Iowa Statute of Limitations on Debt: How Long Can You Be Sued?

In Iowa, a creditor or debt collector generally has 10 years to sue you on a written contract and 5 years to sue on an unwritten or open account such as many credit cards. These deadlines come from Iowa Code section 614.1: subsection 5 sets a ten-year limit for actions "founded on written contracts," and subsection 4 sets a five-year limit for actions "founded on unwritten contracts." Iowa's ten-year written-contract window is one of the longest in the country, so a debt that would be uncollectable in many states may still be enforceable here. Once the correct period runs out, the statute of limitations becomes a complete defense - but only if you raise it in court.

How long Iowa gives a creditor to sue, by debt type

Iowa does not use a single deadline for every debt. The clock depends on what kind of obligation the creditor is suing on:

• Written contracts - 10 years (Iowa Code section 614.1(5)). This covers signed loan agreements, written installment contracts, and similar obligations where the terms appear in a signed document.
• Promissory notes - generally 10 years. A promissory note is a written contract, so it normally falls under the ten-year written-contract period.
• Unwritten contracts and open accounts - 5 years (Iowa Code section 614.1(4)). This typically includes oral agreements and revolving "open account" balances.
• Credit cards - frequently 5 years, but contested. Many credit card balances are treated as open accounts subject to the five-year period. However, a creditor may argue that a signed or accepted cardholder agreement makes the account a written contract subject to ten years. Iowa courts can go either way depending on the facts and documents, so this is an area where the exact deadline is genuinely disputed.

Because the credit card question is unsettled, do not assume a card debt is time-barred at five years. If a collector sues and the deadline matters, have a lawyer review which subsection applies to your specific account and paperwork.

When the clock starts running

The limitations period generally begins when the cause of action "accrues" - in plain terms, when you default and the creditor first has the right to sue. For most consumer debts that is tied to your last activity on the account, commonly the date of your last payment or the date you first missed a required payment and never cured it. From that accrual date, Iowa's five- or ten-year clock starts counting.

Pinpointing the start date matters because being even a little wrong can change whether a lawsuit is timely. Pull your records - statements, payment history, and any default notice - to identify the real date of last payment or first uncured default before deciding whether the period has expired.

The critical trap: a payment or written acknowledgment can restart the clock

This is the rule that surprises Iowa consumers most. Under Iowa Code section 614.11, a debt obligation can be revived - meaning the limitations clock can restart - by an admission that the debt is unpaid or by a new promise to pay it. In practice, this means:

• Making a payment - even a small "good faith" partial payment - can reset the clock and give the creditor a fresh period to sue.
• Acknowledging the debt in writing or signing a new promise to pay can revive the obligation.
• Agreeing to a new payment plan over the phone or in writing can have the same effect.

This is exactly why aggressive collectors push hard for "just one payment today" on very old debts. A single payment on a debt that was about to become unenforceable can hand the collector years of new time to sue. Before you pay, promise to pay, or sign anything on an old debt, find out how old it is. If the period has already run, paying may waive a defense you did not know you had. The precise wording and requirements of revival (for example, when a writing is required) are technical, so confirm the current text of Iowa Code section 614.11 or talk to a lawyer before acting.

An expired deadline is a defense - but you must raise it

Here is the part too many people miss: in Iowa, the statute of limitations is an affirmative defense. It does not stop a lawsuit automatically, and the court will not throw the case out on its own. If you are sued on a time-barred debt and you ignore the lawsuit, the creditor can still win a default judgment against you - even though the deadline had passed - simply because no one raised the defense.

To use the defense you must show up and assert it. That means filing a written answer to the petition by the deadline stated in the court papers and specifically stating that the claim is barred by the statute of limitations. Raise it early; affirmative defenses generally must be pleaded or they can be considered waived. If you have been served with a debt-collection lawsuit in Iowa, do not let the response deadline pass - responding is what preserves the defense.

How Iowa compares to federal law

State statutes of limitations work alongside several federal consumer protections:

• FDCPA (federal Fair Debt Collection Practices Act): It is illegal for a debt collector to sue or threaten to sue you on a debt that is past the statute of limitations. Federal regulations also require collectors to make certain disclosures about time-barred debt. So even where Iowa law would let an original creditor sue, a third-party collector who files a lawsuit on a clearly time-barred debt may be violating federal law.
• FCRA (federal Fair Credit Reporting Act): Most negative debts can stay on your credit report for about seven years. Note this is separate from the statute of limitations - a debt can fall off your credit report while still being within the period to sue, or remain reportable after the period to sue has expired. The two clocks are different.
• Wage garnishment cap: Federal law caps most wage garnishment at 25% of disposable earnings (or the amount above 30 times the federal minimum wage, whichever is less). Iowa adds its own layered limits that are more protective for lower-income earners, so the amount a judgment creditor can actually take is often well below the federal ceiling.

A key point: an expired statute of limitations does not erase the debt. The collector can still ask you to pay and can keep reporting it for as long as the FCRA allows. What an expired period does is remove their ability to win a lawsuit - if you raise the defense.

Where to verify and get help in Iowa

Statutes and their interpretation change, and the rules above involve technical distinctions, so confirm the current law before you rely on it:

• Iowa Code Chapter 614 (sections 614.1 and 614.11) is the controlling statute for limitations periods and revival. Read the current official text on the Iowa Legislature's website.
• The Iowa Attorney General's Office, Consumer Protection Division handles consumer complaints about debt collectors and unfair practices, and publishes consumer guidance. You can file a complaint or request information there.
• Iowa Legal Aid offers free or low-cost help to eligible Iowans facing debt-collection lawsuits.
• The federal Consumer Financial Protection Bureau (CFPB) publishes guides on time-barred debt and accepts complaints against collectors.

If you have been sued, are near a deadline, or are being pressured to pay on an old account, consider speaking with an Iowa-licensed consumer attorney. The cost of a short consultation is small compared with a default judgment on a debt that may no longer be enforceable. This article is general information, not legal advice for your situation.

Official Iowa Sources

This page is based on Iowa law. Limits and deadlines change — verify the current details directly with the official Iowa sources below. This is general legal information, not legal advice.

• Iowa Attorney General — Consumer Protection Division — official Iowa agency.
• File a Consumer Complaint — Iowa Attorney General
• Iowa Code § 537.7103 — Prohibited practices (Consumer Credit Code, debt collection)

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Iowa’s own rules.