moving To A New State? to learn more if this applies to you.

What Are the Wyoming Bankruptcy Exemptions?

The exemption values listed below apply to single individuals filing for bankruptcy. If you are married and filing jointly with your spouse, you can usually claim double these amounts.

This “doubling rule” means each spouse gets a full set of exemptions. However, if only one of you legally owns a particular asset, you must use the single filer exemption amount. The doubling rule only applies when both spouses jointly own the property or asset.

Real Property: The Wyoming Homestead Exemption

The notable exception to the doubling rule concerns real property. Married couples in Wyoming can’t double the value of the homestead exemption. All filers are entitled to exempt up to $20,000 of equity in their primary residence. 

Equity, in this context, refers to the portion of your home that you truly own. For example, if a bank loans you $350,000 to buy a house and you have paid back $40,000, your home equity is $40,000.

Wyoming’s homestead exemption isn’t particularly generous, which is partially why some homeowners opt to file for Chapter 13 bankruptcy if they’ve already heavily invested equity in their homestead.

Wyoming codes §§ 1-20-101, 1-20-102,1-20-104, 1-20-103.

Wyoming’s Personal Property Exemptions

Wyoming offers generous personal property exemptions, but calculating their values can be a bit tricky due to how they're structured. To simplify the process, make a list of all personal possessions owned by each family member, as well as general household items, before you begin.

When estimating values for most personal property, think in terms of garage sale pricing, which reflects the fair market value for used items. However, for items like motor vehicles, use the equity value, which is the market value minus any outstanding loans.

Unless otherwise noted, the following personal property values may be exempted up to their full value:

• Ammunition (up to 1,000 rounds)

• Bibles and schoolbooks

• Burial plot

• Clothing

• Family pictures

• Firearms (up to 3)

• Motor vehicle equity (up to $5,000 in a single vehicle)

• Tools of the trade necessary for your trade or business (up to $4,000)

• Wedding rings (up to $2,000)

A single filer may also exempt up to $4,000 in bedding, food, furniture, and household articles of their choice. Unlike the homestead exemption, married couples may double this exemption.

Wyoming codes §§ 1-20-105, 1-20-106(a) (I), 1-20-106(a) (ii), 1-20-106(a) (iii), 1-20-106(a) (iv), 35-8-104, 26-32-102.

Wyoming Money Benefits Exemptions

Wyoming is significantly more generous with its exemptions related to insurance coverage, public benefits, and monetary assets. Unless otherwise noted, the following may be exempted up to their full value:

• Annuity contract proceeds (up to $350 per month)

• Crime victims’ compensation

• Disability benefits (if the contract terms specify that they can’t be used to pay a beneficiary’s creditors)

• Earnings of National Guard members

• Firefighters’ death benefits

• Fraternal benefit society benefits

• General assistance

• Group life insurance or disability policy or proceeds, cash surrender and loan values, dividends, and waived premiums

• Life insurance policy (individual) proceeds, cash surrender and loan values, dividends, and waived premiums

• Life insurance proceeds held by the insurer (if the contract terms specify that they cannot be used to pay the beneficiary’s creditors)

• Liquor license and malt beverage permits

• Medical savings account contributions

• Pensions for criminal investigators, game and fish wardens, highway officers, police officers, and public employees

• Prepaid funeral contracts

• Retirement accounts – public or private - including IRAs, Roth IRAs, and SEP IRAs

• Tax-exempt retirement accounts, including 401(k)s, 403(b)s, profit-sharing, and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans, and IRAS and Roth IRAs to the current allowed amount under state and federal law

• Unemployment compensation

• Wages (the greater of either 75% of your disposable earnings or 30 times the federal minimum wage)

• Wages of inmates in either adult community corrections programs or correctional industries programs

• Wages of inmates on work release

• Workers’ compensation

Wyoming codes §§ 26-15-130, 26-15-131, 26-15-132, 26-15-133, 26-29-218, 1-15-511, 1-40-113, 7-16-308, 19-2-501, 42-2-113, 27-3-319, 27-14-702.

Does Wyoming Have a  Wildcard Exemption?

Unlike most other states, Wyoming does not have a “wildcard exemption.” A wildcard exemption allows you to protect a certain amount of value in any property of your choosing, even if it’s not covered by specific exemptions. This can be very helpful, especially since it can help you to keep certain items that may be of sentimental value to you. 

Unfortunately, since Wyoming does not have this particular exemption, you are only able to protect specific categories of assets according to the state’s specifications.

Need Help Filing Chapter 7 Bankruptcy in Wyoming? 

Bankruptcy is a legal process, and it can feel intimidating! Fortunately, help is available. It takes just two minutes to see if you’re eligible to use Upsolve's free filing app. This tool helps you complete your bankruptcy forms at no cost if you qualify. Upsolve has helped more than 13,000 people get rid of over $700 million of debt. (Check out our glowing user reviews!)

If you’d rather work with a seasoned bankruptcy attorney, Upsolve can connect you for a free consultation. Scheduling a free consultation with a bankruptcy attorney can provide valuable legal guidance and help you understand how to maximize your exemptions and protect your assets.