Iowa Collection Laws

What are the collection laws for wage garnishment, levy and lien in Iowa? What is the statute of limitations on Iowa judgments?

I'm writing to find information regarding the laws in Iowa regarding garnishment. I recently went with a credit card consolidation company and all my accounts have gone into collections from no longer making the minimum payments and just paying this consolidation comp. I have been sued by one company and the total due is around $2700 and a judgment has been set. How can they collect that money?? I tried to set up arrangements with them thru the consolidation comp and they will not except any offer I'm able to make. If they garnish my wages how much can they take?? Will I know that they are going to do this? What is a bank levy? Can they do that in Iowa? How much can they take? Any information would be greatly appreciated. I'm just not sure what to do. Do I take all my money out of the bank for fear they'll take it. How long can they continue to try to collect?

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Highlights


  • Iowa wage garnishment rules are intricate.
  • It is possible for a judgment-creditor to levy a bank account in Iowa.

A collection agent or law firm that owns a collection account is a creditor. A creditor has several legal means of collecting a debt. But before the creditor can start, the creditor must go to court to receive a judgment. See the Bills.com resource Served Summons and Complaint to learn more about this process.

The court may decide to grant a judgment to the creditor. A judgment is a declaration by a court that the creditor has the legal right to demand a wage garnishment, a levy on the debtor’s bank accounts, and a lien on the debtor’s property. A creditor that is granted a judgment is called a "judgment-creditor." Which of these tools the creditor will use depends on the circumstances. We discuss each of these remedies below.

Iowa Wage Garnishment

The most common method used by judgment-creditors to enforce judgments is wage garnishment, in which a judgment creditor would contact the debtor’s employer and require the employer to deduct a certain portion of the debtor’s wages each pay period and send the money to the creditor.

n most states, creditors may garnish between 10% and 25% of your wages, with the percentage allowed determined by state law. Garnishment of Social Security benefits or pensions for consumer debt is not allowed under federal or Iowa law (Iowa Title XV Subtitle 3 Chapter 627.6(8), 627.8, 97A.12, 411.13, 410.11), but may be allowed for child support (Iowa Code sections 410.11, 97A.12, 411.13). See the Bills.com Wage Garnishment article to learn more.

In Iowa, wage garnishment is allowed under Iowa Title XV Subtitle 5 Chapter 642, 537.5105 and federal law 15 U.S.C. 1673(a). If the judgment-creditor is aware of the debtor's place of employment, it may seek wage garnishment. Under federal law, the garnishment applies to 25% of the debtor's net take home pay, (i.e. gross pay less statutorily mandated deductions). Garnishment can occur only after the person being garnished has received a 10-day’s notice.

However, under Iowa 642.21, the maximum amount of employee’s earnings that may be garnished during one calendar year is $250 for each judgment creditor (regardless of the number of judgments) except as provided in 252D and 598.22, 598.23, and 627.12 (involve collecting delinquent court-ordered support, which are not subject to annual restrictions), or if earnings are greater than $12,000 for the calendar year, or if the garnishment is for a tax lien:

Income Amount Garnished
Source: Iowa Code § 642.21
$12,000-$15,999 $400
$16,000-$23,999 $800
$24,000-$34,999 $1,500
$35,000-$49,999 $2,000
$50,000 or more Not more than 10% of earnings

Iowa Bank Account Levy

A levy means that the creditor has the right to take whatever money in a debtor’s account and apply the funds to the balance of the judgment. Again, the procedure for levying bank accounts, as well as what amount, if any, a debtor can claim as exempt from the levy, is governed by state law. Many states exempt certain amounts and certain types of funds from bank levies, so a debtor should review his or her state’s laws to find if a bank account can be levied. In some states levy is called attachment or account garnishment. The names may vary but the concept is the same.

Levy is allowed under Iowa Title XV Subtitle 3 Chapter 626, and specifically 626.22, 626.24, and 626.50. General exemptions for bankruptcy, garnishment, attachment, and execution can be found in Chapter 627. Under section 522(n) the maximum aggregate value of assets in individual retirement accounts that is exempted is $1,095,000 ($1,171,650 after April 1, 2010).

If you reside in another state, see the Bills.com Account Levy resource to learn more about the general rules for this remedy.

Lien in Iowa

A lien is an encumbrance — a claim — on a property. For example, if the debtor owns a home, a creditor with a judgment has the right to place a lien on the home, meaning that if the debtor sells or refinance the home, the debtor will be required to pay the judgment out of the proceeds of the sale or refinance. If the amount of the judgment is more than the amount of equity in your home, then the lien may prevent the debtor from selling or refinancing until the debtor can pay off the judgment.

Under Iowa Code 648.1, “Lien; means a charge against or an interest in property to secure payment of a debt or performance of an obligation, and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien.” Iowa allows judgment-creditors to place a lien on property, as per Iowa Code 626.33.

If you reside in another state, see the Bills.com Liens & How to Resolve Them article to learn more.

Iowa Statute of Limitations

Each state or commonwealth has its own statute of limitations on civil matters. Here are some of Iowa’s statutes of limitations for consumer-related issues:

Account/Type Years Statute
Iowa statutes of limitations. Source: Bills.com
Credit card 5 or 10* Gemini Capital Group v. New, No. 1-521/10-1096 (Iowa Ct. App. Sep. 8, 2011)
Spoken contract 5 Iowa Code § 614.1(4)
Written contract 10 Iowa Code § 614.1(5)
Judgment Lien 10 Iowa Code § 624.23
Judgment 9 Iowa Code § 614.3
* Credit card contracts are considered non-written. The Gemini court implied it would find a credit card contract as written if the plaintiff produced a contract signed by the defendant/consumer.

When the statute of limitations clock starts depends on the circumstances and the particular statute. Generally, it starts when the action accrues, which means the date of breach. For credit card debt, this means the date the payment was missed.

ollection agents violate the FDCPA if they file a debt collection lawsuit against a consumer after the statute of limitation expired (Kimber v. Federal Financial Corp. 668 F.Supp. 1480 (1987) and Basile v. Blatt, Hasenmiller, Liebsker & Moore LLC, 632 F. Supp. 2d 842, 845 (2009)). Unscrupulous collection agents sue in hopes the consumer will not know this rule.

Iowa Payday Loan Law

Payday loans are legal in Iowa. It is not a crime to default on a payday loan. See the Iowa Attorney General’s office Informal Advisory # 87 dated February 18, 1999 (PDF) to learn how the attorney general views Iowa Title XIII Subtitle 3 Chapters 535 and 537.7103.

See the Bills.com Payday Loan Laws resource to learn more about payday loans in all states.

Iowa Small Claims Court

To learn how to file a small claims case in Iowa, please see the Iowa Legal Aid Society's Small Claims Court Legal Information page and the Iowa Judicial Branch's Representing Yourself Web page. Consult with a lawyer if your case is complex, or the Iowa civil procedure rules don't make sense to you.

Iowa Debt Collection Practices Act (DCPA) and the Iowa Consumer Credit Code (ICCC)

Collection agents must file a notification with the Iowa attorney general to collect debt in the state. Iowa Debt Collection Practices Act (DCPA) mirrors the federal FDCPA in most respects. It applies to original creditors and collection agents. Like the FDCPA, the DCPA gives consumers a legal remedy (a reason to file a lawsuit) against collection agents and original creditors. However, you cannot be awarded double damages by proving a violation of both the FDCPA and the DCPA.

The Iowa Consumer Credit Code prohibits extortionate and unconscionable debt collection practices by creditors in credit transactions less than $25,000. A credit agreement is unconscionable when:

  • The creditor knew there was no reasonable probability of repayment in full by the debtor
  • The creditor knew the consumer would be unable to receive substantial benefits from the property or services
  • There is a gross disparity between the price paid and the price at which the property or services could be obtained by similarly situated customers
  • The creditor takes advantage of a debtor's inability to understand the language of the agreement

Violation of the DCPA and ICCC are not criminal matters. If you have been victimized by a collection agency, file a report of the violation with the Iowa attorney general and FTC. Consult with a lawyer to discuss filing a civil lawsuit against the collection agent. Some lawyers take these cases on a contingency basis, which means no out-of-pocket costs to you.

Learn more about the Iowa Debt Collection Practices Act at Iowa Code § 537.7101 to 537.7103, and the Iowa Consumer Credit Code at Iowa Code § 537.5107 to 537.5108.

Recommendation

Consult with an Iowa attorney experienced in civil litigation to get precise answers to your questions about liens, levies, and garnishment in Iowa.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

67 Comments

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  • 35x35
    Jan, 2013
    Randy
    I have $600 a month taken out of my check for child support and I only make $1,500 a month after taxes. Can any more money be taken out of my check from a debt collector?
    0 Votes

    • 35x35
      Jan, 2013
      Bill
      I assume you ask about a wage garnishment. You mentioned you have what I assume is a $600 wage garnishment for support. I assume your disposable earnings are $1,500. If my assumptions are correct, you are already at a 40% wage garnishment. The federal maximum judgment-creditors may garnish from a worker's wages are 25%. Therefore, the answer to your question is no, if my three assumptions are correct. If you are an Iowa resident, reread the original article above to learn more about Iowa's consumer-friendly laws for wage garnishment related to judgments. (Note that support-related garnishment rules are not the same as judgment garnishments.)
      0 Votes

  • 35x35
    Jul, 2012
    michele
    I have a judgement against from 2 years ago that I am just getting the paper work on. What I want to know is there a time frame for the company to file the judgement
    0 Votes

    • 35x35
      Jul, 2012
      Bill
      Judgment rules vary from state to state. Consult with a lawyer in your state to learn the rules in your state, and, more importantly, if you have grounds to appeal or ask the court to vacate the ruling that lead to the judgment.
      0 Votes

  • 35x35
    Apr, 2012
    Barb
    I bought a van and the title wasnt clear. I didnt know this when I purchased the van and it broke down twice within 2 days causing it to be towed. I could not insure or get a title and could not get it after it was towed. I was granted a judgement in small claims and the Sheriff's Dept went to the business and tried to collect. They contacted me and said they have been there a number of times unsuccessfully and are going to stop. This place is selling vehicles etc. How do I get my money from them?
    0 Votes

  • 35x35
    Feb, 2012
    Angie
    I live in a small self-managed townhome association. We have several people who refuse to pay their dues and are over $7,000 delinquent. We have gotten judgments on a couple of them. How do we collect? One is retired on Social Security, one may be unemployed (was going thru foreclosure which has since been dismissed). I don't have socials, bank account or employment info. Any suggestions?
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      Consult with an attorney who specializes in debt collection. Most of these attorneys take a percentage of what is collected, as opposed to an up-front fee. It may be the case, however, that some of the debtors have income that can't be garnished, such as the Social Security income and the unemployment. It may be possible to levy a bank account or place a lien on the debtors' property.
      0 Votes

  • 35x35
    Jan, 2012
    Stacey
    I have a company that I was paying over $100 payments a month to that sent me to collections is this legal?
    0 Votes

  • 35x35
    Jan, 2012
    Stacey
    I have a judgement against my ex-husband for credit cards that he owes me for. I am still paying on these credit cards. He has not paid me since September of 2009. He is supposed to be paying me $150 a month. I have a wage garnishment but he jumps jobs and then quits if I find him. He also have child support from another woman. So when he does have a job I don't get anything because it all goes to child support. This judgement is from 2007 and he still owes me around half of the total. Is there any way that I can garnish his taxes or his bank account?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      Collection laws vary from state to state. If you are not located in Iowa then read the Bills.com page collection laws. In general it is possible to obtain bank levies and liens on personal property, as well as wage garnishments. Consult with an attorney experienced in civil litigation to get precise instructions about liens, levies, and garnishment in Iowa.
      0 Votes

  • 35x35
    Jan, 2012
    Sharon
    I am in Iowa. I was served garnishment papers yesterday at work for $777. I had no idea who creditor was so I called number listed on paperwork...was for a collection agency and they said I owed a past judgement against me from 1996 for a dentist bill. The amount for original judgement was $157 but now I owed other costs of $306 and interest for $252 plus court/sheriff's fees of $63 which brings up total to the $777. I have lived in same address and worked at same job the last 11 years and have received no notification of this bill or this collection agency. I know there is a 20 year limition on past judgements in Iowa. After 16 years do I have any rights ? This dentist office closed the same year of judgement and I have not heard one thing about this nor do I remember even a judgement being issued against me. I called courthouse and they had to spend an hour digging out this old file and said that just recently this collection agency notified them and the amount the collection agency told them it was for was $463 and they had no idea what the other "costs" listed were. I am fighting this but don't have money for attorney and only make around $400 week. This will kill me financially if they take $100 a week out of my checks. Any help would be appreciated. Thanks. Sharon
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      Civil procedure law is written to make sure the defendant is notified of a legal action against them. This, apparently, did not happen here. Consult with a lawyer about vacating this judgment.

      Call your county bar association and ask for the names of the organizations that provide no-cost legal services to people with low or no income in your area. Make an appointment with one of the organizations, and bring all of the documents and letters you have regarding the debt to your meeting. The lawyer you meet will advise you accordingly.
      0 Votes

  • 35x35
    Jan, 2012
    Jessica
    I recently received a judgement from a credit card company that I re-rearranged to make $100 a month payments for then my income took a drastic turn from making $3000 a month to now only making $1500 and $1000 of that goes to rent. i have NO $$ to make payments and I told them that- but now they are putting this judgement on me. What can I do and what does this mean??? I would like to pay it off in full this year when i get my taxes back.
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      A judgment against you means that you will be subject to wage garnishments, bank levies and liens on your personal property. It will also mean that you will have a court judgment registered on your credit report. Based on the information you provided, the garnishment will be limited to $800 per calendar year. Your bank accounts are subject to levies, including sums that are deposited from tax refunds and salary. If you receive a lump sum tax refund, then you can speak with the creditor and attempt to negotiate a settlement, including a pay for delete. At the very least, if you reach a settlement the judgment will show as 'satisfied' on your credit report.
      0 Votes

  • 35x35
    Nov, 2011
    Greg
    A Judgement has been ordered against me for $39K+. What happens next? I also am sole proprietor of a bakery with a loss and bank accounts listed under the bakery name and my personal name as well. Can the plaintiff take the monies in that account? My home was purchased under contract by an investor...can the plaintiff attache a lien on this property? (Land records indicate me as owner).
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      I will share some share my thoughts with you, but please don't consider this legal advice.

      After the issuance of the judgment the plaintiff will seek to place levies and liens on your property, including those of your business, which as you noted is a sole proprietorship. I believe that any bank account that has your Social Security number on it is at risk of garnishment.

      I also believe that a lien can be placed on the property that has been sold under contract, while title is still in your name.

      You may consider trying to reach a payment agreement with your creditor, in order to forestall the levy and lien. In any case, you should update your attorney regarding the judgment and discuss how to deal with the situation.
      0 Votes

  • 35x35
    Nov, 2011
    Sarah
    Just received a garnishment for past medical bills effective 11/2/11. My income falls into the $1500 max per year under Section 642.21 Subsection 1. Should my employer just garnish $28.85 per week to get to my per year maximum? On the paper work there is a section that outlines if paid over $386.67 per week they garnish 25%. This would only take 15 weeks to get to the maximun $1500. If that is the case, when would the garnishment start again?
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      Consult with a Iowa lawyer who has consumer law experience regarding your need for legal advice. If you cannot afford a lawyer, call your county bar association and ask for the names of the organizations in your area that provide no-cost legal services to people with low or no income. Make an appointment with one of those organizations, and bring all of the documents regarding the garnishment and debt to your meeting. The lawyer you meet will advise you accordingly.
      0 Votes

  • 35x35
    Nov, 2011
    Anna
    I'm a daycare provider in Iowa. I took a mother to small claims and won my case. She was ordered to pay me a certain amount for a certain time period. After the 2nd month of paying me she didn't show up. I went back to the Clerks office and filed wage garnishment papers. Her employer was served and recently has been terminated of employment. What do I do now that she isn't working. I haven't seen a dime of the garnishment yet either after 4 weeks. HELP
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      There is no simple solution. You may have a legal right to levy her bank account, if you can locate it. Depending on the size of the judgment, you may want to consult with a law firm that specializes in collecting debt. You will pay a fee, but increase your chances of collecting. Some firms work on a contingency fee basis, where you don't pay a fee unless the firm collects on your debt.
      0 Votes

  • 35x35
    Oct, 2011
    michelle
    I have an order in place for child support that often takes 50% of my pay (i am commission-based). A recent small claims judgement was just submitted to my employer. In my paycheck this week, my employer deducted the full child support PLUS the new garnishment leaving me with less than 25% of my disposable income. Is this legal?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Based on my understanding of Iowa and federal wage garnishment law, your employer is garnishing too much from your net income. Consult with a lawyer in your state who has consumer law experience. He or she will review the particular facts in your case and advise you if you qualify for an exemption from the judgment-creditor's garnishment.
      0 Votes

  • 35x35
    Oct, 2011
    Kelly
    If I am made aware that a creditor is going to garnish wages, can I pay the debt off before the garnishment starts?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      The answer to your question is yes.
      0 Votes

    • 35x35
      Oct, 2011
      Kelly
      what can I do if the Creditor is refusing to accept my full payment?
      0 Votes

    • 35x35
      Oct, 2011
      Bill
      See the Bills.com resource If I Pay a Small Amount on My Debt, Can I Be Sued? for a discussion of this issue. Ask any follow up questions you may have on that page.
      0 Votes

  • 35x35
    Sep, 2011
    Larry
    It says in the article that the judgement can be good for 20 years. However, I saw in one particular case (Speer v. Blumer) that after 20 years, a judge extended it further. How is this and under what grounds can they do it?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      Most states allow a judgment-creditor to extend the life of a judgment if the judgment-creditor applies for an extension before the judgment expires.
      0 Votes

  • 35x35
    Aug, 2011
    Gina
    What happens when a garnishment is filled in State A and we work and live in State B?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      The creditor, which I assume is located in State A, would need to take their State A judgment and file it with a State B court. The creditor would then use State B's civil procedure laws to obtain a garnishment order (sometimes called a Earnings Withholding Order), if garnishment is allowed in State B.
      0 Votes

  • 35x35
    Aug, 2011
    Cindy
    I'm a self-employed real estate agent and do not get a regular paycheck. If I make $45,000 this year, the creditor can take $2000 per calendar year, correct? My question is, since I do not get a regular paycheck, how is the garnishment handled? For instance, if my next check is $4000 (my checks vary from $1000 on up) can they take the entire $2000 from the one paycheck since I don't get paid regularly? If not, will they take 25%? I need to know because my next check may get garnished and I'm considering filing for bankruptcy.
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      Are you a W-2 employee or a 1099 contractor? If you are an employee, the employer may garnish and amount based on an estimate of your annual income, or may extrapolate it on a paycheck by paycheck basis. If you are a contractor, then your income may not be garnished because you do not earn a wage.

      Consult with the party that issues checks to you to learn your employment status.
      0 Votes

    • 35x35
      Oct, 2011
      Lisa
      So if you are self-employed/own your own business and are a contractor, they cannot garnish your wages? Can they levy your fees though? If so what percentage?
      0 Votes

    • 35x35
      Nov, 2011
      Bill
      Generally speaking, a 1099 payee is exempt from wage garnishment because a 1099 payment is not a "wage" by definition. A payment under the aegis of a 1099 is not available for wage garnishment.

      A judgment-creditor may use other means to reach a 1099 worker's assets. For example, an account levy, called an account garnishment in some states, or a lien against the judgment-debtor's assets may be available to judgment-creditors. An account levy can be especially devastating because some states have a no exemption amount for what a judgment-creditor can seize from a judgment-debtor's account.
      0 Votes

  • 35x35
    Jul, 2011
    Mark
    I owe $1500 on an outstanding medical/dental bill. A collection agent has obtained the debt and has sued me in small claims court. They named my wife as co-defendent. I am unemployed. Can my wife be held liable for my medical bills? Can they garnish her wages? We have 20 days to respond to the court.
    0 Votes

    • 35x35
      Jul, 2011
      Bill
      Mark, I can't give you legal advice, but can share a few thoughts with you.

      It is possible that your wife can be held responsible for your medical debt, if the doctrine of necessaries applies.

      In many states, statutes or court decisions have established that both spouses are liable for the debts of the other when those debts were incurred to provide "necessaries." Medical care can certainly fall into that category.

      You may want to consult with an attorney, to understand how Iowa views the doctrine of necessaries. If you meet the requirements, you may be able to get free legal advice from Iowa Legal Aid.
      0 Votes

  • 35x35
    Jun, 2011
    Marcy
    I have been garnished for quite some time now, and I just received an Order Condemning Funds. What does this mean???
    0 Votes

    • 35x35
      Jun, 2011
      Bill
      Consult with a lawyer in your state who has experience in consumer law. If you cannot afford a lawyer, call your county bar association, and ask for the name of the organization that provides low- and no-income people in your area with no-cost legal services. Make an appointment with that organization, and bring all of the documents you have regarding the debt and judgment to your meeting. The lawyer you meet will advise you accordingly.
      0 Votes

  • 35x35
    Jun, 2011
    Chris
    If I have a $3,000 judgment from a small claims court case against me, I can be garnished at 25% of my pay of $40,000/year until they reach $2,000? Does my employer have to keep track and stop it after that or do the courts?
    0 Votes

    • 35x35
      Jun, 2011
      Bill
      From the research I have done, it is my experience that the employer keeps track of the amount paid to the creditor, after receiving an initial amount owing from the creditor. Because a post-judgment debt continues to accrue interest, which varies from state to state, the creditor may need to update the employer to receive payment on the interest that is tacked on. You can view the judgment interest rate for your state at the Bills.com page on statute of limitations.

      I suggest that you check with your payroll department to ensure that you both are on the same page. Also, rules may differ from state to state. If you don't get an authoritative answer from your payroll department, consider speaking with an attorney or contacting the state agency that supervises workplace issues. In Iowa, that agency is the Labor Services Division.
      0 Votes

  • 35x35
    May, 2011
    Robert
    I am currently garnished at 50% for Child Support. I have a judgement and just received papers saying that I'm going to be garnished for that a well. Can they do that if 50% of my income is already garnished?
    0 Votes

    • 35x35
      May, 2011
      Bill
      Consult with a lawyer in your state about the child support garnishment. A 50% garnishment of your net wages is higher than what I understand is allowed in any jurisdiction. Editor's note: A 50% wage garnishment for child support is allowed in Iowa. Regarding your question, the federal maximum amount allowed for a judgment garnishment is 25%. If 25% or more of your wages are already being garnished, your employer's payroll department will send a letter to the creditor with a very brief explanation that the maximum that can be garnished is $X, that $Y is already being garnished, and therefore no wages are available for garnishment until the existing order is satisfied.
      0 Votes

  • 35x35
    May, 2011
    Nicole
    Does a creditor have to wait until you've been at you place of employment for a year before they can garnish your wages?
    0 Votes

    • 35x35
      May, 2011
      Bill
      I know of no, "You must wait for X months of employment to pass before wage garnishment can happen" rule.
      0 Votes

  • 35x35
    Mar, 2011
    Ryan
    What happens to the remaining debt once the garnishment is complete?
    0 Votes

    • 35x35
      Mar, 2011
      Bill
      Typically, a wage garnishment is ordered for the entire balance due. It would surprise me that a creditor would ask for a wage garnishment in an amount less than the full balance. In some jurisdictions, the term garnishment is synonymous with levy. If a judgment-creditor gets a levy order, it can submit this to the judgment-debtor's bank or credit union and seize (or freeze) any amount above that state's statutory exemption. In other words, if the statutory exemption amount is $500, and there is $700 in the account, the bank can seize $200 and forward that to the judgment creditor.

      If you are asking about an account levy or garnishment that is for less than the amount owed, in most jurisdictions the judgment-creditor can repeat the process indefinitely until the debt is satisfied.
      0 Votes

    • 35x35
      Apr, 2011
      Jeff
      Hi I have become totally disabled and my only income is SSD can creditors take that from me?? I have a couple of bucks in the bank but have to use it for my meds.
      0 Votes

    • 35x35
      Apr, 2011
      Bill
      Garnishment of Social Security benefits or pensions for consumer debt is not allowed under Iowa or federal law. Reread the answer above for more details on this issue.
      0 Votes

  • 35x35
    Mar, 2011
    Brad
    My bank account was levied in the State of Iowa about 4 years ago. I am in the process of purchasing a home and must get this Judgment taken care of. I received all paperwork at the clerk of court concerning the Judgment. I did see however that the "order condemning funds" was filed on July 26 but my "return of service" is from August 11th. From what I understand, I may have been garnished before my 10 days to appeal. Does this sound correct? Do I have legal recourse to get this judgment vacated?
    0 Votes

    • 35x35
      Mar, 2011
      Bill
      I recommend that you speak with an Iowa attorney, who is familiar with the Iowa laws that govern the garnishment process, to see if you were garnished prematurely and improperly. I can only speculate, but it seems to me that the judgment would not be vacated, even if the garnishment were taken improperly. That fact alone would not seem to invalidate the underlying claim of the judgment. Please clarify this with the attorney. Please report back to us, so we will know what advice you received from the legal expert.
      1 Votes

  • 35x35
    Feb, 2011
    chastity
    what happens if the name on the accounts being garnished from your wages is not yourself and the judgement against you is not even in your legal name past or present? For example a person is living with someone and their last name is completely different from yours and you have never had that last name. i recieved a judgment garnishment for a person with my first name however the last name is my boyfriends, plus all the bills being collected are for my BOYFRIEND. not husband, ive never been married. is this legal? am i truly responsible for this?
    0 Votes

    • 35x35
      Feb, 2011
      Bill
      If I understand your facts correctly, your wages are being garnished for your friend's debt. If you were not a co-signer on the loan, you have no liability for a non-spouse's debt. Consult with an attorney in your state who has experience in civil litigation or consumer law. The judgment against you should be vacated, and the garnishment order reversed.
      0 Votes

  • 35x35
    Dec, 2010
    See the Bills.com resource Fake Debt Collector to learn what to do if you are asked to pay for a debt you do not owe.
    0 Votes

    • 35x35
      Feb, 2011
      dave
      what is the statute of limitations on a judgment for a credit card in Iowa? Does it go by the date of the last credit card transaction or from the time the judgment was entered?
      0 Votes

    • 35x35
      Feb, 2011
      Bill
      Each state has is own statute of limitations on judgments. Under Iowa Code 614, the Statute of limitations on federal or state judgments in Iowa is 20 years. It may be the case that the judgment can be renewed, if the judgment creditor moves to renew it before it expires. The clock on how long a judgment remains enforceable starts running from the date the judgment was entered. If you have a judgment against you for an old debt, you can still try to negotiate a debt settlement with the creditor. If you lack income that can be garnished and assets that the creditor can come after, the creditor may be very willing to accept a settlement offer from you.
      0 Votes

  • 35x35
    Dec, 2010
    Kent
    So if they garnished my wages for a tax lien and I make $24,000-$34,999: then the most they can garnished is $1500 ?
    0 Votes

  • 35x35
    Oct, 2010
    Laura
    I was wondering how you know if the limitation is $400 or $800....does it go off of last years amount that you made in a calendar year or how exactly does that work
    0 Votes

  • 35x35
    Oct, 2010
    Bill
    As I read 641.21 it refers to the present calendar year. Consult with an Iowa attorney to be certain.
    0 Votes

  • 35x35
    Sep, 2010
    Bill
    There is no maximum amount under Iowa law. However, the exempt amount is $1,000 under Iowa 627.6 (14).
    0 Votes

  • 35x35
    Sep, 2010
    Marci
    What is the maximum amount of money the debt collector can take out of your bank account in Iowa?
    0 Votes

    • 35x35
      Jul, 2012
      Peter
      Looks like a thousand dollars is exempt
      0 Votes

  • 35x35
    Jul, 2010
    Bill
    That depends on the nature of the personal property and its value. See Iowa 627.6 General exemptions for the statute that discusses these exemptions.
    0 Votes

  • 35x35
    Jul, 2010
    lee
    Can a judgement creditor in iowa levy on personal property such as furniture, etc?
    2 Votes

  • 35x35
    May, 2010
    Bill
    Under Iowa Chapters 614.1 and 614.5, an open account has a statute of limitations 5 years from the last activity. Other written contracts have a 10-year statute of limitations.
    0 Votes

    • 35x35
      Dec, 2010
      Kim
      I just received a letter from Attorney attempting to collect a debt from a credit card from 8 years ago (August 2002) I honestly don't remember it, but they say its me even though this is the first letter I have received. They said notices were sent to other addresses that I have never lived at. What do I do? Thank you
      4 Votes

  • 35x35
    May, 2010
    Sophia
    What about the statute of limitations for credit card debt in Iowa?
    0 Votes