How to Settle a Debt in Wyoming: Your Step-by-Step Guide

Most Wyoming residents carry some type of debt. Sometimes life happens and you fall behind on payments.

When you can’t get back on track, creditors may take legal action. They’ll file a debt lawsuit against you.

A judgment makes life miserable. Creditors can freeze your bank account, garnish your wages, or seize your property.

You can settle your debt before going to court. We’ll show you how to negotiate and protect yourself under Wyoming law.

Follow Three Steps to Settle Debt in Wyoming

You can settle your debt before your court date. Follow these three steps:

1. Respond to the debt lawsuit with an Answer
2. Make an offer to start settlement negotiations
3. Get the settlement agreement in writing

Below, we’ll cover each step in detail.

Step 1: Respond to the Debt Lawsuit with an Answer

Creditors and debt collectors start lawsuits by filing a Summons and Complaint. The Complaint lists reasons for their claim, including the amount you owe.

You should respond with an Answer even if you plan to settle. An Answer is your legal defense to the Complaint.

Your Answer should respond to each claim listed against you. Include all reasons why you believe the lawsuit is invalid.

You might claim insufficient validation of debt. Or you might argue the statute of limitations has passed.

You have 20 days to respond to a debt lawsuit in Wyoming. You get 30 days if served outside Wyoming.

Missing the deadline leads to a default judgment. With a default judgment, creditors can garnish wages and seize property.

Filing an Answer protects you from default judgment. It buys you time to work out a settlement agreement.

Our partner Solo helps you respond to debt lawsuits quickly and correctly.

Step 2: Make an Offer to Start Negotiations

Determine how much money you can offer to settle the debt. Consider your savings and upcoming paychecks.

You can sell items you don’t need. You can borrow money from friends and family.

Higher offers get accepted more often. We recommend starting negotiations at 60% of the total amount owed.

Expect your creditor to counter with their own offer. Several rounds of negotiation are common before reaching agreement.

The type of debt affects how much creditors will settle for. Consider these factors:

• Is the debt a signed promissory note or book account?
• Do you have a meritorious defense?
• Are there any offsets?
• Does the debt have interest?
• Is there a valid fee-shifting provision?
• When was the last payment on the debt?
• Is the debt owned by the original creditor or assigned?
• Is it part of a federal or state loan program?
• Is it secured credit?
• Is the debt dischargeable in bankruptcy?

All these factors influence settlement decisions. You might settle for less than 60%.

Never accept a settlement you can’t afford. If the offer is impossible, explain your financial circumstances.

Creditors may accommodate by lengthening repayment time or accepting less. Failing to repay according to settlement terms restarts the lawsuit.

Our partner Solo sends and receives settlement offers for you.

Step 3: Get the Settlement Agreement in Writing

Get the agreement in writing before transferring any payment. Formal written agreements protect you.

Your agreement should include the repayment amount, due date, and payment location. It should state that your creditor waives further collection activities.

You can prepare an agreement before negotiating. Insert the deal terms when you reach agreement.

Include space for both parties to notarize the contract. Notarizing provides witnesses and additional protection.

Wyoming Debt Settlement Example

Sarah lives in Wyoming and receives a Summons and Complaint from ABC Creditors. She stopped paying because she lost her job.

ABC Creditors is suing for $2,000 total debt. After filing an Answer, Sarah contacts her creditor to arrange settlement.

She offers 60% of the debt’s value, or $1,200. ABC Creditors accepts after learning of her job loss.

They sign the settlement agreement. ABC Creditors drops the lawsuit against Sarah.

Wyoming Debt Collection Laws Protect You

Wyoming fully accepts the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from abusive creditors and debt collectors.

Under the FDCPA, creditors and debt collectors cannot:

• Use obscene or threatening language when contacting you
• Tell you that you’ll go to jail for nonpayment
• Contact people you know to tell them about your debt
• Call you before 8 a.m. or after 9 p.m.
• Pretend to be someone they aren’t, like law enforcement
• Threaten legal action they don’t plan to take
• Call you more than seven times over seven days

Wyoming has a statute of limitations on debt collection actions. Creditors can pursue written obligations for up to 10 years.

Oral commitments can be pursued for 8 years. Debts on account and judgments have a five-year limit.

Federal Debt Settlement Regulations

The Federal Trade Commission expanded debt settlement regulations. All 50 states, including Wyoming, follow these rules.

Debt settlement companies cannot:

• Charge upfront fees. Companies cannot collect fees before settling your debt.
• Fail to disclose information. Companies must disclose costs, timeframes, consequences, and customer rights.
• Misrepresent their services. No false or unsubstantiated claims are allowed.

Best Ways to Send Settlement Offers

You can email, call, or send letters to creditors. Email is usually the best option.

Email keeps a written record of conversations. You can consider statements before making commitments.

If you prefer phone negotiations, record the call. Under Wyoming law, only one party must consent to recording.

How to Get Additional Debt Relief in Wyoming

You have options beyond debt settlement. Consider credit counseling to create a debt management plan.

Credit counseling can lower interest rates and consolidate payments. Our partner Cambridge Credit Counseling helps Wyoming residents reduce monthly payments.

Bankruptcy may be an option if your debt is overwhelming. Chapter 7 bankruptcy can discharge unsecured debts entirely.

Chapter 13 bankruptcy creates a manageable repayment plan. Consult with a bankruptcy attorney to explore your options.

Debt Settlement Is Possible in Wyoming

You can settle debt whether facing a lawsuit or dealing with old unpaid bills. Debt settlement involves evaluating what you can afford.

You’ll negotiate an agreement with your creditors. Settlement doesn’t look as favorable on your credit report as full repayment.

But it helps when you can’t afford full repayment. It’s better than the more drastic measure of bankruptcy.

Professional help is available if you need it. You don’t have to negotiate with aggressive debt collectors alone.