Iowa Bankruptcy Laws

Iowa bankruptcy laws are a specific set of laws that the bankruptcy courts in the state of Iowa follow, to handle the various bankruptcy cases for the permanent residents of Iowa. There are seven bankruptcy courts in Iowa categorized in two zones – the Iowa Southern District Court and the Iowa Northern District Court.

Exemptions Allowed Under The Iowa Bankruptcy Laws

Following are the types and the amount of the properties and various funds that are allowed for exemption, under the Iowa bankruptcy laws.

•You are allowed to use federal supplemental exemptions along with the Iowa specific exemptions.
•The great thing about the Iowa bankruptcy laws is that the homestead exemptions are allowed for an unlimited amount. You can exempt any real property or apartment that you own; no matter what is its value. However, the laws have put some restrictions on its area. If the properties are located in a town or city, you can exempt half acre only while 40 acres are allowed to be exempted for the properties located elsewhere.
•Disability benefits, health benefits, etc are allowed for exemption of up to fifteen hundred dollars.
•As per the Iowa bankruptcy laws, if you have acquired any life insurance policy within two years of filing the court petition for bankruptcy, you are allowed to exempt its proceeds for up to the amount of ten thousand dollars.
•Pension funds and benefits are allowed only for the following individuals:
◦Police officers
◦Disabled firefighters
◦Peace officers
◦Public employees
◦Federal government employees
•Furniture and other home appliances can be exempted for up to the amount of two thousand dollars in total.
•All types of books, family portraits, pictures, and paintings are exemptible under the Iowa bankruptcy laws, but only up to the amount of one thousand dollars in total.
•Wild card is also exemptible. This includes any personal property or cash of up to the value of hundred dollars.