• Bankruptcy is a method for people in some degree of financial trouble to start over new with a clean slate. If you've been planning on filing for bankruptcy in Iowa, think of it simply as a proven system for getting you the fresh start you need. Don't forget that these laws were designed to help you, so there isn't much point to viewing them in a negative way. This page shows you How to File for Iowa Bankruptcy.

  • Disclaimer

    The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

  • Introduction

    Bankruptcy filings take place in federal court due to the fact that bankruptcy falls under the jurisdiction of federal law in all 50 states across the US. However, Iowa state law can still have a role to play with respect to certain areas of the process, like when determining which assets are exempt from forced liquidation for example.

  • Step 1: What is Chapter 7 Bankruptcy?

    Chapter 7 bankruptcy is a legal process designed with the intent to free an individual facing financial struggles from unsecured debt obligations. However, Chapter 7 does not wipe out secured debt like mortgages or car payments because those loans are backed by collateral. This type of bankruptcy is also known as straight bankruptcy or liquidation bankruptcy. Some people have concerns about this type of filing due to what they've been told about asset sales, but forced liquidation can often be avoided if you are able to pass a means test. Also, remember that a Chapter 13 restructuring is always available as a second option if you decide that Chapter 7 isn't going to be of value for you.

  • Step 2: The Chapter 7 Income Test

    To pass the Chapter 7 Bankruptcy means test, you'll need to demonstrate that your total income is less than Iowa's state median. This figure is measured by the Census Bureau and varies depending on the size of your household. The following maximum incomes apply in cases filed after March 15, 2009http://research.lawyers.com/Iowa/Bankruptcy-in-Iowa.html:

    1. Single individual: $41,381
    2. Two person family: $54,628
    3. Three person family: $63,888
    4. Four person family: $74,047
    5. Five+ person family: $74,047 plus $6,900 for each extra individual over four

  • Step 3: Chapter 7 Exemptions for Iowa

    Once you've determined that you are eligible to file for chapter 7, it's extremely vital that you enlist the help of a bankruptcy attorney so they can cover with you all of the exemptions you have a right to claim. Though your lawyer has the experience necessary to decide on the best strategy, here are a just a few of the allowable exemptions in Iowa:http://research.lawyers.com/Iowa/Bankruptcy-in-Iowa.html

    1. Alimony, support or separate maintenance
    2. Tax refund and accrued wages to $1,000
    3. Farm implements, livestock and feed to $10,000
    4. Tools of the trade for non-farmer to $10,000
    5. 75% of disposable earnings
    6. Assistance for adopted, hard-to-place homeless children
    7. Household furnishings, clothing, goods, musical instruments, appliances and other personal property to $7,000
    8. Health or disability insurance to $15,000
    9. One motor vehicle to $7,000

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