Commencement of a bankruptcy case creates an estate. The estate technically becomes the temporary legal owner of all the debtor's property. It consists of all legal or equitable interests of the debtor in property as of the commencement of the case, including property owned or held by another person if the debtor has an interest in the property. Generally speaking, the debtor's creditors are paid from nonexempt property of the estate.

In Wyoming, as in all states across the United States, the commencement of a bankruptcy case results in the creation of a bankruptcy estate, which is governed by federal law, specifically the Bankruptcy Code (Title 11 of the United States Code). The estate is comprised of all the debtor's legal or equitable interests in property at the time the bankruptcy case is filed. This includes not only property that the debtor has in their possession but also property held by others if the debtor has an interest in it. The estate serves as a temporary legal owner of the debtor's assets and is managed by a bankruptcy trustee. The trustee's role is to liquidate any nonexempt assets and distribute the proceeds to the debtor's creditors. Exemptions are determined by state law or federal bankruptcy exemptions, and debtors are allowed to keep exempt property. In Wyoming, debtors may choose between state exemptions or federal bankruptcy exemptions. The process ensures that creditors are treated fairly and that the debtor can resolve their debts while retaining enough property to get a fresh start.