If you file bankruptcy in Wyoming, the most important rule to understand up front is this: Wyoming has opted out of the federal bankruptcy exemption system. Unlike residents of states such as Texas or Pennsylvania, Wyoming filers may not choose the federal exemption list found in 11 U.S.C. § 522(d). You must use Wyoming's own exemptions, found mainly in Title 1, Chapter 20 of the Wyoming Statutes, combined with the separate set of federal nonbankruptcy exemptions (which protect things like Social Security, veterans' benefits, and most ERISA-qualified pensions). That single choice shapes everything else, because Wyoming's homestead exemption and its lack of a broad cash "wildcard" make Wyoming meaningfully different from neighboring states.
Wyoming's Homestead Exemption
Wyoming's homestead exemption is set by Wyo. Stat. § 1-20-101. It protects up to $20,000 of equity in the home or other property you occupy as your residence. The protection covers a house and the land it sits on, and Wyoming law also extends homestead protection to certain mobile homes and house trailers occupied as a residence.
A key feature of Wyoming's homestead is that it is per person, not per household. Where a married couple jointly owns and occupies the home, each spouse may claim the exemption, so a couple can protect up to $40,000 of combined equity. "Equity" means the value of the home minus what you still owe on the mortgage and any liens, so if your home is worth $250,000 and you owe $235,000, your $15,000 of equity falls comfortably within the exemption.
Wyoming's homestead is modest compared with unlimited-homestead states like Texas, Florida, and Kansas, and compared with the federal figure (which is inflation-adjusted every three years). If you have substantial home equity, that gap matters a great deal in Chapter 7, where a trustee can sell non-exempt assets to pay creditors. Because the exemption protects a dollar amount of equity rather than the whole home, high-equity homeowners should get advice before filing.
Vehicle, Personal Property, and Tools of the Trade
Wyoming protects a range of personal property under Wyo. Stat. §§ 1-20-105 and 1-20-106. The commonly cited categories include:
- Motor vehicle: Wyoming exempts equity in a motor vehicle up to a set dollar limit. This figure has been increased by the Legislature in recent years, so before relying on a specific number, confirm the current amount in Wyo. Stat. § 1-20-106 or with a Wyoming bankruptcy attorney. As with the homestead, the exemption protects your equity, not the sticker price.
- Wearing apparel: Necessary clothing is exempt up to the dollar limit stated in Wyo. Stat. § 1-20-105 (commonly cited at $2,000 in value).
- Household furniture, bedding, and food: Furniture, bedding, household articles, and provisions are exempt up to a per-person limit under § 1-20-106, which can grow for larger households. Confirm the current figure because the statute has been amended.
- Tools of the trade: The tools, implements, team, stock in trade, or professional library and instruments you need to carry on your trade or profession are exempt up to the amount set in § 1-20-106.
Other targeted protections in Wyoming and federal nonbankruptcy law include most retirement accounts (IRAs, 401(k)s, and qualified pensions), life insurance proceeds and certain cash values, disability and medical benefits, and prescribed health aids. Public assistance and unemployment compensation are also generally protected.
The Missing Piece: No Broad Wildcard
One of the biggest practical differences in Wyoming is what it does not have. The federal exemption system includes a generous "wildcard" that lets filers protect cash, a bank balance, or any property of their choice. Wyoming has no comparable general-purpose wildcard exemption. That means a Wyoming filer cannot simply shield a chunk of money in checking or a tax refund the way a debtor using the federal list can.
This is precisely why the opt-out matters and why filers cannot grab the federal wildcard instead. If you have non-exempt cash, a second vehicle, valuable collectibles, or a tax refund coming, those assets may be exposed in Chapter 7. In Chapter 13, you keep your property but must pay unsecured creditors at least the value of what is not exempt over your repayment plan, so exemptions still drive the math.
How Exemptions Work in Chapter 7 vs. Chapter 13
In a Chapter 7 liquidation, a trustee may sell property that is not covered by an exemption and distribute the proceeds to creditors. Because most Wyoming filers' essential property fits within the exemptions, the great majority of Chapter 7 cases are "no-asset" cases in which nothing is actually sold. The exemptions are what make that possible.