The Iowa bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Iowa. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Iowa you may also use certain federal exemptions in addition to your Iowa exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD | Real property or an apartment to an unlimited value; property cannot exceed ½ acre in town or city, 40 acres elsewhere | 499A.18, 561.2, 561.16 |
May record homestead declaration | 561.4 | |
INSURANCE | Accident, disability, health, illness or life proceeds or avails to $15,000, paid to surviving spouse, child or other dependent | 627.6(6) |
Employee group insurance policy or proceeds | 50-.12 | |
Life insurance proceeds to $10,000, acquired within 2 years of filing for bankruptcy, paid to spouse, child or other dependent | 627.6(6) | |
Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors | 508-32 | |
MISC. | Alimony, child support needed for support | 627-6(8)(d) |
Liquor licenses | 123.38 | |
Property of business partnership | 544.25 | |
PENSIONS also see wages | Disabled firefighters, police officers (only payments being received) | 410.11 |
Federal government pension (only payments being received) | 627.8 | |
Firefighters | 411.13 | |
Peace officers | 97A.12 | |
Police officers | 411.13 | |
Public employees | 97B.39 | |
Other pensions needed for support (only payments being received) | 627.6(8)(e) | |
PERSONAL PROPERTY | Appliances, furnishings and household goods to $2,000 total | 627.6(5) |
Bibles, books, portraits, pictures and paintings to $1,000 total | 627.6(3) | |
Burial plot to 1 acre | 627.6(4) | |
Clothing to $1,000 plus receptacles to hold clothing | 627.6(1) | |
Health aids | 627.6(7) | |
Motor vehicle, musical instruments and tax refund to $5,000 total, no more than $1,000 from tax refund | 627.6(9) | |
Rifle, musket; shotgun | 627.6(2) | |
Wedding or engagement rings | 627.6(1) | |
PUBLIC BENEFITS | Adopted child assistance | 627.19 |
AFDC | 627.6(8)(a) | |
Local public assistance | 627.6(8)(a) | |
Social security | 627.6(8)(a) | |
Unemployment compensation | 627.6(8)(a) | |
Veterans' benefits | 627.6(8)(b) | |
Workers' compensation | 627.13 | |
TOOLS OF TRADE | Farming equipment; includes livestock, feed to $10,000 (can't include car, In re Van Pelt, 83 B.R. 617 (S.D.IOWA 1987) ) | 627.6(11) |
Non-farming equipment to $10,000 (can't include car, In re Van Pelt, 83 B.R. 617 (S.D. Iowa 1987) ) | 627.6(10) | |
WAGES | Minimum 75% of earned but unpaid wages, pension payments; bankruptcy judge may authorize more for low-income debtors | 642.21 |
WILD CARD | $100 of any personal property, including cash | 627.6(13) |
For more information on filing bankruptcy in Iowa explore Iowa Bankruptcy Law.
