This bill amends various sections of Iowa's bankruptcy and personal property exemption laws, expanding eligibility for exemptions to include any debtor to whom the law of the state applies on the date a bankruptcy petition is filed. Specifically, it modifies the homestead exemption to cover these debtors and adjusts personal property exemption limits for items such as wedding rings, jewelry, household goods, life insurance policies, and motor vehicles. The bill also removes the requirement that a debtor engaged in farming must not delay the enforcement of a deficiency judgment to qualify for certain exemptions.

Additionally, the bill introduces a mechanism for adjusting exemption amounts every three years based on changes in the consumer price index, starting April 1, 2028. It mandates the Department of Revenue to publish these adjusted amounts and adopt rules for their implementation. The bill further expands pension-related exemptions by including debtors under the same provisions and removes language regarding whether a pensioner is the head of a family in relation to these exemptions. The bill is effective immediately upon enactment.

Statutes affected:
Introduced: 561.16, 627.6, 654.6, 627.9