Financial hardship often hits hardest when unemployment and rising bills happen at the same time. If you are out of work in Wyoming and struggling with debt, you may be considering bankruptcy but wondering whether filing while unemployed is the right move. For many people, unemployment can actually make the bankruptcy process easier—but the timing and chapter you choose matter. At Wiggam Law Office, LLC we can provide legal assistance to the Cheyenne public.

Can You File for Bankruptcy While Unemployed in Wyoming?

Yes. Being unemployed does not prevent you from filing for bankruptcy. In fact, unemployment can impact which type of bankruptcy you qualify for and how much relief you may receive.

Whether Chapter 7 or Chapter 13 is right for you depends largely on your financial situation, current income, and long-term goals.

How Unemployment Affects Chapter 7 Bankruptcy

Chapter 7 is often easier to qualify for when you are unemployed because you are more likely to pass the Wyoming means test, which compares your income to the state median.

Advantages of filing Chapter 7 while unemployed:

• Most debts, including credit cards and medical bills, are fully dischargeable.
• Collections and wage garnishments stop immediately through the automatic stay.
• The process typically lasts only 3–5 months.
• Lower income can increase your chances of approval.

Chapter 7 is often the fastest path to relief if you have little or no income and significant unsecured debt.

How Unemployment Affects Chapter 13 Bankruptcy

Chapter 13 requires a steady income because you must commit to a 3–5-year repayment plan. This means:

• If you are unemployed with no income, Chapter 13 may not be an option right now.
• If you receive unemployment benefits or have other income sources, a Chapter 13 plan may still be possible.
• If you expect to return to work soon, you may be able to propose a plan that starts once income is restored.

Unemployment doesn’t automatically disqualify you, but consistent income is key for Chapter 13.

Is Filing While Unemployed a Good Idea?

It can be, depending on your financial needs.

You may benefit from filing now if:

• You have no realistic way to repay your debts.
• Creditors are threatening lawsuits or collections.
• You want a clean financial slate before returning to the workforce.
• You qualify for Chapter 7 and need immediate relief.

You may want to wait before filing if:

• You expect significant new debt (such as medical bills) before finding work.
• Your financial situation may improve soon.
• You want to file Chapter 13 but do not yet have income to support a repayment plan.

A knowledgeable bankruptcy attorney can help you determine the best timing.

How the Automatic Stay Protects You While Unemployed

Once you file for bankruptcy, the automatic stay goes into effect. This halts:

• Collection calls
• Lawsuits
• Wage garnishments
• Bank account levies
• Foreclosure or repossession actions

For someone who is unemployed, these protections can provide critical breathing room.

Choosing the Best Path Forward

Filing for bankruptcy while unemployed can be a strategic financial decision, especially if you qualify for Chapter 7 and need fast relief. Each case is different, and timing can affect the success of your filing. Wiggam Law Office, LLC can guide you through your options and help you determine whether filing now is in your best interest.