Wage Garnishment: Iowa Wage Garnishment Laws

 

Do you want to learn about wage garnishment in Iowa? Henkels & Baker PC has a detailed guide and the resources that you need. Contact us today for guidance.

Wage Garnishment in Iowa: What You Need To Know

If your wages are being garnished in Iowa, you may be feeling overwhelmed and frustrated by your debt. In addition to affecting your financial well-being, wage garnishment can also impact your ability to meet your other obligations. This can cause a significant financial hardship for you.

When your earnings are garnished, you have the right to request a hearing to challenge the garnishment or claim an exemption. You can also negotiate with your creditor to stop the garnishment.

Read on to discover what your rights are regarding wage garnishment in Iowa. For legal representation and advice, call Henkels & Baker, PC.

 

Understanding Wage Garnishment

Wage garnishments, sometimes referred to as wage attachments, are orders that require your employer to withhold certain amounts from your pay and send them directly to one of your creditors. A creditor cannot garnish your wages unless a court has issued a money judgment.

Some creditors, however, don’t need to file a suit to garnish your wages. They have a statutory right to do that regardless of if you file a lawsuit. The most common creditors that don’t need to file a lawsuit to garnish wages are the IRS, state taxing authorities, and child support enforcement agencies. These creditors can garnish wages without a court order or notice to the debtor.

For example, local government and the state of Iowa can garnish your wages to collect unpaid taxes. Also, if you owe a federal student loan, the Department of Education can garnish your wages, which is called administrative garnishment.

It’s the same if you owe child support – the government can garnish your wages without getting a court judgment for that purpose. 

Iowa follows federal law regulations regarding wage garnishment for child support. In other words, up to 50% of your disposable earnings can be garnished to pay child support. Although court orders for child support include an order for automatic withholding of income, the other parent can also get a wage garnishment order from the court if the payer is behind.

However, not all creditors can take that much of your income. Every state has the right to set its own wage garnishment limitations as long as they are less than or equal to the federal restrictions. But bear in mind that Iowa wage garnishment laws are more strict than federal wage garnishment laws.

The amount of money that can be taken from your paycheck depends on:

  • The type of debt you have.
  • The amount of your disposable earnings (what’s left after mandatory deductions).
  • The federal and state exemptions that apply to you.

The Iowa Wage Garnishment Process

Wage garnishment can affect your finances, credit score, and employment. In Iowa, wage garnishment works as follows:

  • A creditor should get a court judgment before they can garnish your wages. This means they have to sue you and prove you owe them money.
  • If the creditor wins the lawsuit, they may request the court to issue a writ of execution. The court orders the sheriff to seize your property or money to satisfy the judgment.
  • The creditor can then request the sheriff to serve a notice of levy and execution on your employer. It instructs them to withhold a certain amount of your wages and send it to the creditor.
  • Your employer should comply with the notice within ten days of receiving it. They will notify you in writing that they will garnish your wages.
  • You can challenge the wage garnishment by filing a motion to quash the execution. You could also file a claim of exemption with the court. However, you need to do so within ten days of receiving the notice from your employer. You can also request a hearing to present your case to the judge.
  • If you do not challenge the wage garnishment or lose the hearing, it will continue until you pay off your debt or until the creditor stops it.

For a free consultation, contact us. We will evaluate your case and the circumstances surrounding your garnishment.

 

How Much of My Income Can Be Garnished by My Creditor?

In Iowa, wage garnishment laws generally follow federal laws. Under certain circumstances, federal law places limits on how much can be taken to protect more of your income. The federal government limit is the lower of:

  • 25% of your disposable income
  • The amount by which your disposable income exceeds 30 times the federal minimum wage. It’s currently at $7.25 per hour.

In the case of consumer debt (debt incurred for personal, family, or household purposes), the state limit is the lower of the following:

  • 25% of your disposable income
  • How much your disposable income exceeds 40 times the federal minimum wage amount.

Iowa law also caps the aggregate amount each creditor can garnish from your income in a calendar year based on your annual income. If you pay child support, you have higher or different limits than the federal or state law. If you owe taxes, the amount that can be garnished depends on:

  • The type of tax
  • The number of dependents you have
  • Your deduction rate

Under Iowa and federal law, basic necessities (minimum income and some property) are protected from judgment creditors. Benefits from Social Security, unemployment, and veterans’ benefits are also protected.

But federal law not only limits the wage garnishment amount, it also offers certain protections. For instance, federal law protects you from being fired if your earnings are subjected to garnishment.  

 

How Can I Stop or Reduce the Wage Garnishment?

There are some steps you can take to reduce or completely stop the garnishment. You can do any of the following:

  • Negotiate a payment plan or a settlement with your creditor. If your creditor agrees, ensure you get the agreement in writing and keep a record of your payments.
  • Challenge the wage garnishment in court. You can file a motion to quash the garnishment and request a hearing. You need to provide evidence to support your claim. You’ll also need to follow the court rules and procedures. Consider hiring a lawyer for legal advice and representation.
  • File for bankruptcy to stop the garnishment fast. When you file for bankruptcy, an automatic stay goes into effect. This prohibits creditors from taking any action to collect a debt without court approval. Therefore, it provides a temporary reprieve from wage garnishments, as well as foreclosure proceedings and creditor harassment.

Speaking with an attorney can help you understand the potential outcomes and legal repercussions of any decisions you make.

How Can a Wage Garnishment Iowa Attorney Help?

If your wages have been garnished, a wage garnishment attorney in Iowa can assist you in many ways. Some of these include:

  • Review your debt situation and advise you on the necessary steps to stop the garnishment. Our team can help you understand your rights and options under the federal and state laws.
  • Represent you in court or at a hearing and challenge the validity or amount of the garnishment. We can also help you claim any exemptions or hardship that may apply to you.
  • Negotiate with your creditor on your behalf and try to reach a settlement or a fair payment plan. Our attorneys can also help you explore alternatives like debt consolidation, settlement, or bankruptcy.
  • Protect you from any harassment by your creditor or their collection agency. Our skilled lawyers can help you challenge any errors or inaccuracies on your credit report.

 

Contact Henkels & Baker, PC Today

Having your earnings garnished can be stressful. Although some creditors have to obtain a court order to garnish your earnings, others have the right to take money directly out of your paycheck.

The creditor or debt collector will garnish your wages until the debt is paid off. But you may be able to take some measures to stop the garnishment or negotiate another way for a debt settlement. In order to do that, you may need help from a skilled debt relief attorney.

Contact Henkels & Baker, PC, a law firm that can help people with their different garnishments and other debt-related issues. We offer free consultations and personalized services.

Client Reviews

Mark F.

5star
Dustin was Excellent – professional, thoughtful, empathetic. Would definitely refer him to others.
1/6/2022

Liz P.

5star
The care and knowledge I received before and during my bankruptcy with your firm was 100% helpful.
11/5/2020