Wage garnishment in Iowa

Most taken from one paycheck

Federal cap: 25% of take-home pay or the part above $217.50 a weeksource

Yearly cap per creditor, earnings under $12,000

$250 a yearsource

Yearly cap per creditor, $35,000 to $49,999

$2,000 a yearsource

Yearly cap per creditor, $50,000 or more

10% of expected earningssource

Iowa’s yearly limit on wage garnishment

Under Iowa Code section 642.21, each judgment creditor can garnish only so much of your earnings in one calendar year. The cap depends on what you are reasonably expected to earn that year, based on the answers your employer gives the sheriff:

• 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 cap is per creditor. Two different creditors with judgments can each reach their own cap. Child support and some other family support orders are outside these limits.

How much can be garnished from my paycheck in Iowa each payday?

Per paycheck, Iowa follows the federal rule. A creditor can take up to 25% of your disposable earnings (pay after the deductions the law requires) or the amount above $217.50 a week, whichever is less. The U.S. Department of Labor explains this in its wage garnishment fact sheet.

Here is how the two limits work together. Say you expect to earn $30,000 this year and take home $480 a week. The weekly limit is $120. But that creditor can collect only $1,500 for the whole year. At $120 a week, it reaches $1,500 in about 13 weeks and then that garnishment ends for the rest of the year.

The notice your employer must give you

When wages are garnished, section 642.14B requires your employer to hand you a notice of garnishment with your pay or in place of it. It can come in person, by mail or electronically. A judgment against your employer cannot be entered until you get this notice.

The notice must say you can claim money as exempt and ask for a timely hearing before a judge. It must also warn that if you do not file a motion or other pleading to claim an exemption, you may lose that right. It also explains the yearly and per-paycheck limits. Call and a garnishment specialist reads the notice with you and checks the yearly cap.

When an Iowa garnishment ends

One notice of garnishment keeps working without a new one being served. Under section 642.22, it stops at the earliest of these:

1. The yearly maximum for that creditor has been withheld.
2. The writ of execution expires.
3. The judgment is paid.
4. The sheriff releases it at the creditor’s request.

Iowa also bars your employer from firing you because your earnings were garnished for a debt and from withholding more than the law allows.