Iowa Laws on Wage Garnishments, Statute of Limitations on Debt and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: The State of Iowa follows the Federal law on wage garnishments
MAXIMUM INTEREST RATE: Legal: 5% Judgment: 10%
STATUTE OF LIMITATIONS FOR ENFORCEMENT:
Open Account (credit cards): 5 yearsWritten Contract: 10 yearsDomestic Judgment: 10 (renewable)Foreign Judgment: 10 (renewable)BAD CHECK LAW DAMAGES: Three times the check amount up to $500
IOWA BANKRUPTCY PROPERTY EXEMPTIONS (Iowa Code Annotated):
Cannot claim federal exemptions, but can claim federal non-bankruptcy exemptions
The State of Iowa exempts the property and income below from seizure by the bankruptcy court to pay creditors:
Real Estate: Real property or apartment used as residence, unlimited value; property cannot exceed one-half acre in town or city, 40 acres elsewhere [99A.18, 561.2, 561.16]
Personal property: Appliances, furnishings and household goods to $2,000 [627.6(5)]; books, bibles, paintings, pictures and portraits to $1,000 [627.6(3)]; burial plot to one acre [627.6(4)]; clothing and receptacles to hold clothing up to $1,000 [627.6(1)]; wedding or engagement rings up to $1,000 [627.6(1)]; farm equipment, including livestock and feed up to $10,000 [627.6(11)]; any personal property, including cash up to $100 [627.6(13)]; health aids, unlimited amount [627.6(7)]; motor vehicle, musical instruments, and tax refunds up to $5,000 total, with only $1,000 allowed for tax refunds [627.6(9)]; firearms, unlimited amount [627.6(2)]; non-farm business books, equipment and tools up to $10,000 [627.6(10)]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance / Annuities: Accident, disability, health, illness or life proceeds to $15,000, if paid to surviving spouse, child or other dependent [627.6(6)]; employee group insurance policy or proceeds, unlimited amount [509.12]; life insurance proceeds to $10,000 if acquired within two years of filing bankruptcy and if paid to spouse, child or other dependent [627.6(6)]
Pensions / Retirement plans: Firefighters and police officers, payments being received [410.11]; firefighters and police officers, unlimited amount [411.13]; federal government pensions, payments being received [627.8]; public employees, unlimited amount [978.39]; other pensions, payments being received [627.6(8)(e)]
Public Benefits / Entitlements: Social Security, unlimited amount [627.6(8)(a)]; unemployment compensation, unlimited amount [627.6(8)(a)]; veterans' benefits, unlimited amount [627.6(8)(b)]; workers' compensation, unlimited amount [627.13]; adopted child assistance, unlimited amount [627.19]; aid to families with dependent children, unlimited amount [627.6(8)(1)]; disability or illness benefits, unlimited amount [627.6(8)(a)]; local public assistance, unlimited amount [627.6(8)(a)]
Wages: If annual wages are less than $12,000, then $250 for each judgment creditor; if annual wages are $12,000 to $16,000, $400 for each judgment creditor; if annual wages are $16,001 to $24,000, then $800 for each judgment creditor; if annual wages are $24,001 to $35,000, then $1,500 for each judgment creditor; if wages are $25,001 to $50,000, then $2,000 for each judgment creditor; if wages are over $50,000, then 10% of expected earnings [642.21]
Miscellaneous: Alimony or child support, amount needed for support [627.6(8)(d)]; liquor licenses, unlimited amount [123.38]; business partnership property, unlimited amount [410.11]
