Marberry Law Firm, P.C.

Most bankruptcies are "no asset cases". This means that there are no assets that are taken from the debtor by the court or bankruptcy trustee to be used to pay your creditors. So in most cases all assets owned by you are exempt and protected from being taken by the bankruptcy court.

The property exemptions to which a bankruptcy filer is entitled are governed by the laws of the State of Iowa. However, there are instances in which other State's exemption laws may have to be used; for example, because of a recent move.

Iowa has a long list of property that is exempt. For most bankruptcy filers this includes the normal and necessary personal property that you own and your home. Examples of property that are commonly exempt under Iowa law include:

Homestead

In most cases any equity you have in your homestead is exempt from creditors and you get to keep it through a bankruptcy as long as you continue to make the mortgage payments on the home. However, there are several very important exceptions to this and you need to consult with your bankruptcy attorney to make sure that any equity in your homestead is exempt. Other real estate, whether rental properties, farmland or otherwise, is generally going to be non-exempt and not protected and, if that property has any value over and above the mortgage, it can be taken by the trustee in a bankruptcy to be used to pay your unsecured creditors.

Automobile

Any person can exempt or protect an automobile up to the value of $7,000.00. If your automobile is secured to a bank, credit union or loan company you need to continue to make those loan payments if you wish to keep your vehicle through the bankruptcy.

Household furnishings, goods, clothing and jewelry

You can exempt up to $7,000.00 in value for your typical items of personal property in your home such as furniture, appliances, televisions and other media equipment, computers and related items and your clothing and dependent's clothing. Wedding and engagement rings are generally exempt up to $7,000.00 less items of other jewelry you may own which other jewelry cannot exceed $2,000.00.

401k, 403b, IPERS & IRA:

Almost all pension plans are exempt under Iowa law as long as they are properly established by the employer as ERISA qualified plans. IRA's are also exempt. Other investments, which you might think are retirement accounts, like simple annuities, may not be exempt. You need to consult with your bankruptcy attorney to make sure that any such investments you might have can be protected.

This brief description of Iowa exemption law is by no means meant to be exhaustive nor can you conclude from reading this list whether or not in your particular case any property you might own is exempt or protected. The question of what property you get to keep is obviously one of the most import issues in any bankruptcy and you should consult with your bankruptcy attorney to review with him or her a complete list of all of your property so that you can reach a determination of what property may be exempt and protected if you choose to file bankruptcy.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.