Iowa Asset Protection Laws
These assets are exempted from a state court or bankruptcy proceeding in Iowa.
Homestead: Real property with unlimited value. Property cannot exceed 1/2-acre in town or city, 40 acres elsewhere.
Pensions and Retirement Benefits: Funds exempted for firefighters, police and public employees. Payments being received from other pensions exempt if needed for support. Roth IRAs and regular IRAs up to $1,245,000 per person.
Insurance: Life insurance acquired within two years of bankruptcy filing, up to $10,000 if paid to spouse, child or other dependent. Accident, disability, health, illness or life proceeds to $15,000, if paid to spouse, child or other dependent. Employee group insurance. Fraternal society benefits.
Personal Property: Furnishings and household goods up to $7,000. Books, pictures and paintings to $1,000. Burial plot up to one acre. Clothing up to $1,000. Motor vehicle and musical instruments up to $7,000. Wedding or engagement rings received prior to marriage.
Tools of Trade: Farming equipment, livestock and feed up to $10,000. Non-farming equipment (not including car) up to $10,000.
Miscellaneous: Alimony. Child support needed for support. Liquor licenses. Business partnership property.
Wages: Exempt according to the following table:
|Annual Earnings ||All Wages Exempt, Except |
|$12,000 - $15,999 ||$400 |
|$16,000 - $23,999 ||$800 |
|$24,000 - $34,999 ||$1,000 |
|$35,000 - $49,999 ||$2,000 |
|+$50,000 ||10% of wages |
Also, the federal exemption standard applies).
Public Benefits: Workers' compensation. Unemployment compensation. AFDC. Local public assistance. Veteran's benefits. Adopted child assistance. Social Security.
Wild Card: $1,000 of any personal property.