Iowa Bankruptcy Laws
The process of going through bankruptcy is protected by laws at the state and federal levels. Bankruptcy laws are different in every state and can be rather complicated. Prior to deciding to file for bankruptcy, make sure you have all the information about how the laws will affect you. You can get answers by talking to a local bankruptcy lawyer. If you fill out the free form below, you can get a free case evaluation with an attorney in your area.
When you owe more than you can repay, either because of your circumstances or because of poor financial decisions, consider looking into Iowa bankruptcy law to see if it provides the protections you need.
Iowa Bankruptcy Exemptions
Bankruptcy protection allows you to keep some of your assets. Under Iowa bankruptcy law, you may keep:
- Your homestead, up to one-half acre in town or 40 acres outside of town, with a limit of $125,000 in home equity
- Up to $7,000 for personal property, including furniture, clothing, musical instruments and appliances, among others
- Wedding and engagement rings, with a $7,000 limit if they were purchased after the wedding and in the two years before filing
- A shotgun and either a rifle or a musket
- UP to $7,000 for your vehicle
- Up to $10,000 for non-farming tools of the trade
- Up to $1,0000 for books, pictures, paintings and portraits
- Health aids
- Up to $1,000 in earned but unpaid wages and tax refunds
- Up to $10,000 for livestock, feed and farm implements
- A farmer’s disposable earnings
- Burial plot, no bigger than one acre
- Aid to dependent children
- Pension benefits
- Unemployment benefits
- Public aid or compensation
- Group insurance benefits
- Up to $10,000 for life insurance proceeds
- Up to $15,000 for health or disability insurance proceeds
- Public benefits
- Alimony or child support
- National or state guard equipment
- 75 percent of disposable earnings
- Property used for carrying out the purposes of a public corporation
- Assistance received for adopted homeless children
- Up to $100 for bank deposits, cash on hand or non-exempt property
Some debts, like your car loan, can be reaffirmed if you desire to keep paying on the loan in order to keep the property. This must happen within 45 days of the 341 meeting.
Iowa Chapter 7 Bankruptcy Law
Chapter 7 bankruptcy provides a chance to eliminate most debts. The court takes the debtor’s non-exempt assets in order to sell them and pay the creditors, and any remaining debt is forgiven. Debtors must pass the means test to file this form of bankruptcy.
Iowa Chapter 13 Bankruptcy Law
Those who have assets they do not wish to lose or too much income to pass the means test should apply for Chapter 13 bankruptcy. This form of bankruptcy makes an attempt to repay the debt through a new payment plan that is implemented under court supervision.
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