Nothing could be further from the truth. Most people who file bankruptcy don’t lose anything.
Every state has exemptions that protect certain kinds of property. Iowa exemption laws are reasonable and liberal. There are exemptions to protect such things as your house, your car, your truck, household goods and furnishings, IRAs, retirement plans, the cash value in life insurance, wages. In those situations where some of your property may not be protected by available exemptions there may be some pre-bankruptcy planning that can help protect the property.