Bankruptcy Exemptions in Iowa
What property you can keep in bankruptcy in Iowa: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Iowa filers must use Iowa's exemptions: a debtor to whom Iowa law applies "is not entitled to elect to exempt" the property listed in 11 U.S.C. 522(d). Iowa Code § 627.10
| State or federal exemptions | Iowa filers must use Iowa's exemptions: a debtor to whom Iowa law applies "is not entitled to elect to exempt" the property listed in 11 U.S.C. 522(d). Source: Iowa Code § 627.10 |
|---|---|
| Homestead exemption | No dollar limit. The homestead is limited by area: up to one-half acre within a city plat, otherwise up to 40 acres in total (and if its value is under $500 it may be enlarged to reach that amount). People living together as one household may claim only one homestead. § 561.2: https://www.legis.iowa.gov/docs/code/561.2.pdf. Federal law (11 U.S.C. 522(p)) can cap a homestead interest acquired within 1,215 days before filing. Source: Iowa Code §§ 561.16, 561.2 |
| Car exemption | The debtor's interest in one motor vehicle, up to $7,000. Source: Iowa Code § 627.6(9) |
| Wildcard exemption | Up to $1,000 in total in cash, bank or credit union deposits, or any other personal property, whether or not otherwise exempt. Source: Iowa Code § 627.6(14) |
| Retirement accounts | Payments under pension, annuity or similar plans are exempt (except portions from above-normal contributions made within one year before a bankruptcy filing), and contributions and assets in qualified plans, IRAs and Roth IRAs, including rollovers, are exempt from execution and creditors' claims. Source: Iowa Code § 627.6(8)(e)-(f) |
| Wages | In bankruptcy, the debtor's interest in accrued wages and state and federal tax refunds as of the filing date is exempt up to $1,000 in total. Separately, outside bankruptcy, garnishment follows the federal limits and annual per-creditor caps (e.g., $250 per year for earnings under $12,000). § 642.21: https://www.legis.iowa.gov/docs/code/642.21.pdf |
More Iowa bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Iowa?
Iowa filers must use Iowa's exemptions: a debtor to whom Iowa law applies "is not entitled to elect to exempt" the property listed in 11 U.S.C. 522(d).
How much home equity is protected in bankruptcy in Iowa?
No dollar limit. The homestead is limited by area: up to one-half acre within a city plat, otherwise up to 40 acres in total (and if its value is under $500 it may be enlarged to reach that amount). People living together as one household may claim only one homestead.
Can I keep my car in bankruptcy in Iowa?
The debtor's interest in one motor vehicle, up to $7,000.
Does Iowa have a wildcard exemption?
Up to $1,000 in total in cash, bank or credit union deposits, or any other personal property, whether or not otherwise exempt.
Are retirement accounts protected in bankruptcy in Iowa?
Payments under pension, annuity or similar plans are exempt (except portions from above-normal contributions made within one year before a bankruptcy filing), and contributions and assets in qualified plans, IRAs and Roth IRAs, including rollovers, are exempt from execution and creditors' claims.
Are wages protected in bankruptcy in Iowa?
In bankruptcy, the debtor's interest in accrued wages and state and federal tax refunds as of the filing date is exempt up to $1,000 in total. Separately, outside bankruptcy, garnishment follows the federal limits and annual per-creditor caps (e.g., $250 per year for earnings under $12,000).
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.