Sandra owns a home in Casper, Wyoming with $85,000 in equity. She has no mortgage. A contractor wins a civil judgment against her for $30,000. Sandra is concerned about losing her home to satisfy the judgment. Which statement accurately describes the protection Wyoming law provides her?

Correct Answer

C) Sandra's homestead exemption protects $20,000 of her equity from the unsecured judgment creditor.

Wyoming's homestead exemption protects $20,000 of equity in a primary residence from unsecured creditors, including civil judgment liens. Since the contractor's $30,000 judgment is an unsecured creditor claim, Sandra's first $20,000 of equity is shielded. However, the remaining $65,000 in equity above the exemption amount could potentially be reached by the creditor. The exemption must be properly claimed.