State Debt Laws
Iowa Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Iowa
Iowa (IA) - At a Glance
| State Consumer Protection Law | Iowa Consumer Fraud Act |
| Source | Iowa Code ยง 714H et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $1,000 in bank |
| Homestead Exemption | Unlimited acreage (rural) / $500 value |
Key Protections in Iowa
- FDCPA applies to third-party collectors
- Rural homestead unlimited acreage protection
- Consumer fraud act covers deceptive practices
Wage Garnishment in Iowa
After a court judgment, creditors in Iowa can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Iowa follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Iowa
If a debt collector violates the FDCPA or Iowa Consumer Fraud Act:
- File with the Iowa Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)