How to Qualify for Chapter 7 Bankruptcy in Wyoming
How to Qualify for Chapter 7 Bankruptcy in Wyoming
Filing for Chapter 7 bankruptcy in Wyoming can provide a fresh financial start for individuals overwhelmed by debt. However, not everyone automatically qualifies. Federal bankruptcy laws set specific requirements to ensure that Chapter 7 is used by those truly in need. If you are considering this option, it is important to understand the eligibility rules.
The Means Test
The first step to qualifying for Chapter 7 bankruptcy is passing the “means test.” This test compares your household income to the median income for a household of the same size in Wyoming.
- If your income is below the median: You typically qualify for Chapter 7.
- If your income is above the median: Additional calculations are required to determine whether your disposable income leaves you with the ability to repay debts under Chapter 13 instead.
Income and Expense Review
Even if you do not pass the initial income comparison, you may still qualify after considering your necessary monthly expenses. These include housing, utilities, food, transportation, and certain secured debts. If your disposable income is too low to support a repayment plan, Chapter 7 may still be available.
Previous Bankruptcy Filings
Eligibility also depends on your bankruptcy history. If you have received a Chapter 7 discharge within the past eight years, you cannot file again until that time period has passed.
Credit Counseling Requirement
Before filing, Wyoming residents must complete an approved credit counseling course within 180 days. This ensures you fully understand your options before moving forward.
Who Should Consider Chapter 7
Chapter 7 may be right for individuals who:
- Have significant unsecured debt, such as credit cards or medical bills.
- Do not have substantial assets they wish to protect.
- Cannot maintain payments under a structured repayment plan.
At Wiggam Law Office, LLC, we help Cheyenne residents understand whether Chapter 7 is the right choice and guide them through every step of the process.
