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CHAPTER 13 BANKRUPTCY
in Wyoming
information and answers to frequently asked questions
Chapter 13 Bankruptcy
a structured plan to protect what matters and get caught up - without starting from zero.
If you're behind on your mortgage, facing vehicle repossession, dealing with tax debt, or you make too much for Chapter 7, Chapter 13 can be a powerful tool. Like Chapter 7, Chapter 13 can also stop collections lawsuits, garnishments, collector calls, and foreclosure. Chapter 13 allows you to reorganize debts through a court-approved repayment plan—often while stopping foreclosure, halting garnishments, and protecting assets you want to keep.
to find out whether Chapter 13 is the right strategy for your goals.
how Chapter 13 Bankruptcy works
Chapter 13 is sometimes called “repayment plan" bankruptcy.
Instead of wiping out debt quickly like Chapter 7, Chapter 13 creates a monthly payment plan (usually 3–5 years) based on your income, household size, and reasonable expenses.
During the plan, you make payments to a Chapter 13 trustee, who distributes funds to creditors according to bankruptcy law and your confirmed plan. At the end of your plan, any unpaid unsecured debts are usually discharged.
Chapter 13 vs. Chapter 7
Chapter 7 (in general)
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Faster
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Often lower total cost
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Eliminates eligible unsecured debt through discharge
Chapter 13 (in general)
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A monthly plan which lasts 3–5 years
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Designed to catch up on secured/priority debt and protect assets
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Eliminates eligible unsecured debt through discharge
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Often used when you’re behind on a house or car, or when Chapter 7 isn’t available or has an undesirable outcome
If you’re deciding between the two, the right question usually isn’t “Which is better?” - it’s: Which one actually accomplishes your goals with the least risk?
Check out our blog post below for more information on the differences between Chapter 13, Chapter 7, and Debt Management Plans.
Who Chapter 13 is best for
Chapter 13 works best for those with a stable source of income that can support regular payments to the trustee.
Chapter 13 can help you:
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Stop foreclosure and catch up on missed mortgage payments over time
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Stop repossession and catch up on car payments (and sometimes reduce interest)
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Manage tax debt and other priority debts through a structured plan
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Address judgment liens and certain secured debts (case-specific)
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Handle debt when you don’t qualify for Chapter 7
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Protect property you might lose in Chapter 7 (depending on your asset picture)
(Not every goal fits every case. The right plan depends on your income, assets, and timing.)
What to expect:
The Chapter 13 Process
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Here’s the typical flow:
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Consultation + strategy — We identify goals (save the home, stop a garnishment, manage taxes, etc.).
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Document collection — Income, tax returns, bank statements, creditor notices, and a full financial snapshot.
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File the case — Automatic stay usually begins.
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Plan payments start — In most cases, you start plan payments shortly after filing.
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§341 meeting — A trustee meeting where you answer standard questions (I prepare you thoroughly).
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Confirmation process — The plan is negotiated/approved (confirmed) through the court process.
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Plan period (3–5 years) — You make payments and stay current on ongoing obligations.
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Discharge — After successful completion, eligible remaining unsecured debt may be discharged.
What happens after you file.
Once a Chapter 13 case is filed, the automatic stay generally goes into effect. The automatic stay typically stops collection activity, including creditor calls, lawsuits, and garnishments—and can pause foreclosure activity while the case is pending.
Then we build and propose a plan that is realistic, compliant, and aligned with what you’re trying to protect (home, vehicle, paycheck, peace of mind).
Why it helps to work with a Chapter 13 Lawyer
Chapter 13 is one of the most powerful tools in bankruptcy law—but it’s also the most procedural. A do-it-yourself filing can work for some people, but Chapter 13 is where small errors (in math, timing, forms, or documentation) can snowball into dismissal, loss of protection, or a plan that fails months later.
Working with an attorney gives you real advantages:
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Correct plan design from the start. Chapter 13 isn’t just “fill out forms.” The plan has to meet legal requirements, address priority debts, secured debts, arrears, and trustee expectations—while still being affordable.
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A strategy tailored to your goals. Saving a home, keeping a vehicle, dealing with taxes, stopping garnishment, protecting equity—each goal changes the legal approach and the numbers.
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Fewer surprises with the trustee and creditors. Trustees and creditors review cases carefully. An attorney helps anticipate objections, respond properly, and keep your case moving toward confirmation.
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Protection against common DIY mistakes. DIY cases often run into issues with missing documents, incorrect income calculations, incomplete creditor lists, exemption problems, or unrealistic budgets—problems that can lead to delays, added cost, or dismissal.
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Guidance when life changes mid-plan. Job changes, medical events, unexpected expenses, tax issues—Chapter 13 often requires adjustments. An attorney can evaluate options like modification and help you stay on track rather than starting over.
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Clear communication and a steady process. You’ll know what’s due, when it’s due, and what matters most—so you’re not trying to decode court notices under stress.
If you’re considering Chapter 13, the goal isn’t just to file—it’s to file in a way that gives you the best chance of getting confirmed and finishing successfully.
Common Concerns
“Do I have to pay back everything?”
Not necessarily. Many Chapter 13 plans focus on:
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Trustee fees + attorney fees
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Priority debts (like certain taxes or support obligations)
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Arrearages (past-due mortgage/car payments)
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And sometimes only a portion of unsecured debt—depending on income and non-exempt equity rules
“What if my income changes?”
Chapter 13 is a living plan. If something changes—job, hours, medical issue—we look at options (including modification or other solutions). The key is addressing issues early, before they become emergencies.
“Will I lose my house or car?”
Chapter 13 is often used specifically to prevent losing a home or vehicle, but the details matter (equity, arrears, payment ability, and timing). We evaluate this carefully before filing.
DISCLAIMER:
This page is for educational information only and is not legal advice. Viewing this page or contacting Wright Law, LLC does not create an attorney–client relationship. Results depend on the facts of each case.