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Bank Garnishment Limitation Question

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Libris Fidelis

Junior Member
What is the name of your state? Iowa
After I was terminated in my employment by an international railroad terminal business named CANAC, in Henderson, Nevada, two of my back paychecks "bounced" due to insufficient funds. As I had deposited those two checks in my bank account and had received cash-back, the bank placed a lien on any bank accounts. I tried to pursue a reimbursement through the Nevada state Labor Commission in Las Vegas, Nevada, who ruled in my favor but shelved the claim because "You cannot make an employer repay a bounced check unless they refuse." But CANAC is a British company headquartered in Toronto Canada, with main offices in Michigan and operating offices in Texas, and I was hired by one of their corporations, employed by another of their corporations, paid for my employment by another corporation (a shell game of thirteen corporations, all in Michigan) and since nobody could contact the "employer", the bank where my cheque account was issued a lien on banking accounts.

When I lived in Missouri, there was a minimum amount of $400 a bank account could not be garnished for. I cannot find any information about Iowa garnishment protection. Although I sympathise with the bank I deposited my two bounced payroll checks into, I am not going to reimburse them for pay I did not receive, and there was no recourse (even through the ACLU) in Nevada to recover the funds and make the deposits good with my former bank. Both US and Nevada senators and representatives/assemblymen refused to assist me.

QUESTION: Is there a minimum amount in a personal checking account in the state of Iowa that cannot be garnished? [email protected]


Senior Member
But it's NOT a garnishment, it's a recovery by the bank of funds they paid you and now cannot collect from the company.

It is ONLY a garnishment if you owe child support, spousal support, or you have some other judgment against you.

Libris Fidelis

Junior Member
Bank Garnishment Limitation Question - part 2

Thank you, LadynRed:
All right, if it is a "collection" and not a garnishment, I still need to know if there is any protective provision in Iowa that exempts a certain basic amount of a bank account from "attachment" or "collection" by another creditor, such as my previous bank. As I stated in my first posting, in Missouri the first $400 of a person's bank deposit in an account may not be seized to settle a collection or garnishment, which I found out from a pro-bono attorney who served the homeless in Saint Louis, and I need to know if there is any similar provision for that here in the State of Iowa. I cannot find a pro-bono attorney here in Iowa especially since I am no longer homeless.
I have searched the online statute data for the State of Iowa, but it does not reference any guidelines whatsoever unless it involves a divorce or single-parent child custody case. The other data by the State of Iowa either confuses me or leaves me totally blank due to its not being appropriate or is not applicable to my situation. Any information or ideas that will relieve my concerns?
I am on a very small limited veteran's partial disability pension (tax-exempt and collection exempt by federal legislation) and want to use a cheque account to pay my rent, but I will only do that if I can do so without the fear of losing my very small monthly veterans disability benefit stipend if I deposit my government cheque, which would be a tragedy for me (I just recently ended about a six year homelessness situation).
Libris Fidelis


Senior Member
IF it were an execution on a judgment your VA disability would be exempt - 100%. However, your problem is that you are banking with the same bank you owe money to. The only way to protect your disability pay is to put your money in ANOTHER bank. Eventually the first bank will sue you for the money you owe them, THEN you can claim your exemptions.

As long as your check is going into this same bank, they are going to take whatever money goes into it - it is their right per your account agreement and the exemptions do not apply.

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