Iowa debt statute of limitations

Iowa limitation periods by type of debt

Unwritten/open-account debt is 5 years (§ 614.1(4)); written contracts 10 years (§ 614.1(5)).

What the Iowa statute says

“those founded on written contracts, or on judgments of any courts except those provided for in subsection 6, and those brought for the recovery of real property, within ten years.”
Iowa Code § 614.1(5)(a)

“Those founded on unwritten contracts, those brought for injuries to property, or for relief on the ground of fraud in cases heretofore solely cognizable in a court of chancery, and all other actions not otherwise provided for in this respect, within five years”
Iowa Code § 614.1(4)

Does paying restart the clock in Iowa?

A signed written admission that the debt is unpaid, or a new written promise to pay, revives it (Iowa Code § 614.11).

“Causes of action founded on contract are revived by an admission in writing, signed by the party to be charged, that the debt is unpaid, or by a like new promise to pay the same.”
Iowa Code § 614.11

Iowa’s own debt collection law

The Iowa Debt Collection Practices Act (Iowa Code ch. 537, art. 7, §§ 537.7101–537.7103) regulates debt collection on consumer credit debts by creditors and collectors alike.

““Debt collector” means a person engaging, directly or indirectly, in debt collection, whether for the person, the person’s employer, or others, and includes a person who sells, or offers to sell, forms represented to be a collection system, device, or scheme, intended to be used to collect debts.”
Iowa Code § 537.7102

If a creditor wins a judgment in Iowa

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different Iowa rules take over.

How long a judgment lasts

In Iowa, an action founded on a judgment of a court of record must be brought within twenty years (no time limit for child support, spousal support, or marital-asset distribution judgments); this statute sets the limitation period for suing on the judgment and does not by itself describe lien or execution periods.

“Judgments of courts of record. Those founded on a judgment of a court of record, whether of this or of any other of the United States, or of the federal courts of the United States, within twenty years”
Iowa Code § 614.1(6)

Wage garnishment

Iowa applies the federal Consumer Credit Protection Act limits and also caps total wage garnishment per judgment creditor per calendar year on a sliding scale: $250 if expected annual earnings are under $12,000, rising to $2,000 for earnings under $50,000, and 10% of expected earnings at $50,000 or more (support orders excepted).

“The maximum amount of an employee’s earnings which may be garnished during any one calendar year is two hundred fifty dollars for each judgment creditor, except as provided in chapter 252D and sections 598.22, 598.23, and 627.12, or when those earnings are reasonably expected to be in excess of twelve thousand dollars for that calendar year”
Iowa Code § 642.21(1)

Money in a bank account

An Iowa resident debtor may exempt up to $1,000 in the aggregate of cash on hand, bank deposits, credit union share drafts, or other deposits; the same $1,000 cap also covers any other personal property claimed under this subsection, so it is not a bank-only allowance.

“The debtor’s interest, not to exceed one thousand dollars in the aggregate, in any cash on hand, bank deposits, credit union share drafts, or other deposits, wherever situated, or in any other personal property whether otherwise exempt or not under this chapter.”
Iowa Code § 627.6(14)

Small claims court

In Iowa, a civil action for a money judgment of $6,500 or less (exclusive of interest and costs) commenced on or after July 1, 2018 is a small claim.

“A civil action for a money judgment where the amount in controversy is six thousand five hundred dollars or less for actions commenced on or after July 1, 2018, exclusive of interest and costs.”
Iowa Code § 631.1(1)(b)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how Iowa treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in Iowa?

5 years for credit-card debt and 10 years on a written contract, under Iowa Code § 614.1. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Iowa?

A signed written admission that the debt is unpaid, or a new written promise to pay, revives it (Iowa Code § 614.11).

Does Iowa have its own debt collection law?

The Iowa Debt Collection Practices Act (Iowa Code ch. 537, art. 7, §§ 537.7101–537.7103) regulates debt collection on consumer credit debts by creditors and collectors alike. (Iowa Code § 537.7102).

How long does a court judgment last in Iowa?

In Iowa, an action founded on a judgment of a court of record must be brought within twenty years (no time limit for child support, spousal support, or marital-asset distribution judgments); this statute sets the limitation period for suing on the judgment and does not by itself describe lien or execution periods. (Iowa Code § 614.1(6)).

How much of my pay can be garnished in Iowa?

Iowa applies the federal Consumer Credit Protection Act limits and also caps total wage garnishment per judgment creditor per calendar year on a sliding scale: $250 if expected annual earnings are under $12,000, rising to $2,000 for earnings under $50,000, and 10% of expected earnings at $50,000 or more (support orders excepted). (Iowa Code § 642.21(1)).

What if I am sued on an old debt in Iowa?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.