Wage garnishment and exemptions in Iowa

How much can they take from your paycheck in Iowa?

For an ordinary debt such as a credit card or medical bill, after a court judgment.

Deadline and form to protect your money in Iowa

The papers from the court, your employer or your bank list the deadline to claim an exemption. Ask the court how to file the claim: Iowa court self-help (official).

Your paycheck and garnishment in Iowa

Wage limit

Stricter than federal: on top of the federal limit, each judgment creditor can garnish only a yearly maximum tied to your expected income — $250 if you expect to earn under $12,000; $400 ($12,000–$15,999); $800 ($16,000–$23,999); $1,500 ($24,000–$34,999); $2,000 ($35,000–$49,999); 10% of expected earnings at $50,000 or more. Support orders and some other debts are exceptions.

Law

Iowa Code § 642.21

Federal law caps garnishment at 25% of disposable earnings or less (15 U.S.C. 1673(a)); where Iowa's rule protects more, it applies.

In nearby states

• Minnesota: 10–25%
• Wisconsin: Up to 20%
• Illinois: Up to 15%
• Missouri: 25% (federal limit); 10% for head of family

Good to know in Iowa

• Iowa's yearly per-creditor garnishment caps are unusually protective for low and middle incomes (Iowa Code § 642.21).
• An employer may not fire you because your wages were garnished; you have 2 years to sue for lost wages (Iowa Code §§ 642.21(2)(c), 537.5201(5)).
• A collector may not falsely threaten arrest, garnishment or seizure of property, or threaten any action the law does not allow (Iowa Code § 537.7103(1)).

Iowa exemptions for your home, car and belongings

• Iowa protects your homestead (generally up to 1/2 acre in a city or 40 acres elsewhere, Iowa Code § 561.2), one motor vehicle up to $7,000, and household goods and furnishings up to $7,000 total (Iowa Code § 627.6(5), (9)).
• Social Security, unemployment and public assistance benefits are exempt (Iowa Code § 627.6(8)).

What Iowa protects in a bank account

Up to $1,000 total in cash, bank or credit union deposits, or other personal property you choose (Iowa Code § 627.6(14)).

Your bank must automatically protect two months of directly deposited Social Security, SSI or VA benefits (31 CFR 212.5, 212.6). Read the debt lawsuit guide.

When the debt is support, a student loan or taxes

• Child support: the cap is 50% of disposable earnings (60% if you support no other spouse or child), plus 5% when payments are over 12 weeks behind (15 U.S.C. 1673(b)).
• Federal student loans: up to 15% of disposable pay, without a court case, after a written notice at least 30 days ahead (20 U.S.C. 1095a).
• Other debts owed to a federal agency: 15% of disposable pay at most, with the same 30-times-minimum-wage floor as other garnishments (31 CFR 285.11).
• Federal taxes: an IRS levy leaves you an exempt amount based on your standard deduction and dependents; return the Statement of Dependents and Filing Status your employer gives you within 3 days (26 U.S.C. 6334(a)(9), (d); IRS wage levy rules).

The lawsuit comes first in Iowa

If you don't file an answer, the court or clerk can enter a default judgment giving the plaintiff what was asked for (Iowa Code § 631.5; Iowa Judicial Branch small claims page).

Answer the lawsuit by the deadline. In Iowa: District court: file a motion or answer within 20 days after you are served (Iowa R. Civ. P. 1.303(1)).

What to do if you are sued in Iowa

How to claim an exemption in Iowa

1. Watch for deadlines

   Note any deadline to claim exemptions on papers from the court, your employer or your bank; it can be short.

2. Know Iowa's limit

   Iowa's wage rule: Stricter than federal: on top of the federal limit, each judgment creditor can garnish only a yearly maximum tied to your expected income — $250 if you expect to earn under $12,000; $400 ($12,000–$15,999); $800 ($16,000–$23,999); $1,500 ($24,000–$34,999); $2,000 ($35,000–$49,999); 10% of expected earnings at $50,000 or more.

3. Check your bank deposits

   Iowa also protects money in an account: Up to $1,000 total in cash, bank or credit union deposits, or other personal property you choose (Iowa Code § 627.6(14)). Check that the bank protected your direct-deposited benefits (31 CFR 212.6).

4. File the exemption claim

   Get the exemption claim form from the clerk and file it in time. Start with Iowa court self-help (official).

5. Get free help

   Free help in Iowa: Iowa Attorney General – Consumer Protection Division and Iowa Legal Aid (LawHelp network).

Questions about garnishment in Iowa

More for Iowa

• The full Iowa guide
• Statute of limitations in Iowa: 10 years
• Sued by a debt collector in Iowa: 20 days
• Debt collector laws in Iowa: no statewide license
• “Is my debt too old?” checker for Iowa
• Dispute a debt and ask for proof (validation letter)
• Tell a collector to stop or limit contact
• Wage garnishment limits by state
• Guide: sued by a debt collector

Wage garnishment in nearby states