Disclaimer: I am an information organizer, not an attorney. This is for educational purposes and reflects my personal research and opinions. Always consult with a qualified bankruptcy attorney in Linn County for legal advice.
🏠 Home = Security
🛡️ Shield = Protection
🔋 Battery = Resilience
📜 Law = Knowledge
🕊️ Bird = The Fresh Start
A Guide to Financial Resilience and the "Fresh Start"
Most people do not plan to go bankrupt, yet millions find themselves in this position every year. In our current economy, healthcare costs are the #1 driver of insolvency. This page is designed as a "hub" for those who have been dealt a difficult hand. Whether you are facing a lawsuit, medical debt, or a business failure, understanding the Chapter 7 "Fresh Start" is vital.
"The best time to repair the roof is when the sun is shining." > Knowing these exemptions now allows you to structure your life for maximum resilience before a crisis hits.
Iowa offers one of the strongest homestead protections in the nation. This is a non-dollar denominated exemption, meaning it is based on size rather than market value.
City Property: Up to 1/2 acre is exempt regardless of value.
Rural Property: Up to 40 acres (farm) is exempt.
The Strategy: By paying off your mortgage or investing in permanent home improvements (like a Class 4 roof or energy efficiency), you move "vulnerable" cash into a "protected" asset. As long as you pay the property taxes, the roof over your head is yours forever.
If you are self-employed Iowa law allows an exemption of $10,000 for the tools used in your income-earning activity.
For Tech Professionals: This covers your computers, servers, and specialized diagnostic equipment.
Strategic Upgrade: If you are nearing a filing, it is often wise to ensure your business tools are up-to-date and within this $10,000 limit so you can continue to earn a living post-bankruptcy.
Under Iowa law, certain firearms are exempt from seizure, allowing you to maintain your means of self-defense.
The Exemption: One shotgun and either one rifle or one musket.
Pro-Tip: Since there is no specific dollar cap on these items, high-quality, durable firearms (like an over-under shotgun or a reliable AR-15) are excellent stores of utility and value that remain legally protected.
Wedding & Engagement Rings: Generally exempt without limit if owned for at least two years.
General Jewelry: Up to $2,000 in total value.
Private Libraries: Includes family bibles, portraits, and paintings, up to a value of $1,000. These are the items that make a house a home.
One of the smartest "Advanced Purchases" you can make is for your final expenses.
Exemptions: One burial plot (up to one acre) and prepaid funeral/cremation plans are typically exempt from bankruptcy.
The Benefit: Dealing with these costs now ensures that your family is not burdened later and that your money is used for your benefit rather than being seized by creditors.
Vehicles: You can protect one vehicle with equity up to $7,000. If you drive an older, reliable car, it is likely safe.
Household Goods: Most items in your home (furniture, older appliances, non-smart TVs) have very low resale value and are rarely targeted by trustees.
The "Advanced Purchase" Strategy: Mention that buying bulk non-perishables (MREs, soap, dry goods) is a legal way to "spend down" vulnerable cash into assets that have no resale value to a trustee but huge utility value to you.
Look-Back Periods: Add a small note that "Bankruptcy is a marathon, not a sprint." Moving assets right before filing can be seen as fraud, so long-term planning (months or years in advance) is key.
Retirement Accounts: Clarify that 401(k)s and IRAs are almost entirely protected under federal law, often up to $1.5M+. Never pull money out of a 401(k) to pay a credit card bill if bankruptcy is on the horizon.
Page I setup for where to Donate Things but also could be a good place to get things Free or cheap :)
Page I added for Student Discount
Page for Low Income Resources
State Law page https://www.legis.iowa.gov/docs/ico/section/627.6.pdf
Other things on the list
The OJ Rule :)
Florida homestead protection. The creditors cannot force a sale of the homestead property before and at death. This exemption protected Simpson’s home from being targeted by the Brown and Goldman families pursuant to the wrongful death judgment. This protection had no valuation limit whatsoever. The entire value of the home was protected. Link
Under the Florida Constitution, Homestead exemption accomplishes three types of exemptions:
Exemption from forced sale before and at death
Restrictions on devise and alienation
And exemption from taxation per Art. VII, Section 6 https://grpllaw.com/2017/08/07/950/
What OJ Simpson Can Teach Us About Domestic Asset Protection https://mwpatton.com/asset-protection-articles/oj-simpson-teach-domestic-asset-protection/
https://whhlaw.com/oj-simpson-really-moving-florida-debt-collection/
https://www.sportico.com/law/analysis/2024/o-j-simpsons-legal-legacy-1234775046/
Over under 20 Gag https://cz-usa.com/product/cz-drake/
You can buy a life membership at this sportsmen's club for $200
Bankruptcy: It’s Better Than Nothing https://strikedebt.org/drom/chapter-ten/
https://www.iowalegalaid.org/resource/do-you-really-need-a-bankruptcy
https://www.iowabankruptcyattorney.net/personal-bankruptcy/what-assets-can-i-keep
https://siouxcitylawyers.com/what-happens-to-my-assets-in-chapter-7-bankruptcy/
https://thompsonlawoffice.net/833/iowas-tricky-homestead-exemption-in-bankruptcy/
https://www.calt.iastate.edu/article/iowa-homestead-exemption-construed
https://telpnerlaw.com/bankruptcy-in-iowa-keep-car/
https://www.nolo.com/legal-encyclopedia/retirement-plan-bankruptcy-chapter-7-13-32410.html