Debt relief in Iowa: collection rules, time limits and your options
Updated November 9, 2026
Iowa at a glance (checked November 2026)
| Iowa | |
|---|---|
| Time limit to sue on credit cards | Usually 5 years |
| Signed written contracts | 10 years |
| Wage garnishment for consumer debt | A yearly cap for each creditor, from $250 to 10% of your pay, based on your income |
| State debt collection law | Iowa Debt Collection Practices Act, which covers original creditors too |
| Who oversees debt collectors | Iowa Attorney General (no license; larger collectors file a yearly notice) |
| Where to complain | Iowa Attorney General's Consumer Protection Division, and the CFPB |
Debt collection rules in Iowa
Iowa's Debt Collection Practices Act (Iowa Code 537.7101 to 537.7103) applies to creditors collecting their own consumer debts as well as to collection agencies. Like the federal law, it bans threats, harassment and false statements about a debt.
Iowa doesn't license debt collectors. Instead, collectors above a set yearly volume must file a notice with the Attorney General every year, and the Attorney General's Consumer Protection Division enforces the rules.
The federal Fair Debt Collection Practices Act applies to third-party collectors as well. They can't call before 8 a.m. or after 9 p.m., must send you a validation notice, and have to stop collecting if you dispute the debt in writing within 30 days, until they verify it.
How long creditors have to sue
- 5 years for credit cards in most Iowa cases. Iowa courts have applied the 5-year limit for unwritten contracts unless the lender can produce a written contract you signed (Iowa Code 614.1(4)).
- 10 years for written contracts (614.1(5)).
The clock usually starts when you default. A signed written admission that you owe the debt, or a written promise to pay it, can restart the clock. Once the time limit has run, a collector can still ask you to pay but can't sue you or threaten to.
What can be garnished in Iowa
Iowa limits how much each creditor can garnish in a year, based on what you expect to earn that year (Iowa Code 642.21):
| Expected yearly earnings | Most one creditor can take in a year |
|---|---|
| Under $12,000 | $250 |
| $12,000 to $15,999 | $400 |
| $16,000 to $23,999 | $800 |
| $24,000 to $34,999 | $1,500 |
| $35,000 to $49,999 | $2,000 |
| $50,000 or more | 10% of expected earnings |
The federal weekly limit applies on top of this, so no more than 25% of your take-home pay can be taken in any week. The caps are per creditor, so two creditors with judgments could each take up to the cap. Child support and taxes follow different rules.
Ways out of debt in Iowa
- Nonprofit credit counseling can roll your cards into one debt management plan, usually at lower rates. Look for an agency accredited by the NFCC or FCAA.
- Know your payoff date: our credit card payoff calculator shows how long your cards will take to clear at the payment you can afford.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Iowa makes you use its own exemption list. Its homestead exemption has no dollar limit, only a limit on the size of the land, so many people keep their home. A bankruptcy attorney can tell you what you would keep.
Where to get help or complain
- Iowa Attorney General, Consumer Protection Division takes complaints about collectors and creditors, or call 515-281-5926 or 888-777-4590.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Iowa Legal Aid gives free civil legal help, including with garnishment; call 800-532-1275.
General information about Iowa law, not legal advice. Checked November 2026.