What are the Iowa bankruptcy laws?

Answer 1

Bankruptcy is ALWAYS a Federal Courts matter. All are covered under the same Federal Laws. There is a specific set of Federal bankruptcy Courts. The divisions are known by names of the areas they service like "Federal Bankruptcy Court of Western New York" or "FBC of Iowa". Like all District courts, their case history and certain holdings vary slightly, and some items (like real Vs personal property), generally are held to follow the definitions for the local area. There is much on this site about Federal bankruptcy laws. Iowa opted out of federal bankruptcy the state's BK exemption laws apply. Many bankruptcy laws vary from state to state and debtor to debtor. See link for a listing of BK exemptions for the state. See discussion page for some additional explanation. Elections avail to Iowa residents filing in that Federal circuit: Eighth Circuit Court of Appeals Iowa Northern District Court Iowa Southern District Court Exemptions: A debtor is generally permitted an exemption of certain personal or real property in the enforcement of a judgment against him or in a bankruptcy proceeding under state laws or federal laws. Under the laws of Iowa, the homestead of every person is generally exempt from judicial sale. (Iowa Code Section 561.16.) Other general exemptions may include wearing apparel of the debtor and his dependents, household furniture and furnishings, automobile, burying ground, cash value in life insurance polices, pension, and public benefits. Each of the prescribed exemptions may be limited to certain amount in value. (Iowa Code Sections 627.1 et seq.) In a bankruptcy proceeding, although the federal statute permits election of exemptions provided under state laws or federal laws, the State of Iowa specifically precludes such election. (Iowa Code Section 627.10.) This means that a resident of Iowa may only claim exemption of such property and to the extent as permitted under Sections 627.1 et seq. of the Iowa Code even if the exemption provided under the federal Bankruptcy Code may be more beneficial to the debtor.