Bankruptcy exemptions protect the equity in your property from creditors and the bankruptcy court—preventing the equity from being used to pay your creditors. Equity is the value of property after you subtract the amount of any liens against the property from its fair market value.

The equity in your home is one such asset in bankruptcy. And bankruptcy exemptions—including the homestead exemption—allow you to protect the property you will need to maintain a home and employment after bankruptcy.

Bankruptcy exemption amounts vary by state, so the amount you will be able to protect will depend on where you live and the type of bankruptcy you file (Chapter 7 or Chapter 13).

In Wyoming, bankruptcy exemptions allow individuals to protect certain property from creditors when they file for bankruptcy. The homestead exemption is particularly relevant for protecting equity in one's home. As of the current regulations, Wyoming allows a homestead exemption of up to $20,000 in equity for an individual's residence. This means that if the equity in your home does not exceed $20,000, it cannot be used to pay creditors in a bankruptcy case. For married couples filing jointly, this amount may be doubled. It's important to note that these exemptions apply to Chapter 7 bankruptcy, where assets can be liquidated to pay off debts. In Chapter 13 bankruptcy, debtors reorganize their debts and make payments over time, so exemptions will affect the amount they pay to unsecured creditors. The specific exemptions and amounts are subject to change, so it's advisable to consult with an attorney for the most current information and personalized advice.