What Should I Look for in a Bankruptcy Attorney in Wyoming?
The thought of bankruptcy can be daunting, which is why we’d like to address some of your most pressing questions here in our FAQ. If you think you might need to file bankruptcy, or just want to know what it is all about, schedule a free consultation and read our Wyoming Bankruptcy FAQ below.
When Is The Right Time To File For Bankruptcy?
Although the right time to file for personal bankruptcy may differ for everyone, it might be time for you to really start thinking about it if:
Also, for tax purposes, people often file bankruptcy a few weeks after they get their tax refund in early spring. If you file in the fall or winter, the bankruptcy trustee may be entitled to a larger portion of your refund. This is a consideration you would want to talk to your attorney about.
Will They Take My Stuff During Bankruptcy?
Generally, in a bankruptcy case, there is a person who is called the Trustee who tries to obtain as much money as possible from you and distribute it fairly among the people you owe money to. The Trustee can take some property from you and sell it to do this. However, Wyoming bankruptcy courts, under Wyoming State law, put certain property off-limits for the Trustee to take from you. Wyoming Statute § 1-20-106, provides those protections.
Do my Spouse and I Have to File Separately?
Spouses usually file together. There is no additional cost for filing with a spouse versus filing alone. Sometimes married people do file on their own. This is something you would want to discuss with a bankruptcy attorney.
What Type of Personal Bankruptcy Is Right For Me?
The two primary types of personal bankruptcy a person can file for are Chapter 7 and Chapter 13.
Chapter 7 involves the liquidation of a person’s assets to pay off their outstanding debts, meaning many of their non-exempt possessions and assets are taken in exchange for total debt forgiveness.
A Chapter 13 bankruptcy allows a person to maintain ownership of their assets so long as they agree to and keep up with an appointed three- to five-year debt repayment plan.
If you have a lot of stuff that’s worth money, like side-by-sides, expensive hunting gear, etc. that you understandably want to keep or your income is too high to qualify for Chapter 7, Chapter 13 may be right for you. On the other hand, if you are drowning in debt and desperate for help, Chapter 7 is likely the best option for you.
What Debts Can’t Be Wiped Away When Filing For Personal Bankruptcy?
Medical bills, credit card debt, and more can be forgiven when filing for bankruptcy. However, that doesn’t mean that bankruptcy can wipe away all debt. For instance, bankruptcy cannot discharge:
*There are legal mechanisms to get rid of these debts, but you should not count on them. They are very difficult to discharge. however, you should speak with a reputable bankruptcy attorney to learn if your unique situation qualifies you.
How Much Does It Cost To File For Personal Bankruptcy?
Filing for bankruptcy does cost money (attorney fees + filing fees), however, we do permit payment plans. We cannot file your bankruptcy petition without having payment in full, because otherwise you would owe us money, and we would have a conflict of interest because we would have to list ourselves ad creditors! If you’re thinking you can simply cut your costs by handling your bankruptcy case all on your own, think again. It is a very difficult process. Our fees for the typical Chapter 7 bankruptcy is $2,500 total, this includes the filing fee.
What Does Discharge Mean?
Discharge is a term in bankruptcy law that means that you no longer owe the debts that are discharged. In bankruptcy, when the Court enters an order discharging your debts, that means that you no longer owe on those debts. However, if those debts are secured, with a vehicle or home, then the debt is still on the property and that property cannot be taken away.
What is the Means Test?
The means test was designed to limit the use of Chapter 7 bankruptcy to those who cannot afford to pay off their debts. The means test is what the Bankruptcy Court uses to decide if you have enough income to pay your debts. There are really two means tests. If you fail the first, then you can try the second.
The first means test is based on your gross income for the six months before you file for bankruptcy. Gross income is the total amount of money your household brings in before taxes or deductions. Your gross income for six months must not exceed the median family income set by the federal government for Wyoming. For example, if you had a family of four, your gross monthly household income cannot exceed $8,335 in the six months before you filed for you to qualify for Chapter 7 bankruptcy. Gross income includes all income, including proceeds from selling possessions, unemployment benefits, worker’s compensation benefits, bonuses, and wages or money from any source.
The second means test is used if you fail the first means test. It is more complicated. The test is done by subtracting set and accepted monthly expenses from your current monthly income (six-month average) to arrive at your monthly “disposable income.” The higher your disposable income, the more likely you won’t be allowed to use Chapter 7 bankruptcy. Instead, you’re expected to use your disposable income to repay creditors.
What Are Some Alternatives to Filing For Personal Bankruptcy?
The best alternative to bankruptcy is to try and get out of debt on your own. If you file you’ll have to undergo credit counseling anyway, so why not get a head start? You can also try getting another job, or cleaning out your house and selling everything you don’t need for a little extra cash. You might even try to communicate with your creditors and see if you can work something out that benefits you both. The point is, there are options out there; you simply have to decide if you’re willing to do whatever it takes to get back on track.
What Should I Avoid if Filing for Bankruptcy?
First and foremost, be completely honest on your bankruptcy petition and with your lawyer. The consequences of wrong information can be severe. Also, you want to be careful how you spend money while you are preparing to file for bankruptcy. This is an area where consulting with a lawyer can be helpful to make sure you lose as little as possible in a bankruptcy, pre-filing planning with a lawyer.
When Will My Garnishments Stop?
Garnishments stop when you file for bankruptcy. This can oftentimes be several months after you start the process with an attorney. If you get the required information promptly from the attorney, it can sometimes take a matter of weeks. It is important to remember that nothing happens legally until you complete the bankruptcy petition and it is filed in Court.
How Will Filing For Personal Bankruptcy Impact Me?
Everything from your credit score to your assets may be affected by filing for bankruptcy. In terms of your credit score, if yours is decent or even on the high side, you will likely see a big drop that could affect other areas of your life later on, like getting a loan or credit card. Secondly, you also have to consider how long bankruptcy will stay on your “record.” For Chapter 7, that number of 10 years since none of the debt is repaid. However, Chapter 13 is a little better, falling off after only 7 years since a good portion of the debt has been paid off. Lastly, if you’re married, you may be surprised to know that only assets belonging to the person filing and jointly owned assets can be liquidated to pay off debts. Assets belonging solely to the spouse not filing may be spared.
Don’t go through the bankruptcy process alone. If you have any additional questions or wish to speak with our dedicated Wyoming bankruptcy lawyers about your case, simply contact 307 Bankruptcy for a free consultation today.
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