Iowa Laws and Legal Materials

At OVLG we help you understand Iowa's money and debt laws. We give you lots of info about how debt collectors should behave ways to handle big money problems like bankruptcy and laws that protect you when you buy things. We explain these tricky topics in simple ways. This helps you make smart choices about your money.

If you're having trouble with people troubling you about debts thinking about bankruptcy or not sure what your rights are we can help with all of that. Our goal is to make you feel sure about dealing with money problems in Iowa. Remember you have rights when it comes to your money. OVLG is here to help you use those rights and find good solutions to your money troubles.

The FDCPA law in Iowa in regards to debt collections

In Iowa, there's a law called FDCPA that tells debt collectors how to behave. If you can't pay your bills the people you owe might ask someone else to collect the money. But sometimes these collectors do things they're not supposed to. That's why it's good to know about the FDCPA law. It helps you deal with debt collectors.

The law says collectors can't do these things:

Threaten you or hurt your credit score
Talk to other people about your debt unless they're involved
Tell your boss about the debt unless the boss asks
Call you before 8 in the morning or after 9 at night
Ask for checks dated in the future to trick you
Pretend to be someone else to get your info
Use mean words when talking to you about the money you owe

Knowing these rules helps you stand up for yourself if a debt collector is being unfair.

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Iowa Statute of Limitations on Debt

In Iowa, there are rules about how long people can try to sue you for old debts. This is called the Statute of Limitations or SOL. It works like this:

When you borrow money you agree to certain rules. If you don't follow these rules or miss payments the lender might try to sue you or take your stuff. But they only have a certain amount of time to do this.

Here's how long they have for different types of debts in Iowa:

Written contracts: 10 years
Spoken agreements: 5 years
Promissory notes: 5 years
Open accounts: 5 years
Court judgments: 20 years

If the time runs out they can't sue you anymore. You might still owe the money but they can't take you to court over it.

If your debt is older than these time limits you can choose not to pay it. But remember paying old debts can help your credit score. This makes it easier to borrow money in the future if you need to.

Resources for Assistance

Debt Settlement Law in Iowa

Settling debts means asking people you owe to take less money. This can help you pay off what you owe. You can do this yourself or get help from a special company.

If you owe a lot these companies can help. They look at your money talk to the people you owe and try to lower your debts. You pay them one big amount and they share it with the people you owe.

Rules for Debt Settlement in Iowa

The Federal Trade Commission (FTC) made rules to protect you. Here's what the FTC says debt settlement companies in Iowa can't do:

Charge you before they settle a debt
Work without giving you a written agreement
Take your money before you've paid some to the people you owe
Start without telling you how much to save

These FTC rules are there to keep things fair. Be careful when picking a company to help with your debts.

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Wage garnishment in Iowa

Sometimes if you owe money the court might tell your boss to take some of your pay and give it to the people you owe. This is called wage garnishment. Here's what you need to know:

It's a legal way for people to get money you owe them
Your boss has to do it if the court says so
It means you get less money in your paycheck
This can make it harder to pay for things you need

But there are some rules to protect you:

They can't take money from your Social Security checks
They can't take money from your pension (retirement money)

These rules are the same nationwide and in Iowa, too. They help ensure that people still have money to live on even if they owe debts.

Remember if someone is trying to take money from your paycheck it's okay to ask questions and make sure they're following the rules.

Bankruptcy in Iowa

If you're really stuck with debts bankruptcy might help. It's a way to tell the court you can't pay your debts. Here's what to know:

It's a big step - only do it if nothing else works
It can erase many debts
It's more serious than just settling debts

To file for bankruptcy in Iowa:

Talk to a money helper first
- Do this within 6 months before filing
- You can talk by phone online or in person
Pick the right type of bankruptcy
- For Chapter 7 (which erases most debts) you must wait 8 years since your last Chapter 7
Fill out court papers
- Be honest about your money
- Leaving things out can get you in trouble
Get help from a bankruptcy lawyer
- They check your papers
- They make sure you do things on time

Remember bankruptcy is a big deal. It helps with debts but hurts your credit score. Talk to an expert before you decide. They can help you do it right.

Automatic Stay in Iowa

When you file for bankruptcy in Iowa:

Most people have to stop trying to collect money from you right away
- This is called an "automatic stay"
- But some things don't stop like:
  - Criminal cases
  - Child custody cases
  - Collecting child support or alimony
This protection lasts until:
- Your case is closed
- Your case is dismissed
- The court decides whether to clear your debts

There are two main types of bankruptcy:

Chapter 7
- The court picks someone called a trustee
- They look at what you own
- They might sell some of it to pay people you owe
Chapter 13:
- You keep your stuff
- The court makes a plan for you to pay your debts over time

Remember bankruptcy is complicated. It's smart to talk to a lawyer who knows about it before you decide what to do. They can help you choose the right type for your situation.

Check out these resources if you want to learn more

Additional Consumer Law Resources in Iowa

Living Trust Laws in Iowa

In Iowa, you can make a special plan called a revocable living trust. Here's how it works:

You put your things (like money or houses) into this plan
You say who should get your stuff after you die
You can change the plan anytime while you're alive and thinking clearly

Why people like this plan:

It helps give your stuff to others quickly after you die
It keeps your business private
It can save money on legal fees
Your family gets your things faster

The best part is you still control your stuff while you're alive. You can use it change it or even cancel the plan if you want.

This plan helps avoid a long legal process called probate. Probate can take a lot of time and cost money.

Remember, making this kind of plan can be tricky. It's smart to talk to a lawyer who knows about these things in Iowa. They can help you make sure your plan works.

Additional Resources in Iowa

Conclusion

Understanding Iowa's debt management laws is important if you're dealing with money troubles. This includes knowing about ways to combine your debts or settle them for less. It's also good to keep up with services that can help you like professional advice money counseling and legal help. These can make dealing with your debts easier.

Remember laws about money can be tricky. To feel more secure and less worried when handling Iowa's laws and your finances it's a good idea to talk to a lawyer. They can give you specific advice for your situation and help you make the best choices for your money problems.

Updated on: June 26, 2024