Opinion ID: 2116338
Heading Depth: 1
Heading Rank: 3

Heading: Statutory Restrictions on Garnishment.

Text: The federal act restricts the amount of earnings in a pay period which may be subject to garnishment. [1] Generally, the maximum amount of aggregate disposable earnings of an individual for any workweek subject to garnishment may not exceed twenty-five percent of the disposable earnings for that week. 15 U.S.C. § 1673(a). However, the twenty-five percent restriction does not apply in three situations, including cases involving an order for the support of any person. [2] Id. § 1673(b)(1)(A). When an order for the support of any person is involved, up to sixty-five percent of an individual's disposable earnings may be garnished where the individual is not already supporting a spouse or dependent child. [3] Id. § 1673(b)(2). Iowa adopts the federal pay period restrictions. [4] However, it provides additional protections for debtors by further restricting the maximum amount of earnings which may be garnished in each calendar year. [5] Generally, the total amount of earnings any one creditor may garnish in any calendar year is governed by a sliding scale. The scale is based upon the amount of earnings a debtor expects to receive in the year. Iowa Code § 642.21. The threshold amount of wages available for garnishment is $250 for debtors who expect to earn less than $12,000 annually and increases up to a maximum level of ten percent of earnings for employees who expect to earn $50,000 or more each year. Id. The statutory caps, however, do not apply to garnishment based on proceedings in chapter 252D and sections 598.22, 598.23, and 627.12. Id. Garnishment based on these sections is not subject to any annual restriction.