Bankruptcy FAQs
Get answers to the most common questions about bankruptcy and debt relief
Have questions about bankruptcy? You’re not alone. Here are answers to the questions we hear most often.
No. Wyoming has generous exemption laws that protect essential property like your home (up to equity limits), car, clothing, household goods, and retirement accounts. Most people who file Chapter 7 keep all their property.
Yes, in most cases. If your car is paid off and within exemption limits, you can keep it. If you’re still making payments, you can often continue payments and keep the vehicle through reaffirmation or Chapter 13 bankruptcy.
Yes. Filing bankruptcy triggers an automatic stay that immediately stops foreclosure proceedings. Chapter 13 allows you to catch up on missed mortgage payments over 3-5 years while keeping your home.
Chapter 7 stays on your credit report for 10 years, Chapter 13 for 7 years. However, most people start rebuilding credit immediately and can qualify for new credit within 1-2 years with responsible financial management.
Generally no, unless your employer is a creditor. Bankruptcy filings are public record, but most employers don’t actively search these records. If you’re having wages garnished, your employer will be notified when the garnishment stops.
Yes. You can file individually. However, if you live in Wyoming (a community property state), your spouse’s income may still be considered for the means test, and some joint debts may be affected.
Certain debts cannot be eliminated: recent income taxes, child support, alimony, student loans (except in rare hardship cases), debts from fraud or malicious injury, and DUI-related debts.
Chapter 7 typically costs $1,500-$2,500 including attorney fees and court filing fees. Chapter 13 costs $3,000-$4,000. We offer flexible payment plans to make legal representation affordable.
Yes. Many lenders will consider you for an FHA loan 2 years after Chapter 7 discharge or 1 year after Chapter 13 payments begin (with court approval). Conventional loans typically require 4 years after discharge.
You’ll attend one brief meeting (341 Meeting of Creditors) with the bankruptcy trustee. This is usually informal, lasts 10-15 minutes, and we’ll be there with you. In Chapter 13, you may also attend a brief confirmation hearing.
Yes, but there are time limits. You must wait 8 years between Chapter 7 discharges, 4 years between Chapter 7 and Chapter 13, and 2 years between Chapter 13 filings.
Chapter 7 liquidates unsecured debts quickly (3-6 months) but may require surrendering some assets. Chapter 13 reorganizes debts into a 3-5 year payment plan, letting you keep all property and catch up on missed payments.
Yes, immediately. Filing bankruptcy triggers an automatic stay that stops all collection actions, including wage garnishment, bank levies, and lawsuits.
If you owe balances on credit cards, they must be included in bankruptcy and will be closed. You cannot selectively exclude creditors. However, you can apply for new credit cards after filing.
Immediately. Many people receive credit card offers shortly after discharge. We recommend starting with a secured credit card, making on-time payments, and keeping balances low. Most clients rebuild to 650+ credit scores within 18-24 months.
Still Have Questions?
Every situation is unique. Schedule a free consultation to discuss your specific circumstances and get personalized advice.