Iowa Bankruptcy Laws

The state of Iowa is divided into two bankruptcy districts: Iowa Northern Bankruptcy Court and Iowa Southern Bankruptcy Court. These courts serve the entire state of Iowa.

What happens at the bankruptcy hearing?
According to Jeff Mathias, J.D., an Iowa bankruptcy attorney, at your hearing the trustee will examine you concerning the contents of your petition and the availability of any assets to the estate. Creditors can also show up and ask you questions although in most cases none will. There is a problem with debtors filing bankruptcy under someone else's social security number. So the trustees are required to verify your identity and social security number. If you do not bring your social security card or other proof of your social security number along with photo ID to the hearing your case may dismissed.

Iowa Bankruptcy Exemptions
Exempt property is property that you are allowed to keep in a chapter 7 bankruptcies. State law determines what property is exempt. According to Lawyers.com, under Iowa bankruptcy laws, you may keep:

• Homestead to one-half acre in town, otherwise to 40 acres unless the property was acquired within the previous 1,215 days, and then the homestead exemption is limited to $125,000 in home equity under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
• Homestead bought with pension benefits or proceeds of sale.
• Household furnishings, goods and appliances to $2,000.
• Clothing to $1,000.
• Wedding ring.
• One shotgun and either one musket or one rifle.
• Books, Bibles, pictures, portraits and paintings to $1,000.
• Health aids.
• Musical instruments, one automobile and up to $1,000 in accrued wages and tax refund, aggregate amount for these items not to exceed $5,000.
• Tools of the trade for non-farmer to $10,000.
• Farm implements, livestock and feed to $10,000.
• Disposable earnings of farmer.
• Cash on hand, bank deposits or other personal property to $100.
• Deposits for such things as rent and utilities to $500.
• Pension benefits.
• Burial plot to one-acre.
• Unemployment benefits.
• Aid to dependent children.
• Group insurance benefits.
• Life insurance proceeds to $10,000.
• Health or disability insurance to $15,000.
• Social security, unemployment compensation or public assistance benefit.
• A veteran's benefit.
• A disability of illness benefit.
• Worker's compensation.
• Alimony, support or separate maintenance.
• National guard and state guard equipment.
• Public property necessary for carrying out purpose of public corporation.
• Assistance for adopted, hard-to-place homeless children.
• 75% of disposable earnings.

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.