Upsolve is a legal aid nonprofit that provides free Chapter 7 bankruptcy attorneys to debtors in Earling, IA that want to erase debt. Upsolve's helped families clear $,, of debt. Earling, Iowa Bankruptcy. 2, families filed bankruptcy using Upsolve. Written by Upsolve Staff Updated October 30, In Chapter 7 bankruptcy, exemptions determine what property you get to keep, whether it be your home, car, pension, personal belongings, or other property. If the property is exempt, you can keep it during and after bankruptcy. If the property is nonexempt, the trustee is . Bankruptcy exemptions play a large role in both Chapter 7 and Chapter 13 bankruptcy. It's important to know what property is exempt in your state. Below you'll find articles on the most common bankruptcy exemptions in each of the 50 states.
If you are considering bankruptcy in Iowa, you should consult an experienced Iowa bankruptcy attorney before filing. Bankruptcy under Chapter 7 is known as a liquidation bankruptcy. At the end of the case, the bankruptcy court discharges the debtor from further liability on most such debts.
Bankruptcy exemptions are determined under state law, although some states allow their residents to use the exemptions listed in the Bankruptcy Code instead. The most important bankruptcy exemptions in Iowa are summarized below. A debtor can only file for Chapter 7 bankruptcy in Iowa if venue is proper there. Venue is proper in Iowa only if the debtor has lived there for most of the six months prior to filing.
Otherwise, he or she will have to wait to file or file in the state where he or she lived for most of that six-month period. Instead, the bankruptcy court will use the exemptions defined by the state where:. Example: Joseph files for Chapter 7 bankruptcy in Iowa on August 1, He has lived in Iowa since January 1, , after having lived in Hawaii his whole life.
Because he has lived in Iowa for the entire six-month period prior to filing, venue is proper there. As mentioned earlier, Iowa has opted out of the federal bankruptcy exemptions defined in the U. They cannot choose to apply the federal exemptions. Some of the most common bankruptcy exemptions in Iowa are summarized below. However, the debtor will be entitled to a portion of the proceeds from that sale equal to the exemption limit.
Example: Consider Margot again, but this time, she owns her car outright. Married couples who jointly file for bankruptcy can usually double their exemptions. That is, each spouse can claim the full amount of exemptions allowed under Iowa law. This ability is subject to some limitations, however, as noted below. However, this exemption is only available for a home of up to a half acre if located in a city, and up to 40 acres otherwise. Iowa provides an exemption for various items of personal property.
Included among the personal property exempted from liquidation are:. This exemption can also be used to exempt state or federal tax refunds as of the date when the debtor files for bankruptcy. Pensions and retirement accounts are exempt under Iowa law. However, contributions made within one year of filing for bankruptcy are not exempt if they exceed the normal and customary amount of contributions. Federal law also protects retirement accounts , even in states that opt out of the federal bankruptcy exemptions.
Chapter 7 bankruptcy cases in southern counties in Iowa are filed with the U. Bankruptcy Court for the Southern District of Iowa. An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted. To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property. When you file bankruptcy in Iowa you may also use certain federal exemptions in addition to your Iowa exemptions. Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors. IOWA