Iowa Debt Relief
Iowa credit card debt law provides a Statute of Limitations (SOL) on filing suit for unpaid open-ended debt, lasting 5 years from the date of the first missed payment. Iowa is one of a handful of states that do not rest the SOL based on subsequent partial payments. The time to answer a summons is 30 days, unless otherwise stated on the summons. Because a failure to answer on time results in automatic judgment for the Plaintiff, certified mail should be used to send the answer.
Iowa judgments remain in force for 20 years. They may be renewed if necessary after 9 years. Interest is charged at a rate of 10.875%, which is subject to change. The judgment becomes an automatic lien against the debtor’s real property for 10 years, unless contested by a properly filed homestead exemption.
The creditor may also levy personal property, including that in possession of the third party. Wage garnishments are limited by a sliding scale, based on the debtor’s income. The lesser of the sliding scale or federally prescribed limits will be used. Federal limits allow garnishment of 25% of weekly wages or the earnings that exceed 30 times the minimum hourly wage.
Once a debtor receives a summons, his options become limited; Debt settlement is an option that allows debtors to avoid bankruptcy and find a way to pay the debt on their own terms. By working out an interest-free payment schedule, the debtor can avoid restrictive court orders on how much of the debt must be paid each week.