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(The meaning of ?exempt? and ?non-exempt? property.)
Under the law, there are many items of property which are ?exempt from execution.? To protect exempt property, the debtor must object and file a claim for exemption. Only non-exempt property can be executed upon but the debtor must object in order to keep or get back exempt items. See the Notice of Levy and Opportunity for Hearing form.
A list of exempt property follows. It is not a complete list, but includes most of the important exemptions. Additionally, some of the exemptions below and on the next page are provided for each debtor. If a husband and wife are both liable on a debt and own property jointly, they may each claim a full exemption. The Iowa Legal Aid booklet Bankruptcy contains a more thorough explanation of what property is exempt. For a complete list of exemptions, see a lawyer or check the Code of Iowa, Chapter 627.
| PROPERTY |
DOLLAR ($)LIMITATIONS |
| Homestead (house and surrounding land used and occupied by the debtor and his/her family) NOTE: This exemption does not apply if you have given a voluntary mortgage of the house to a bank, credit union, or other party and the bank, credit union, or other party holding the mortgage is foreclosing |
Not to exceed one-half acre within a city or 40 acres outside a city no dollar limit imposed. Also not more than $125,000 acquired in past 3 years and 4 months. |
| All clothing and suitcases of the debtor or debtor?s dependents kept for actual use, household furnishings, musical instruments and household goods which include cameras, tvs and compact disc players |
$7,000 |
| Books, portraits, and paintings |
$1,000 |
| Burial plot not exceeding one acre |
None |
| Household furnishings and goods and appliances actually used by the household of the debtor |
$2,000 |
| Professionally prescribed health aids for the debtor or a dependent of the debtor |
None |
|
One motor vehicle |
Not to exceed $7,000 in value (Use current resale value, in other words, not what you paid but what you would get by selling the property now.) |
| If not a farmer, the tools of trade of the debtor or dependent |
$10,000
|
| If a farmer, any combination of implement, equipment, livestock, and feed for livestock |
$10,000
|
| A wedding or engagement ring owned and received by the debtor on or before the date of marriage |
None |
| Cash or bank deposits |
$1,000 |
| Cash value of a life insurance policy if beneficiary is spouse or dependent |
$10,000 with certain limitations |
| Social Security, unemployment, public assistance, veterans, or disability benefits |
None |
| Alimony and support |
To the extent reasonably necessary for support of debtor and dependents
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The law requires that a notice be given by the Sheriff of the fact that some property is exempt. Here is the form you should use.
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