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Iowa wage garnishment and liens

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As I posted in another thread, we are being sued by a JDB.  Can anyone tell me what will happen in Iowa if we fight this, but lose?  Can my husband's wages be garnished and how will that work?  How much more are we likely to have to pay in court costs?  If they put a lien on our home, how does that work?  Thanks for any replies. 

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Wage garnishment and bank levy are both possible.  With wage garnishment they get an order from the court and send it to his employer.  25% of his wages above the federal poverty level will be garnished each payday, sent to the court, and held until the entire amount of the judgment owed is attained then it is sent to the creditor.  If they get an order for bank levy they can seize all non-exempt funds in the account towards the judgment amount as well.  


So for example:  if his take home pay bi-weekly after taxes and deductions is $1200 then $300 will be withheld for wage garnishment until the total amount of the garnishment order is reached.  


If they do a lien it is simply placed on the title until the debt is paid.  That means if you need to refinance or want to sell you have to cure the lien first so as to have a clear title.  If they do wage garnishment or bank levy and the debt is paid make sure to get a release of lien from them.   They often over look this and can try to extort more money for the release.


As for court costs they are typically a few hundred dollars and attorney fees run between $800 and $1200.  

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This is how garnishment works in Iowa.  The amount is based on yearly income.  


When dealing with wage garnishments, Iowa follows the guidelines of the federal Consumer Credit
Protection Act, which limits garnishments to 25% of the debtor’s weekly disposable earnings or the
amount which exceeds 30 times the Federal minimum hourly wage, whichever is less. Additionally, Iowa
placed annual limits based on the level of expected earnings. These exemption levels are stated in Iowa
Code section 642.21.
• For employees with expected earning less than $12,000, the maximum amount that may be
garnished during any one calendar year is $250.
• If the expected earnings are more than $12,000 but less than $16,000, the amount is $400.
• If the expected earnings are more than $16,000 but less than $24,000, the amount is $800.
• If the expected earnings are more than $24,000 but less than $35,000, the amount is $1,500.
• If the expected earnings are more than $35,000 but less than $50,000, the amount is $2,000. • If the expected earnings are more than $50,000, no more than ten percent of the employee’s
expected earnings may be garnished. 
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