Debtors can “exempt” or keep certain property in bankruptcy. In Iowa, each debtor can exempt the property listed below. This isn’t a complete list so other property may be exempt also and you may be able to keep other property by paying its value to the trustee. In most cases debtors lose no property when they file bankruptcy.
- A homestead
- One vehicle with equity of $7000
- Household goods and clothing valued at $7000
- Most pension and retirement plans
- Jewelry valued at $2000
- Public assistance benefits like Social Security, the Earned Income Tax Credit and unemployment benefits
- Farm equipment or tools of the trade valued at $10,000
- Whole life insurance cash value of $10,000
- Any other property valued at up to $1,000
