Iowa debt: a yearly limit on what any creditor can garnish
Iowa protects paychecks in a way almost no other state does: instead of a weekly percentage, it caps how much a single creditor can take in a whole year, starting at $250 for low earners. Its time limits are five years for credit cards and ten for written contracts.
Free check first. If a dispute letter makes sense, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Iowa at a glance
- Written contracts
- 10 years (614.1(5))
- Unwritten, open accounts
- 5 years (614.1(4))
- Credit cards
- Usually 5 years
- Garnishment, earnings under $12,000
- $250 a year per creditor
- Garnishment, over $50,000
- 10% a year per creditor
- State collection rules
- Cover original creditors
General information about Iowa law, with sources below. Not legal advice.
A yearly cap on garnishment
Each judgment creditor can garnish only a capped amount per calendar year, based on your expected annual earnings: $250 under $12,000, $400 under $16,000, $800 under $24,000, $1,500 under $35,000, $2,000 under $50,000, and 10% of earnings above that (Iowa Code 642.21).
The caps apply per creditor per year, so several creditors with judgments could each take up to the cap. The annual caps do not apply to garnishments for court-ordered child or spousal support.
For the federal floor beneath Iowa's rule, and what to do if your pay is already being garnished, see how much of your wages can be garnished.
Five years or ten in Iowa
Ten years for a written contract (Iowa Code 614.1(5)) and five years for an unwritten contract or open account (614.1(4)). Credit card contracts are generally treated as unwritten in Iowa, which points to five years. A medical bill with no signed agreement is an unwritten obligation, which has the five-year period rather than ten (Iowa Code 614.1(4)).
Whether a payment would restart the 5-year limit is covered, state by state, in our page on time-barred debt.
Limits vary a lot between states: by comparison, Michigan sets 6 years and North Dakota sets 6 years for similar debts.
Not sure a Iowa collector is genuine? Check our guide to fake debt collectors, then ask for validation in writing.
National collectors active in Iowa include American Coradius International and Capital Management Services; our guides list their official dispute addresses.
For medical bills in Iowa, see what happens if you do not pay medical bills and whether medical bills affect your credit score.
Medical bills are also unusually negotiable: our guide on how to negotiate medical bills covers itemized bills, errors and charity care, and what happens if a medical bill goes unpaid sets out the stakes.
Sued in Iowa? Do not miss the deadline: read how to get a debt lawsuit dismissed before you respond.
Iowa's collection rules cover the original lender
Iowa's debt collection rules (Iowa Code 537.7101 to 537.7103) reach creditors and their assignees collecting their own debts, not only collection agencies. The federal dispute right applies to collectors: a written dispute inside the validation period makes the collector stop until it mails verification.
Questions people ask about debt in Iowa
How much can be garnished from my wages in Iowa?
Iowa caps each creditor's total per calendar year by your expected earnings: $250 under $12,000, rising to $2,000 under $50,000, and 10% of earnings above that.
What is the statute of limitations on credit card debt in Iowa?
Usually five years, because credit card contracts are generally treated as unwritten under Iowa Code 614.1(4).
When is it ten years in Iowa?
For a written contract under Iowa Code 614.1(5).
Do Iowa's garnishment caps apply to child support?
No. The annual caps do not apply to court-ordered support.
Does Iowa law cover my original lender?
Yes. Iowa's debt collection rules reach creditors collecting their own debts.