What Are “Exempt Assets” (Mostasniyat-e-Deyn) in Iranian Law?

A Complete Guide to Assets That Cannot Be Seized for Debt Collection

Introduction

In financial and debt enforcement cases, creditors may ask the court to seize the debtor’s assets to recover their money. However, to protect the basic living needs of the debtor and their family, Iranian law provides a list of assets that cannot be legally seized — known as Mostasniyat-e-Deyn, or “Exempt Assets.”

What Are Exempt Assets?

According to Article 24 of the Law on the Enforcement of Financial Judgments:

“Certain assets necessary for the basic livelihood of the debtor and their dependents are not subject to seizure.”

In other words, exempt assets are those legally protected from being taken away, even if the debtor owes money.

Key Examples of Exempt Assets in Iran

The following items are commonly recognized as exempt — subject to court approval:

One residential home, suitable for the debtor and their family’s needs

️ Essential household items, including refrigerator, stove, carpet, washing machine, etc.

One personal vehicle, appropriate for daily life or the debtor’s occupation

Educational or professional books and study materials

️ Tools and equipment used for earning a living

Essential medications and medical devices

A basic mobile phone for personal use

Clothing and personal necessities for the debtor and dependents

Important Notes About Exempt Assets

The judge of the Enforcement Unit decides whether an asset qualifies as exempt

“Appropriateness” is judged based on the debtor’s lifestyle, family size, and location