Methods for operating a wind turbine system are provided. In one embodiment, a method includes adjusting a threshold direct current (DC) bus voltage for a dynamic brake in a wind turbine power converter above a reference DC bus voltage based on at least one system condition. The method further includes gating the dynamic brake on when an experienced DC bus voltage is equal to or greater than the threshold DC bus voltage, and inputting a dynamic brake condition into a controller when the dynamic brake is gated on. The method further includes determining if a grid fault has occurred, reducing power generation of the wind turbine if no grid fault has occurred, and blocking the power converter if a grid fault has occurred. The method further includes gating the dynamic brake off when the experienced DC bus voltage is less than the threshold DC bus voltage.