Iowa is an opt-out state, meaning most bankruptcy filers must use **Iowa**-specific exemptions rather than the federal ones, though certain federal protections (such as Social Security or ERISA retirement) can still apply. Below is a summary of commonly used Iowa exemptions, with relevant statute references. Always verify the latest amounts and interpretations with a qualified attorney or official code, as laws may change.
| Asset / Type of Property | Exemption Description | Statute / Code | Notes |
|---|---|---|---|
| Homestead | Real property or apartment with **unlimited** value, limited to 1/2 acre in town/city or40 acres elsewhere. May record a homestead declaration for clarity. | Iowa Code §§ 499A.18, 561.2, 561.16; 561.4 (declaration) | Proceeds from sale also protected (time-limited). |
| Accident / Disability / Health / Illness / Life Proceeds | Up to \$15,000 paid to surviving spouse, child, or dependent. | Iowa Code § 627.6(6) | |
| Employee Group Insurance Policy | Fully exempt. | Iowa Code § 509.12 (possible reference fix) | |
| Life Insurance Proceeds | Up to \$10,000 if acquired within 2 years before bankruptcy, payable to spouse, child, or dependent. | Iowa Code § 627.6(6) | If policy has an anti-creditor clause, that may also apply (Iowa Code § 508.32). |
| Alimony / Child Support | Exempt to extent needed for support. | Iowa Code § 627.6(8)(d) | |
| Liquor Licenses | Generally exempt from seizure. | Iowa Code § 123.38 | |
| Property of Business Partnership | Exempt from individual partner’s creditors. | Iowa Code § 544.25 | |
| Disabled Firefighters / Police Officers (Payments Received) | Exempt only while payments are being received. | Iowa Code § 410.11 | |
| Federal Government Pension (Payments Received) | Exempt while being disbursed. | Iowa Code § 627.8 | |
| Firefighters / Police Officers | Exempt benefits/pensions. | Iowa Code §§ 411.13, 97A.12 (peace officers) | |
| Public Employees | Exempt retirement benefits. | Iowa Code § 97B.39 | |
| Other Pensions (Needed for Support; Payments Received) | Exempt to extent necessary for support. | Iowa Code § 627.6(8)(e) | |
| Appliances, Furnishings, Household Goods | Up to \$2,000 total value. | Iowa Code § 627.6(5) | |
| Bibles, Books, Portraits, Pictures, Paintings | Up to \$1,000 total. | Iowa Code § 627.6(3) | |
| Burial Plot | Up to 1 acre fully exempt. | Iowa Code § 627.6(4) | |
| Clothing | Up to \$1,000 total + containers to hold clothing. | Iowa Code § 627.6(1) | |
| Health Aids | Fully exempt. | Iowa Code § 627.6(7) | |
| Motor Vehicle, Musical Instruments, Tax Refund | Up to \$5,000 total; no more than \$1,000 from tax refund portion. | Iowa Code § 627.6(9) | Applies to the combined total of car + instruments + portion of tax refund. |
| Rifle, Musket, Shotgun | Fully exempt (one of each, presumably). | Iowa Code § 627.6(2) | |
| Wedding / Engagement Rings | Fully exempt. | Iowa Code § 627.6(1) | |
| Adopted Child Assistance | Fully exempt. | Iowa Code § 627.19 | |
| AFDC / Local Public Assistance / Social Security / Unemployment | Fully exempt. | Iowa Code § 627.6(8)(a) | |
| Veterans’ Benefits | Fully exempt. | Iowa Code § 627.6(8)(b) | |
| Workers’ Compensation | Fully exempt. | Iowa Code § 627.13 | |
| Farming Equipment (Livestock, Feed) | Up to \$10,000 total. Cannot include car (per In re Van Pelt). | Iowa Code § 627.6(11) | In re Van Pelt, 83 B.R. 617 (S.D. Iowa 1987) clarifies no car. |
| Non-Farming Equipment | Tools of trade up to \$10,000 total. Cannot include car (In re Van Pelt). | Iowa Code § 627.6(10) | |
| Wages | Minimum 75% of earned but unpaid wages, including pension payments. Bankruptcy judge may allow more for low-income debtors. | Iowa Code § 642.21 | |
| Wildcard | \$100 of **any** personal property, including cash. | Iowa Code § 627.6(13) |
This list is for general informational purposes only and may not reflect recent legal changes or local court rulings. It does not constitute legal advice. Always consult a licensed Iowa bankruptcy attorney to verify current exemption amounts and applicability to your specific situation.