To file bankruptcy in Iowa, you pick between Chapter 7 and Chapter 13, complete a credit counseling course from an approved agency within 180 days before filing, gather your income and tax records, and submit a petition with detailed schedules to the U.S. Bankruptcy Court for either the Northern or Southern District of Iowa. Iowa has opted out of the federal exemption system, so you’ll protect your property under Iowa Code rather than the federal list, and that single fact shapes much of the preparation.
Choose Between Chapter 7 and Chapter 13
Chapter 7 is liquidation bankruptcy. A trustee reviews your assets, sells anything not protected by Iowa’s exemptions, distributes the proceeds to creditors, and most of your remaining unsecured debt is discharged. A typical Chapter 7 case closes about four months after the petition is filed.1United States Courts. Discharge in Bankruptcy – Bankruptcy Basics
Chapter 13 is a repayment plan lasting three to five years. If your household income is below the Iowa median for your family size, you can propose a three-year plan; at or above the median, the plan generally runs five years.2Office of the Law Revision Counsel. 11 U.S. Code 1325 – Confirmation of Plan Chapter 13 lets you keep property you’d otherwise lose in Chapter 7, and it’s the usual route for catching up on a mortgage in foreclosure because you cure missed payments over the plan.
Chapter 13 has debt caps. As of adjustments effective April 1, 2025, your unsecured debts must be under $526,700 and secured debts under $1,580,125 to qualify.3Federal Register. Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases
Pass the Means Test if You Want Chapter 7
The means test compares your household income from the six months before filing to the Iowa median for your household size. Current medians published by the U.S. Trustee Program are $63,225 for one earner, $84,634 for two, $100,735 for three, and $115,354 for four, with $11,100 added for each additional person.4U.S. Trustee Program/Dept. of Justice. Census Bureau Median Family Income By Family Size
You report the numbers on Official Form 122A-1. If your annualized average monthly income falls below the median for your household size, you generally qualify for Chapter 7 without further analysis. If it’s above, a second calculation subtracts allowed living expenses (drawn from IRS National and Local Standards) from your income to determine whether you have enough left to repay creditors. Too much disposable income creates a “presumption of abuse,” which typically pushes you into Chapter 13.
Complete Credit Counseling and Gather Documents
Within the 180 days before you file, you must complete a credit counseling course from an agency approved by the U.S. Trustee. Without the certificate, your case can be dismissed.5United States Bankruptcy Court. Notice to All Debtors About Prepetition Credit Counseling Requirement Courses generally cost under $50 and can be done online or by phone.
The IRS also requires that returns for the last four tax periods be filed before you proceed under either chapter.6Internal Revenue Service. Declaring Bankruptcy Collect pay stubs covering the 60 days before filing,7United States Courts. Chapter 13 – Bankruptcy Basics along with bank statements, mortgage and vehicle loan statements, recent bills, and records of any property transfers or large payments made in the past two years.
File the Petition and Schedules
Official forms are on the U.S. Courts website.8United States Courts. Bankruptcy Forms The core document is Form 101, the Voluntary Petition for Individuals Filing for Bankruptcy. It’s filed alongside schedules that together give a full picture of your finances:
- Schedule A/B, listing all real estate and personal property you own.
- Schedule C, where you claim property as exempt under Iowa law.
- Schedule D, listing secured creditors like mortgage lenders and auto lenders.
- Schedule E/F, listing unsecured creditors such as credit cards and medical bills.
- Schedule G, for executory contracts and unexpired leases.
- Schedule H, for any codebtors.
- Schedules I and J, showing your current monthly income and expenses.
You’ll also file the Statement of Financial Affairs (Form 107), covering recent payments to creditors, gifts, property transfers, lawsuits, and income sources from the past two years. Every form is signed under penalty of perjury.
Use Iowa’s Exemptions, Not the Federal List
Under Iowa Code 627.10, Iowa filers must use the state’s exemption statutes; the federal exemption list in 11 U.S.C. § 522(d) is not available.9Iowa Legislature. Iowa Code 2026 – Section 627.10 To claim Iowa’s exemptions, you must have been domiciled in the state for at least 730 days before filing. If you moved to Iowa more recently, you may need to use your previous state’s exemptions, and if no state’s list applies, you can fall back on the federal list.10Office of the Law Revision Counsel. 11 USC 522 – Exemptions
Homestead
Iowa’s homestead exemption has no dollar cap. It’s limited by size instead: up to one-half acre within city limits, or up to 40 acres outside them.11Department of Revenue. Tax Credit – Iowa Code Section 561.2 A home that fits within those boundaries is fully protected regardless of value.
Personal Property
Iowa Code 627.6 covers personal property. Key categories include:12Justia Law. Iowa Code Title XV, Chapter 627, Section 627-6 – General Exemptions
- Household goods and furnishings up to $7,000 in total value for an individual filer.
- Motor vehicle equity up to $7,000, with a higher limit for certain married filers.
- Tools of trade up to $10,000 for equipment and instruments used in your profession.
- Wearing apparel and professionally prescribed health aids.
You claim these on Schedule C. Any value above an exemption limit can be sold by a Chapter 7 trustee to pay creditors, so accurate valuations matter.
Where and How to File in Iowa
Iowa has two federal judicial districts, each with its own bankruptcy court. The Northern District of Iowa has clerk’s offices in Cedar Rapids and Sioux City, with additional court locations in Dubuque, Fort Dodge, Mason City, and Waterloo.13United States Bankruptcy Court Northern District of Iowa. Clerk’s Office and Court Locations The Southern District covers the rest of the state, including Des Moines. You file in the district where you live.
The filing fee is $338 for Chapter 7 and $313 for Chapter 13. If you can’t pay in full up front, you can apply to pay in up to four installments across 120 days. In a Chapter 7 case, if your income is below 150 percent of federal poverty guidelines and you can’t pay even in installments, you can ask the court to waive the fee entirely.
Attorneys file electronically through the court’s Electronic Case Filing system.14United States Bankruptcy Court Northern District of Iowa. Before You File Pro Se If you’re filing pro se (without a lawyer), you submit signed documents and payment to the clerk’s office directly. Bring a money order or cashier’s check; personal checks may not be accepted. Once the clerk assigns a case number, your case is open.
What Happens Immediately After You File
The moment your petition is filed, the automatic stay kicks in. It stops most collection activity: creditor calls, demand letters, wage garnishments, lawsuits, and pending foreclosure actions all pause. The stay has limits, though. It doesn’t halt criminal proceedings, and it doesn’t stop actions to establish or collect child support or alimony. Divorce, custody, paternity, and domestic-violence proceedings can continue.15Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay A secured creditor can also ask the court for “relief from stay” to resume collection if, for example, you’ve stopped making payments and their collateral is losing value.
The 341 Meeting of Creditors
About four to six weeks after filing, you’ll attend a 341 Meeting of Creditors, run by the trustee at a federal building or designated location in your division. Bring valid government-issued photo ID and original proof of your Social Security number, such as your Social Security card or a W-2. The trustee puts you under oath and asks about the information in your schedules. Creditors can attend and ask questions but usually don’t. If your paperwork is complete and consistent, the meeting typically runs 10 to 15 minutes. Missing the 341 meeting can get your case dismissed.
The Second Course and Your Discharge
After filing, you must complete a personal financial management course from an approved provider. This is separate from the pre-filing credit counseling. In Chapter 7, the certificate must be filed within 60 days after the first date set for the 341 meeting. In Chapter 13, it must be filed before your last plan payment or before a discharge motion.16Legal Information Institute. Federal Rules of Bankruptcy Procedure Rule 1007 Skip it and the court won’t grant your discharge.
A Chapter 7 discharge usually arrives about four months after filing.1United States Courts. Discharge in Bankruptcy – Bankruptcy Basics A Chapter 13 discharge comes at the end of the three- to five-year plan. During Chapter 13, you must keep filing tax returns and paying current taxes as they come due, or your case can be dismissed.6Internal Revenue Service. Declaring Bankruptcy A bankruptcy filing can remain on your credit report for up to 10 years from the filing date.17Consumer Financial Protection Bureau. How Long Does a Bankruptcy Appear on Credit Reports?
Debts That Bankruptcy Won’t Wipe Out
Not every debt is dischargeable. Federal law preserves several categories through a Chapter 7 discharge:18Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge
- Child support and alimony (domestic support obligations).
- Recent income taxes, and taxes where you filed no return or a fraudulent one.
- Debts obtained through fraud or false statements.
- Government-backed and qualified private student loans, unless you prove “undue hardship” in a separate proceeding.19U.S. Department of Justice. Student Loan Discharge Guidance
- Criminal fines and restitution.
- Debts for death or personal injury caused by driving under the influence.
The undue hardship standard for student loans is hard to meet. Courts typically apply the Brunner test (you can’t maintain a minimal standard of living, the situation is likely to persist, and you’ve made good-faith repayment efforts) or a totality-of-the-circumstances review of similar factors.19U.S. Department of Justice. Student Loan Discharge Guidance
Never Hide Assets or Fudge the Numbers
Every schedule is signed under penalty of perjury. If you conceal assets, undervalue property, or make false statements, the trustee can ask the court to deny your discharge outright, which leaves you liable for all your debts while still losing non-exempt property. Even after discharge, the trustee has up to one year to seek revocation.
Concealing assets or making false statements in a bankruptcy case is also a federal crime under 18 U.S.C. § 152, punishable by a fine, up to five years in prison, or both.20Office of the Law Revision Counsel. 18 U.S. Code 152 – Concealment of Assets; False Oaths and Claims Debts from a case where discharge was denied or revoked for fraud can’t be discharged in any future filing.