Anaya Nolan
Wage garnishment is a method used by creditors to collect debt from an individual's paycheck. Iowa's wage garnishment laws generally follow federal wage garnishment laws, with a few added protections. Iowa law states that creditors are allowed to garnish the lesser amount between the disposable earnings of the debtor and the amount by which the debtor's weekly disposable earnings exceed 30 times the federal hourly minimum wage. In Iowa, individuals have 20 days to respond to a notice of garnishment, and they may file a Motion to Quash Garnishment and Request for Hearing if they believe the garnishment is incorrect. Iowa Legal Aid provides legal assistance to low-income individuals facing garnishment or other civil legal issues.
| Characteristics | Values |
|---|---|
| Definition of garnishment | The process by which a creditor can take money directly from a debtor's bank or employer to pay a court judgment. |
| Iowa's wage garnishment laws | Generally follow federal wage garnishment laws, with a few added protections. |
| Iowa's maximum annual garnishment limits | Don't apply to domestic support obligations, like child support. |
| Disposable earnings | Wages left after an employer has made deductions required by law. |
| Consumer debt | Debt incurred by an individual for primarily personal, family, or household purposes. |
| Iowa's Consumer Code | Allows consumers to seek a reduction in the garnishment amount if the money is needed to support themselves or their family. |
| Iowa's general wage garnishment law | Creditors can garnish disposable earnings. |
| Garnishment reduction | Requires showing a judge evidence about household dependents, necessary expenses, and other reasons that make it difficult to maintain the household without reducing or stopping garnishment. |
| Garnishment of wages or bank accounts | Requires a judgment against the debtor. |
| Notice of garnishment | The sheriff must provide notice within seven days of the start of the garnishment. |
| Response time to notice | 20 days to respond to a notice, only 10 days if it's from a small claims court. |
| Garnishment limits | For consumer debts, creditors can garnish the lesser of 25% of disposable income or the amount exceeding 40 times the federal hourly minimum wage. |
| Priority of creditors | Some creditors have priority over others based on Iowa law. |
| Non-special debts | There is a limit to how much of an individual's wages can be deducted in a single year, but these limits don't apply to child support and alimony. |
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What You'll Learn
Iowa's wage garnishment laws
Disposable earnings refer to those wages left after an employer has made deductions required by law. However, if an individual has consumer debt, creditors are allowed to garnish the lesser of the amount by which their weekly disposable earnings exceed 40 times the federal hourly minimum wage. Generally, consumer debt is incurred by an individual for personal, family, or household purposes.
The Iowa Consumer Code also provides a way for a consumer to seek a reduction in the garnishment amount if the money is needed to support themselves or their family. If an individual's income is below $12,000 per year, up to $250 may be garnished. This amount increases incrementally with the individual's income, and if they earn $50,000 or more per year, no more than 10% of their wages may be garnished.
It is important to note that federal debts, such as IRS debt and student loan debt, have their own rules. The government does not need a court order to garnish wages to collect on these debts. Child support in Iowa is also subject to special rules. If an individual has no other dependents and owes back child support, up to 60% of their wages can be garnished without a court order. However, if they are already supporting a spouse or another child, only up to 50% of their wages can be garnished.
In Iowa, individuals have 20 days to respond to a notice of garnishment by filing and serving an answer or motion with their objections. If they do not respond or appear in court, the creditor can win by default, and the court will issue a judgment. While facing a wage garnishment, individuals may consider consulting an attorney, as Iowa Legal Aid provides legal help to low-income Iowans facing civil legal issues.
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Disposable earnings
In Iowa, disposable earnings refer to the wages left after an employer has made deductions required by law. Iowa's wage garnishment laws generally follow federal wage garnishment laws, but more of an individual's income is protected under specific circumstances.
According to Iowa law, for any given workweek, creditors are allowed to garnish the lesser of:
- The amount by which disposable earnings exceed 30 times the federal hourly minimum wage. (Iowa Code § 642.21)
- If an individual has consumer debt, creditors are allowed to garnish the lesser of the amount by which disposable earnings exceed 40 times the federal hourly minimum wage. (Iowa Code § 537.5105). Consumer debt generally refers to debt incurred for personal, family, or household purposes.
Federal law limits this type of wage garnishment. Up to 50% of disposable earnings may be garnished to pay child support if an individual is currently supporting a spouse or a child who isn't the subject of the order. If an individual is not supporting a spouse or child, up to 60% of their earnings may be taken. An additional 5% may be garnished if the individual is more than 12 weeks in arrears. (15 U.S.C. § 1673). Iowa's maximum annual garnishment limits do not apply to domestic support obligations, such as child support. (Iowa Code § 642.21).
In Iowa, individuals can seek a reduction in the garnishment amount if the money is needed to support themselves or their family. (Iowa Code § 537.5105). To do so, they must file a written application with the Clerk of Court, providing evidence of their household dependents, necessary expenses, and other reasons that make it difficult to maintain their household without a reduction in garnishment. (Iowa Code § 630.3A).
It is important to note that Iowa's wage garnishment laws set a cap on the total amount certain creditors are allowed to garnish during a single calendar year. The specific cap depends on an individual's income level. For example, for incomes between $16,000 and $23,999 per year, the cap is set at $800.
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Creditor requirements
Iowa's wage garnishment laws generally follow federal wage garnishment laws, but with a few added protections. Firstly, creditors cannot garnish wages or bank accounts unless there has been a judgment entered against the debtor. The creditor must first sue the debtor in court and obtain a court judgment stating that the debtor owes them money. The debtor should be given notice of any court judgment. However, they may not be notified of the wage or bank garnishment until it occurs. Within seven days of the start of the garnishment, the sheriff will deliver a notice of garnishment and levy.
If a debtor believes that a garnishment is incorrect or should be stopped, they can file a "Motion to Quash Garnishment and Request for Hearing" (Iowa Court Rule form 3.20). This can be found on the Iowa Judicial Branch website. Alternatively, they can file a written application with the Clerk of Court, requesting relief from garnishment under Iowa Code section 630.3A. There is no court fee for filing this request.
Creditors can garnish the lesser of:
- The amount by which the debtor's weekly disposable earnings exceed 30 times the federal hourly minimum wage (Iowa Code § 642.21).
- If the debtor has consumer debt, the amount by which the debtor's weekly disposable earnings exceed 40 times the federal hourly minimum wage (Iowa Code § 537.5105).
Disposable earnings are those wages left after an employer has made deductions required by law. Consumer debt is debt incurred by an individual for primarily personal, family, or household purposes.
There is also an annual cap on the amount a creditor can garnish, depending on the debtor's income:
- Below $12,000 per year: up to $250 may be garnished.
- Between $12,000 and $15,999 per year: up to $400 may be garnished.
- Between $16,000 and $23,999 per year: up to $800 may be garnished.
- Between $24,000 and $34,999 per year: up to $1,500 may be garnished.
- Between $35,000 and $49,999 per year: up to $2,000 may be garnished.
- $50,000 or more per year: no more than 10% of wages may be garnished. (Iowa Code § 642.21).
If a debtor has income below these protected limits, they can prevent garnishment by filing an "Affidavit of Property Exempt from Execution". This document lists the debtor's protected income and assets and must be truthful. It is then filed with the Sheriff's office and the Clerk of Court in the county where the debtor was sued. A copy must also be sent to the creditor or its attorney.
If federal benefits were deposited into the debtor's account in the previous two months, the bank or credit union must protect either:
- The total amount of protected benefits deposited over the past two months.
- The current balance, whichever is less.
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Consumer debt
In Iowa, garnishment refers to when a creditor takes a consumer's money to pay a court judgment. This can be directly from their bank or employer. Generally, creditors cannot garnish wages or bank accounts unless there has been a judgment entered against the debtor. This means that the creditor must first sue the debtor in court and receive a court judgment stating that the debtor owes them money.
Iowa's wage garnishment laws generally follow federal wage garnishment laws, with a few added protections. For instance, they cap the total amount certain creditors are allowed to garnish during a single calendar year. Under federal law, the garnishment amount for judgment creditors is limited to 25% of the debtor's disposable earnings for that week or the amount by which the disposable earnings for that week exceed 30 times the federal minimum hourly wage, whichever is less. Iowa law also states that creditors are allowed to garnish the lesser of these two amounts. Disposable earnings refer to those wages left after an employer has made deductions required by law.
In the case of consumer debt, creditors are allowed to garnish the lesser of the two amounts: the amount by which the debtor's weekly disposable earnings exceed 40 times the federal hourly minimum wage, or 25% of the debtor's disposable earnings. Consumer debt is generally defined as debt incurred by an individual for personal, family, or household purposes.
The Iowa Consumer Code provides a way for a consumer to seek a reduction in the garnishment amount if the money is needed to support themselves or their family. To do so, the consumer must file a written application with the Clerk of Court, providing evidence of household dependents, necessary expenses, and other reasons why it would be difficult to maintain their household if the garnishment is not reduced or stopped. There is no court fee for filing this request for a hearing.
Additionally, there is an annual cap on how much a creditor can garnish during a calendar year. If a debtor's income is below $12,000 per year, up to $250 may be garnished. This amount increases incrementally with the debtor's income, and for those earning $50,000 or more per year, no more than 10% of their wages may be garnished.
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Seeking a reduction
If you are facing wage garnishment in Iowa, you can seek a reduction in the garnishment amount if the money is needed to support yourself or your family. Iowa's wage garnishment laws generally follow federal wage garnishment laws, but the state offers more protection under specific circumstances.
Firstly, it is important to understand that garnishment is when your money is taken by a creditor from someone other than you—for example, your bank or employer—to pay a court judgment. Your creditor cannot garnish your wages or bank account unless there has been a judgment entered against you. If there is a judgment against you, you should be given notice, and a sheriff will give you a notice of garnishment and levy within seven days of the start of the garnishment. This notice will explain that federal and state laws limit how much money can be taken from you and that you have a right to a hearing to determine how much of your income can be garnished and whether any of your money is exempt from garnishment.
If you are seeking a reduction in the garnishment amount, you must show the judge evidence about your household dependents, necessary expenses, and other reasons that make it difficult to maintain your household unless the garnishment is stopped or reduced. You can file a written application for this hearing with the Clerk of Court under Iowa Code section 630.3A, and there is no court fee for filing this request.
Additionally, Iowa law puts a cap on the total amount each judgment creditor can garnish during a single calendar year, and this cap depends on your income. For example, if your income is below $12,000 per year, up to $250 may be garnished, while if you make between $35,000 and $49,999 per year, up to $2,000 may be garnished. If you make $50,000 or more per year, no more than 10% of your wages may be garnished.
If you need a garnishment reduction, it is recommended that you talk to a lawyer about your options. Iowa Legal Aid provides legal help to low-income Iowans facing legal problems involving civil (non-criminal) legal issues.
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Frequently asked questions
Garnishment is when your money is taken from someone other than you, such as your employer or bank, to pay a court judgment.
Iowa's wage garnishment laws generally follow federal law, but offer enhanced protection for your income in specific circumstances. For consumer debts, creditors can garnish the lesser of 25% of your disposable income or the amount that exceeds 40 times the federal hourly minimum wage. For other debts, creditors can garnish the lesser of 25% of your net wages after deductions or 30 times the federal minimum wage.
You can file a "Motion to Quash Garnishment and Request for Hearing" to seek a reduction in the garnishment amount if the money is needed to support yourself or your family. You must provide evidence of your household dependents, necessary expenses, and other reasons that make it difficult to maintain your household.
