For many Wyoming residents, credit card debt becomes overwhelming due to high interest rates, job loss, medical bills, or unexpected financial setbacks. When minimum payments barely make a dent, bankruptcy may offer a path toward relief. Understanding how Wyoming bankruptcy law treats credit card debt can help you decide whether this option may be right for your situation. At Wiggam Law Office, LLC we can provide legal assistance to the Cheyenne public.

How Bankruptcy Addresses Credit Card Debt in Wyoming

Credit card debt is treated as unsecured debt, meaning it is not tied to any collateral. In both Chapter 7 and Chapter 13 bankruptcy, unsecured debts are typically dischargeable—meaning they can be eliminated or significantly reduced.

Chapter 7 Bankruptcy: Full Discharge of Credit Card Debt

Chapter 7 bankruptcy, often called “liquidation bankruptcy,” allows eligible individuals to wipe out most or all credit card debt.

Key points about Chapter 7 and credit card debt:

• Most credit card balances are fully dischargeable.
• Collection actions—including lawsuits, wage garnishments, and collection calls—stop immediately once you file.
• The process generally takes 3–5 months.
• You must pass the Wyoming means test to qualify, which evaluates your income compared to the state median.

If you qualify, Chapter 7 can provide fast and complete relief from overwhelming credit card debt.

Chapter 13 Bankruptcy: A Structured Repayment Plan

If you do not qualify for Chapter 7, or if you prefer to protect certain assets, Chapter 13 may be a better option.

In Chapter 13 bankruptcy:

• Credit card debts are included in a 3- to 5-year repayment plan.
• You may only need to repay a portion of your credit card debt.
• Any remaining balance after completing the plan is discharged.

This option can be helpful for individuals with steady income who want to reorganize their finances while keeping property that might otherwise be at risk in Chapter 7.

Will Bankruptcy Eliminate All Credit Card Debt?

Most credit card debt can be discharged, but there are exceptions. Debt may not be discharged if:

• It was obtained through fraud or misrepresentation.
• You made large purchases or cash advances shortly before filing.
• You used the card to pay for luxury goods or services right before bankruptcy.

A bankruptcy attorney can help determine whether any of your debt might be challenged.

How Bankruptcy in Wyoming Protects You

Filing for bankruptcy immediately triggers the automatic stay, a powerful legal protection that:

• Stops creditor harassment
• Halts wage garnishments
• Prevents lawsuits from continuing
• Stops bank levies and collection efforts

This protection remains in place throughout the bankruptcy process, giving you breathing room to get back on track financially.

Is Bankruptcy the Right Choice for Credit Card Debt?

Bankruptcy can be a powerful tool, but it is not the only option. It may be right for you if:

• Your credit card balances continue to grow despite regular payments.
• You rely on credit cards for basic expenses.
• You face aggressive collection actions.
• Debt consolidation or negotiation is not enough to solve the problem.

Wiggam Law Office, LLC can help you evaluate whether bankruptcy is your best path forward.