Iowa Bankruptcy Exemptions

This list of exemptions updated December 2009. All law references are to Iowa Code Annotated unless otherwise noted. Federal bankruptcy exemptions are not available in Iowa.

Homestead

499A.18 & 561.2 & 561.16 - Real property or apartment, unlimited in value, but cannot exceed 1/2 acre in a city or town, or 40 acres elsewhere. Husband and wife may not double.

561.4 - Homestead declaration may be recorded.

Personal Property

627.6 - Motor vehicle up to $7,000; musical instruments, appliances, household furnishing, clothing and its storage containers as well as other personal property up to $7,000; books, pictures, paintings, portraits, and bibles up to $1,000 total; burial plot up to 1 acre; Jewelry up to $2,000; health aids; wedding and engagement rings, if purchased after marriage or within the last 2 years there is a limit of $7,000; rifle or musket; shotgun; residential utility or security deposits up to $500 or advance of rent; Wrongful death proceeds need for support; up to $1,000 of any other personal property including cash.

Wages

356.29 - Salary or wages of a prisoner.

642.21

Expected Annual Earnings	Amount NOT exempt per year
$0 to $12,000	$250
$12,000 to $16,000	$400
$16,000 to $24,000	$800
$24,000 to $35,000	$1,000
$35,000 to $50,000	$2,000
More than $50,000	10%

Not exempt from child or spousal support.

Pensions

11 U.S.C. § 522 - Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person.

97A.12 - Peace officers.

97B.39 - Public employees.

410.11 - Disabled firefighters and police officers, but only for benefits being received.

411.13 - Police officers and firefighters.

627.6 - Other pensions, annuities and contracts are fully exempt; however, contributions that were made within the year prior to filing for bankruptcy are not exempt; retirement plans, Roth IRAs, IRAs, ERISA-qualified benefits, and Keoghs.

627.8 - Federal government pension.

Public Benefits

239B.6 - Aid to dependant children.

627.6 - Unemployment compensation, Veterans' benefits, Social Security, and any public assistance benefit.

627.13 - Workers' compensation.

627.19 - Adopted child assistance.

Tools of Trade

627.6 - Nonfarming equipment up to $10,000; farming equipment, including livestock and feed, up to $10,000.

Alimony and Child Support

627.6 - Alimony and child support needed for support.

Insurance

508.32 - Life insurance proceeds if policy prohibits use to pay creditors.

509.12 - Employee group insurance policy or proceeds.

512B.18 - Fraternal benefit society benefit.

627.6 - Life insurance proceeds (up to $10,000 if acquired within 2 years prior to filing for bankruptcy) paid to spouse, child or other dependant; accident, disability, health, illness, or life proceeds; illness or disability benefits; proceeds from all matured accident, health, disability and life insurance policies upon the death of the insured up to $15,000 are exempted from beneficiary's debts incured before the insured's death.

Misc.

123.38 - Liquor licenses.

Other - Add any applicable Federal Nonbankruptcy Exemptions

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