Iowa Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside Iowa's Statutes Of Limitations. Iowa phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The Iowa Fair Debt Collection Consumer Practices Guide summarizes Iowa's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
Iowa Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under Iowa’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under Iowa Debt Exemption Law!
Iowa Statutes – Debt Exemptions
Iowa has state opted out of federal bankruptcy exemptions.
Code Annotated § 627.10.
Wages: Iowa Code Annotated §§ 627.6, 642.21, and 537.5105.
Homestead: Iowa Code Annotated §§ 561.1 through .3, 561.20
through .22, and 627.9.
Tangible personal property: Iowa Code Annotated §§ 627.6, .6A.
Benefits, retirement plans, insurance, judgments, and other intangibles:
Iowa Code Annotated 627.6, .6A, .8, and .13. See § 96.15.
Iowa Debt Statutes of Limitation
Your debt may have expired under Iowa’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the Iowa Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
Iowa Debt Statutes of Limitation
Open account: 5 years from last charge, payment, or admission of debt in writing. Unwritten contracts: 5 years from breach.
Written contracts: 10 years from breach.
Demand note: 10 years from date of note.
Judgments: 20 years. However, an action brought on a judgment after nine years but not more than ten years can be brought to renew the judgment.
NOTE: Deficiency judgments on most residential foreclosures, and judgments on mortgage notes are without value two years from date of judgment.
Iowa Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under Iowa’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under Iowa law.
Property of the defendant in the possession of another, or debts due him, may be reached by garnishment. Iowa Code Ann. _ 626.26. When the plaintiff, in writing, directs the sheriff to take the answer of the garnishee, the sheriff shall put to the garnishee the following questions: Are you in any manner indebted to the defendant in this suit, or do you owe the defendant money or property which is not yet due? If so, Statutee the particulars. Have you in your possession or under your control any property, rights, or credits of the said defendants? If so, what is the value of the same? Statutee all particulars. Do you know of any debts owing the said defendant, whether due or not due, or any property, rights, or credits belonging to the defendant and now in the possession or under the control of others?
If so, Statutee the particulars. Do you compensate the defendant in this suit for any personal services whether denominated wages, salary, commission, bonus or otherwise, including periodic payments pursuant to a pension or retirement program? If so, Statutee the amount of the compensation reasonably anticipated to be paid defendant during the calendar year? Iowa Code Ann. _ 642.5.
If the garnishee refuses to answer fully and unequivocally all the foregoing interrogatories, the garnishee shall be notified to appear and answer, and the garnishee may be so required in any event, if the plaintiff so notifies the garnishee. Iowa Code Ann. _ 642.6. Where the garnishee is required to appear at court, unless the garnishee has refused to answer the interrogatories, the garnishee is entitled to the pay and mileage of a witness, and may, in like manner, require advance payment before any liability shall arise for nonattendance. Iowa Code Ann. _ 642.8. A garnishee may, at any time after answer, be \exonerated from further responsibility by paying over to the sheriff the amount owing by the garnishee to the defendant, or so much of said debts and property as is equal to the value of the property to be attached. Iowa Code Ann. _ 642.10.
Judgment against the garnishee shall not be entered until the principal defendant has had ten days notice of the garnishment proceedings, to be served in the same manner as original notices. The garnishee shall Statutee in answer to the service of notice of garnishment whether or not service of notice was delivered to the defendant. The notice required by this section shall contain the full text of _ 630.3A. Iowa Code Ann. _ 642.14.
A notice of garnishment served upon a garnishee is effective without serving another notice until the earliest of the following: The annual maximum permitted to be garnished under _ 642.21 has been withheld. The writ of execution expires. The judgment is satisfied. The garnishee is served with a notice that the garnishment shall cease. A supervised financial organization which is garnished for an account of a defendant, after paying the sheriff any amounts then in the account, shall monitor the account for any additional amounts at least monthly while the garnishment notice is effective. Expiration of the execution does not affect a garnishee's duties and liabilities respecting property already withheld pursuant to the garnishment. Iowa Code Ann. _ 642.22.
Interest Rate at which Judgment Accrue Interest shall be allowed on all money due on judgments and decrees of courts at the rate of ten percent per year, unless a different rate is fixed by the contract on which the judgment or decree is rendered, in which case the judgment or decree shall draw interest at the rate expressed in the contract, not exceeding the maximum applicable rate permitted by the provisions of _ 535.2, which rate must be expressed in the judgment or decree. The interest shall accrue from the date of the commencement of the action. Iowa Code Ann. _ 535.3. Note: Section 668.13 applies to interest on judgments based on a tort liability involving comparative fault. Applicable Forms Iowa Code Ann. _ 630.3A
Iowa (Debt Collector) Call Recording Law
Under Iowa State and Federal Call Recording Laws, you could record the actual phone conversation with a debt collector in your efforts to stop debt collectors from calling! Iowa is a one party consent state, meaning only the permission of one person on the call is necessary to record. YOU ALONE can be considered the one party to give consent, thus you do not need a debt collectors permission to record the phone conversation in the state of Iowa.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.