⚖️ How to Collect a Judgment in Iowa: Complete Guide

Everything creditors, attorneys, and judgment holders need to know about enforcing and collecting civil judgments in Iowa.

⚖️ Iowa Judgment Collection Overview

Winning a civil judgment in Iowa is only the first step. The court does not automatically collect the money owed to you — that responsibility falls squarely on the judgment creditor. If the debtor does not voluntarily pay, you will need to actively pursue enforcement using the legal tools available under Iowa law.

Iowa provides judgment creditors with a set of collection remedies, including wage garnishment, property liens, bank account levies, and personal property execution. However, the state also recognizes certain debtor protections and exemptions that limit how much and what types of assets can be seized.

In Iowa, a judgment remains enforceable for 20 years from the date of entry. During that time, post-judgment interest accrues at a rate of Variable (set by statute, adjusted periodically) per year (variable rate), which can significantly increase the total amount owed.

This guide covers every aspect of judgment collection in Iowa, from the statutes that govern enforcement to practical strategies for locating debtors and their assets across all 99 Iowa counties.

📜 Key Iowa Statutes and Laws

Iowa judgment collection is governed by several statutes. Understanding these laws helps you identify the correct procedures and avoid costly errors.

🔹 Federal Laws That Also Apply

The Consumer Credit Protection Act (CCPA), 15 U.S.C. § 1673, caps wage garnishment at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Iowa may provide additional protections beyond this federal floor.

⏱️ Judgment Enforcement Period and Renewal

Iowa grants judgment creditors a 20-year enforcement period.

🔹 Renewing a Iowa Judgment

Iowa provides a generous 20-year enforcement period for judgments, and the judgment lien is also effective for 20 years. There is generally no need to renew an Iowa judgment during this period — it remains fully enforceable for the entire 20 years without requiring any additional filings. This is one of the most creditor-friendly enforcement periods in the nation.

To learn more, visit our guide on judgment renewal procedures.

💰 Post-Judgment Interest Rates

Under Iowa Code § 535.3, the post-judgment interest rate in Iowa is Variable (set by statute, adjusted periodically) per year (variable rate).

🔹 How Interest Grows Over Time

🔧 Collection Methods Available in Iowa

Iowa law provides several methods for enforcing a judgment. The most effective approach often combines multiple methods simultaneously.

Collection Method	Best For	Key Statute
💼 Wage Garnishment	Employed debtors with steady income	Iowa Code § 642.1
🏦 Bank Levy	Debtors with known bank accounts	Iowa Code § 642.1
🏠 Real Property Lien	Debtors who own real estate	Iowa Code § 624.23
🚗 Personal Property Execution	Debtors with vehicles, equipment	Iowa Code § 626.1
📋 Post-Judgment Discovery	Finding hidden assets and income	Iowa Rule of Civil Procedure 1.1301-1.1309 (Execution — Discovery)
🔄 Judgment Domestication	Out-of-state judgments	Iowa Code § 626A.1

💼 Wage Garnishment in Iowa

Wage garnishment is one of the most effective collection tools available to Iowa judgment creditors. Once a garnishment order is in place, the debtor’s employer is legally required to withhold a portion of the debtor’s wages each pay period and remit those funds to the judgment creditor.

🔹 How Much Can Be Garnished

Iowa follows the federal CCPA limits for wage garnishment. The maximum garnishment is the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Iowa’s garnishment protections are aligned with the federal floor without providing additional state-level protections.

“Disposable earnings” means the amount remaining after legally required deductions such as federal and state taxes, Social Security, and Medicare. Voluntary deductions like 401(k) contributions, health insurance premiums, and union dues are generally not subtracted when calculating disposable earnings.

🔹 Filing for Wage Garnishment

🏦 Bank Levies and Account Seizures

A bank levy allows a judgment creditor to seize funds directly from the debtor’s bank accounts. This is often the fastest way to collect a significant portion of a judgment.

🔹 Process for a Bank Levy in Iowa

Iowa bank levies are conducted through the garnishment process. The creditor obtains a writ of execution and garnishment, which the sheriff serves on the bank. The bank must freeze the debtor’s accounts and file an answer disclosing balances within the required time. The debtor has the right to claim exemptions for protected funds, including Social Security, veterans’ benefits, and other exempt income.

🔹 Exemptions for Bank Accounts

Certain funds may be exempt under both federal and Iowa law:

✅ Social Security benefits (42 U.S.C. § 407)

✅ Veterans’ benefits

✅ SSI and public assistance

✅ Workers’ compensation benefits

✅ Certain retirement and pension funds

🏠 Property Liens and Real Estate

Recording a judgment lien against the debtor’s real property is a powerful long-term strategy.

🔹 How Judgment Liens Work in Iowa

In Iowa, a judgment from any district court automatically becomes a lien on all real property owned by the debtor in the county where the court is located. To extend the lien to property in other counties, the creditor must file a certified copy of the judgment (transcript of judgment) with the Clerk of Court in each additional county. Iowa has 99 counties, making targeted recording essential.

🔹 Forced Sale of Real Property

If the debtor owns property with equity above the homestead exemption, the creditor can request execution directing the sale at public auction. A real property asset search can provide detailed property information.

🔹 Redemption Rights

Iowa provides a 12-month right of redemption for real property sold at execution sale. However, the debtor can reduce this to 6 months by signing a written waiver of the right to a deficiency judgment. During the redemption period, the debtor retains possession of the property. This creates practical challenges for buyers at execution sales, as they cannot take possession for up to a year.

🚗 Personal Property Execution

Judgment creditors can execute on vehicles, equipment, jewelry, and other tangible assets.

✅ Automobiles, trucks, and recreational vehicles (subject to exemptions)

✅ Equipment, tools, and machinery

✅ Household goods and furnishings (subject to exemptions)

✅ Business inventory and receivables

✅ Investments, stocks, and bonds

A vehicle asset search can identify vehicles registered to the debtor.

🛡️ Iowa Debtor Exemptions

Exemption Category	Protection Amount	Statute
🏠 Homestead	Unlimited in value (up to 1/2 acre urban or 40 acres rural)	Iowa Code § 624.23
👤 Personal Property	$7,000 per person (plus various category exemptions)	Iowa Code § 627.6
💼 Wages	25% of disposable earnings (or amount exceeding 30x minimum wage)	Federal + state law
🪖 Military Benefits	100% exempt	Federal Law
🏥 Workers’ Comp	100% exempt	Iowa Code § 627.13
👴 Public Pensions	100% exempt	Iowa Code § 627.8

📋 Post-Judgment Discovery and Debtor Exams

Post-judgment discovery under Iowa Rule of Civil Procedure 1.1301-1.1309 (Execution — Discovery) allows you to compel the debtor to disclose detailed financial information under oath.

🔹 What You Can Discover

✅ Employment details, income, and employer address

✅ All bank accounts, institutions, and balances

✅ Real property owned in Iowa and any other state

✅ Vehicle titles and registrations

✅ Business ownership interests

✅ Investment and retirement accounts

✅ Recent asset transfers (potential signs of hidden assets)

Learn more in our guide on post-judgment discovery.

🔍 Locating the Debtor and Their Assets

The biggest obstacle in Iowa judgment collection is often finding the debtor and identifying what they own.

🔹 Why Skip Tracing Matters

Professional skip tracing services locate debtors who have moved or are avoiding collection. Our Iowa skip tracing services leverage records from all 99 Iowa counties.

🔹 Asset Discovery Services

✅ Real property holdings

✅ Vehicle registrations

✅ Business interests

✅ Hidden asset investigations

🌟 What Makes Iowa Unique for Judgment Collection

Iowa has several distinctive characteristics that significantly impact judgment collection:

✅ Unlimited homestead exemption — Like Florida and Texas, Iowa protects the debtor’s primary residence regardless of value (subject to acreage limits). This removes the debtor’s most valuable asset from creditor reach in many cases.

✅ 20-year enforcement with no renewal required — Iowa’s 20-year judgment enforcement period requires no periodic renewal, making it one of the most maintenance-free judgment systems in the country. File it and collect for 20 years without worrying about renewal deadlines.

✅ 99 counties — Iowa’s 99 counties require targeted lien recording. The large number of counties, combined with Iowa’s agricultural economy, means debtors may own farmland across multiple counties.

✅ 12-month redemption period — The full year of redemption rights (during which the debtor retains possession) significantly impacts the value and practicality of real property execution sales.

✅ Agricultural considerations — Iowa’s massive agricultural economy means many debtors own farmland, livestock, and farm equipment. Special exemptions and practical considerations apply to agricultural assets.

✅ Non-continuing wage garnishment — Iowa’s garnishment system requires periodic re-filing, adding administrative burden compared to states with continuing garnishment.

✅ Variable interest rate — Iowa’s post-judgment interest rate is set by statute and adjusted periodically, meaning the growth rate of the judgment can change over time.

🔄 Out-of-State Judgment Domestication

If your judgment was obtained in another state and the debtor is now in Iowa, you must domesticate the judgment before enforcing it.

Iowa has adopted the Uniform Enforcement of Foreign Judgments Act. File a certified copy of the foreign judgment with the clerk of the district court in the county where enforcement is sought, along with a required affidavit. The foreign judgment then has the same effect as an Iowa judgment.

See our guide on how to domesticate a judgment.

🏛️ Small Claims Judgment Enforcement

Judgments from Iowa’s Small Claims Court (District Court) (under $6,500) are enforced using the same methods as any other civil judgment. See our guide on enforcing small claims judgments.

💡 Practical Tips for Iowa Judgment Creditors

🔹 Act Quickly After Judgment

File garnishments and liens within the first 30 days to maximize recovery before the debtor can move assets.

🔹 Use Multiple Methods Simultaneously

Combine wage garnishment, property liens, and bank levies for maximum pressure.

🔹 Investigate Before Executing

Invest in a professional asset search to target the most productive assets first.

🔹 Watch for Fraudulent Transfers

Iowa has adopted the Uniform Voidable Transactions Act (Iowa Code § 684.1 et seq.), providing creditors with tools to challenge both actual fraud and constructive fraud transfers. In Iowa’s rural communities, inter-family transfers of farmland and equipment are particularly common and may warrant scrutiny.

Identify suspicious transfers and petition the court to reverse them.

🔹 Consider Bankruptcy Risk

Aggressive collection can push debtors into bankruptcy. Sometimes a negotiated settlement produces a better outcome.

🏠 Understanding Iowa’s Unlimited Homestead Exemption

Iowa’s homestead exemption — unlimited in value with acreage limits (1/2 acre urban, 40 acres rural) — is one of only a few such protections in the nation. For judgment creditors, this creates a familiar challenge: the debtor’s most valuable asset is often completely off-limits.

🔹 Acreage Limits in Practice

While the homestead exemption is unlimited in value, the acreage limits create opportunities in some situations:

✅ Urban debtors — The 1/2 acre limit within city/town limits means that debtors with large urban lots exceeding 1/2 acre may have the excess acreage subject to execution.

✅ Rural debtors — The 40-acre limit outside city/town limits means farmers with homesteads on parcels larger than 40 acres may have the excess acreage vulnerable to creditors. However, identifying exactly which 40 acres constitute the protected homestead can require surveying and legal determination.

✅ Non-primary residences — Investment properties, vacation homes, rental properties, and undeveloped land are NOT protected by the homestead exemption, even if owned by the debtor.

🔹 Strategic Implications

Because the homestead exemption eliminates the debtor’s primary residence from collection, Iowa creditors must focus on other assets. This makes thorough asset searches critical for identifying non-homestead property, business assets, vehicles, and financial accounts that remain available for execution.

🌾 Agricultural Asset Considerations in Iowa

Iowa is one of the nation’s leading agricultural states, and many judgment debtors own farm-related assets. Understanding how Iowa law treats agricultural property is essential for effective collection.

🔹 Farmland Ownership

Iowa farmland is among the most valuable in the nation, with average per-acre values consistently ranking near the top nationally. Debtors who own farmland beyond their protected homestead acreage may have significant vulnerable equity. However, farm families often structure ownership across multiple generations and entities, requiring careful investigation to determine which parcels are actually owned by the judgment debtor.

🔹 Farm Equipment and Livestock

Iowa exempts certain farming equipment necessary for the debtor’s livelihood (under the general personal property and tools of trade exemptions). However, equipment and livestock beyond what is reasonably necessary for the debtor’s farming operations may be subject to execution. The practical challenge is that farm equipment auctions can be seasonal and may not yield fair market value.

🔹 Government Farm Payments

Many Iowa farmers receive federal farm program payments (CRP, ARC, PLC). These payments may be garnishable through appropriate legal process served on the USDA or Farm Service Agency. Consulting with an agricultural law attorney can help determine which farm payments are reachable and which may be exempt.

💲 Collection Costs and Fees in Iowa

✅ Transcript of judgment (lien recording): $25 to $50 per additional county

✅ Writ of execution and garnishment: $10 to $25 filing fee

✅ Sheriff’s service fees: Vary by county

✅ Sheriff’s levy and sale fees: Vary by county and property type

✅ Debtor examination: Filing and service fees

✅ Judgment Satisfaction in Iowa

When the judgment is fully paid, the creditor must file a satisfaction of judgment with the court that entered the judgment and with the Clerk of Court in any additional county where a transcript of judgment was filed. Iowa courts can penalize creditors who fail to promptly satisfy paid judgments.

📅 Typical Iowa Judgment Collection Timeline

🔍 Investigating Fraudulent Transfers in Iowa

Iowa’s Uniform Voidable Transactions Act (Iowa Code § 684.1 et seq.) provides tools to challenge transfers made to avoid collection. In Iowa’s agricultural communities, certain types of transfers are particularly common and may warrant investigation.

🔹 Common Iowa Transfer Patterns

✅ Inter-generational farmland transfers — Family farm transfers from parent to child or between siblings are extremely common in Iowa. While many are legitimate estate planning transactions, transfers occurring shortly before or after a judgment may be fraudulent.

✅ Farm entity restructuring — Creating new LLCs, family limited partnerships, or trusts to hold farmland and equipment, particularly after a judgment has been entered, may constitute fraudulent transfers.

✅ Equipment “sales” to family — Transferring expensive farm equipment (combines, tractors, implements) to family members at below-market prices while continuing to use the equipment.

✅ Homestead equity loading — Making large mortgage paydowns to convert non-exempt cash into exempt homestead equity. While Iowa’s unlimited homestead makes this less necessary than in other states, the timing and circumstances of such payments may still indicate intent to defraud.

📋 Debtor Rights and Protections in Iowa

Iowa is considered one of the more debtor-friendly states in the nation. Beyond the unlimited homestead, Iowa provides several additional protections that creditors must understand:

🔹 Broad Personal Property Exemptions

Iowa protects a generous amount of personal property from execution, including:

✅ Household furnishings, appliances, and clothing — reasonably necessary for the family

✅ One motor vehicle up to $7,000 in equity

✅ Tools of the trade, instruments, and books used in the debtor’s occupation

✅ $1,000 in cash value of any life insurance

✅ Accrued wages for 90 days prior to the filing of a petition (applies in bankruptcy)

🔹 Non-Continuing Garnishment Impact

Iowa’s non-continuing garnishment system requires creditors to re-file for each garnishment period, adding administrative burden and costs. Each filing captures only wages for the pay periods occurring during the answer period (typically 30-60 days). For ongoing collection from wages, the creditor must file multiple sequential garnishments, each requiring a new filing fee and service of process on the employer.

This administrative burden makes it important to supplement wage garnishment with other collection methods, particularly bank levies and execution on non-exempt personal property, for more efficient recovery.

🔹 Negotiation and Settlement Strategies

Iowa’s strong debtor protections — unlimited homestead, generous personal property exemptions, and non-continuing garnishment — can make aggressive enforcement challenging. Many experienced Iowa creditors find that offering reasonable settlement terms produces better overall results than pursuing full enforcement, particularly when the debtor’s primary assets are protected by exemptions. The 20-year enforcement period provides leverage in these negotiations, as the debtor faces two decades of ongoing collection efforts if they refuse to settle.

🌾 Iowa Farmland — A Deep Dive for Creditors

Iowa’s farmland is among the most valuable agricultural real estate in the world, with average values that have appreciated dramatically over the past two decades. Understanding farmland collection is essential for Iowa creditors.

🔹 Current Farmland Values

Iowa farmland values have historically ranged from several thousand to well over $20,000 per acre for prime cropland. A debtor owning even a modest 80-acre parcel could have hundreds of thousands of dollars in equity. However, the unlimited homestead exemption protects the home parcel, and the 40-acre rural homestead limit means up to 40 acres surrounding the home may also be protected.

🔹 Non-Homestead Farmland

Farmland parcels that are separate from the debtor’s homestead — whether inherited land, rented-out parcels, or investment acreage — are not protected by the homestead exemption. These parcels are subject to judgment liens and can be sold at execution sale. Even with the 12-month redemption period, non-homestead Iowa farmland is a prime collection target.

🔹 Cash Rent and Crop Share Income

Debtors who own farmland often receive cash rent from tenants or income through crop-share arrangements. These income streams can be garnished through appropriate legal process. The creditor serves a garnishment on the tenant or buyer, directing them to pay the creditor instead of the debtor. This can be a significant income source — cash rents on Iowa farmland can range from $150 to $350+ per acre annually.

🔹 Farm Sales and Auctions

When Iowa farmland is sold at execution sale, the 12-month redemption period applies. During this period, the debtor retains possession and use of the land (including the right to farm it and keep the crop). This can discourage potential bidders. However, the high value of Iowa farmland means execution sales can still yield substantial proceeds for the creditor, particularly when the debtor has minimal mortgage debt on the parcel.

🔄 Cross-Border Collection with Neighboring States

Iowa borders six states (Minnesota, Wisconsin, Illinois, Missouri, Nebraska, and South Dakota), and many Iowa debtors have connections across state lines. Understanding multi-state collection dynamics is important for Iowa creditors.

🔹 Employment Across State Lines

Many residents of Iowa’s border communities work in neighboring states. The Quad Cities area (Iowa/Illinois), Omaha metro (Iowa/Nebraska), and Sioux City area (Iowa/Nebraska/South Dakota) all have significant cross-border employment. If the debtor works in another state, you may need to file garnishment in the employment state rather than in Iowa.

🔹 Property in Multiple States

Iowa debtors may own real property in neighboring states. To create liens on out-of-state property, you must domesticate the Iowa judgment in each state where the debtor owns property and then record the lien according to that state’s procedures.

🔹 Bank Accounts Across State Lines

Banks in border areas often serve customers from multiple states. An Iowa debtor may bank with a Nebraska or Illinois institution. Iowa garnishment orders can be served on banks wherever they have offices, including out-of-state branches, though practical and jurisdictional issues may arise. Consulting with an attorney experienced in multi-state collection can help navigate these complexities.

💰 Government Payments and Benefits in Iowa

Iowa farmers and residents may receive various government payments that interact with judgment collection in different ways:

✅ Farm program payments (CRP, ARC, PLC) — May be garnishable through proper legal process served on USDA/FSA

✅ Social Security — Generally exempt from garnishment (federal protection)

✅ Veterans’ benefits — Exempt from garnishment (federal protection)

✅ Workers’ compensation — Exempt under Iowa Code § 627.13

✅ Public pensions — Protected under Iowa Code § 627.8

✅ Disaster relief payments — Generally exempt from seizure

❓ Frequently Asked Questions

🔹 How long do I have to collect a judgment in Iowa?

You have 20 years from the date the judgment is entered. Iowa provides a generous 20-year enforcement period for judgments, and the judgment lien is also effective for 20 years. There is generally no need to renew an Iowa judgment during this period — it remains fully enforceable for the entire 20 years without requiring any additional filings. This is one of the most creditor-friendly enforcement periods in the nation.

🔹 What is the post-judgment interest rate in Iowa?

The rate is Variable (set by statute, adjusted periodically) per year (variable rate), under Iowa Code § 535.3.

🔹 Can I garnish wages in Iowa?

Yes. Iowa follows the federal CCPA limits for wage garnishment. The maximum garnishment is the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Iowa’s garnishment protections are aligned with the federal floor without providing additional state-level protections.

🔹 What is the homestead exemption in Iowa?

Iowa has one of the strongest homestead exemptions in the nation. The homestead exemption is unlimited in value, protecting the debtor’s primary residence on up to 1/2 acre within a city/town or up to 40 acres outside a city/town. Like Florida and Texas, Iowa’s unlimited homestead means the debtor’s home — regardless of its market value — is protected from most judgment creditors.

🔹 Can I collect on a judgment from another state?

Yes. Domesticate the judgment in Iowa first. Iowa has adopted the Uniform Enforcement of Foreign Judgments Act. File a certified copy of the foreign judgment with the clerk of the district court in the county where enforcement is sought, along with a required affidavit. The foreign judgment then has the same effect as an Iowa judgment.

🔹 What if the debtor has moved?

Iowa skip tracing can locate debtors who have moved or are avoiding collection.

🔹 How do I find the debtor’s bank accounts?

A professional asset search can identify financial institutions where the debtor holds accounts, enabling targeted bank levies.

🔹 What if the debtor has no assets?

A debtor with no current assets is considered “judgment-proof,” but this status is rarely permanent. People acquire new jobs, property, and inheritances. With 20-year enforcement and renewal options, patience and periodic monitoring through asset searches often pay off.

🔹 What happens if the debtor files for bankruptcy?

A bankruptcy filing triggers an automatic stay halting all collection. Learn more about investigating debtors in bankruptcy.

📞 Get Professional Help

Whether you need to locate a judgment debtor, discover hidden assets, or identify a debtor’s employer for wage garnishment, professional services dramatically improve recovery rates.

Services supporting Iowa judgment collection:

✅ Skip Tracing Services — Locate debtors who have moved or are avoiding collection

✅ Asset Search Services — Identify real property, vehicles, businesses, and financial assets

✅ Employer Locate — Find the debtor’s current employer for wage garnishment

✅ Judgment Debtor Location — Specialized searches for disappeared debtors

✅ Judgment Recovery Services — Comprehensive judgment collection support

This guide was last updated in . Consult with a licensed Iowa attorney for advice specific to your situation.