Can debt collectors garnish wages in Iowa?

Iowa law limits the amount that a creditor can garnish (take) from your wages for repayment of debts. For the most part, subject to Iowa’s annual limits, creditors with judgments can take only 25% of your net wages after required deductions.

How long can debt collectors try to collect in Iowa?

For some debts incurred through written contracts, including mortgages, collectors may pursue the money for 10 years under Iowa law. Iowa debts incurred through oral contracts, in which the terms are not specified and signed in a written contract, generally have a five-year statute of limitations.

Can a creditor garnish your paycheck in Iowa?

Iowa law limits the amount that a creditor can garnish (take) from your wages for repayment of debts. To determine how much of your paycheck can be garnished, Iowa follows the wage garnishment limits found in federal wage garnishment laws (also called wage attachments).

Can a creditor get a wage garnishment order?

Most creditors cannot get a wage garnishment order until they have first obtained a court judgment stating that you owe the creditor money. For example, if you are behind on credit card payments or owe a doctor’s bill, those creditors cannot garnish your wages (unless they sue you and get a judgment).

What to do if credit card company garnish your wages?

get a court order directing your employer to deduct funds. If you’re delinquent in your credit card payments, you can take steps to avoid a garnishment. Learn when a credit card company or debt collectors can garnish your wages to collect on delinquent credit card debt, and what you can do to protect your paycheck.

Can a creditor take more than 25% of your wages in Iowa?

For the most part, subject to Iowa’s annual limits, creditors with judgments can take only 25% of your net wages after required deductions. However, for a few types of debts, creditors can take more. Read on to learn about wage garnishment law in Iowa.