NOT LEGAL OR FINANCIAL ADVICE
This content is for educational purposes only. Laws change frequently and vary by circumstance. Always consult a licensed attorney in your state before taking any legal action. We are not responsible for any decisions or actions taken based on this information.
Iowa Freelance Invoice Laws
General information about collecting unpaid invoices in Iowa
Last Updated: 2025-01-01 • Always verify with a Iowa attorney
Late Fee Limit
No statutory limit for B2B contracts
Interest Rate
5% per annum (statutory); post-judgment varies
Small Claims Limit
$6,500
Statute of Limitations
10 years for written contracts, 5 years for oral
Additional Context
Late Fees: Late fees must be reasonable and specified in the contract. Iowa courts enforce agreed-upon commercial provisions.
Interest: Post-judgment interest is set by the court. Parties can agree to higher pre-judgment rates.
Small Claims: Small claims court handles disputes. Filing fees are $25-$50. Informal process, attorneys allowed but not required.
General Best Practices
These are general suggestions, not legal advice. Consult an attorney for your specific situation.
- ✓ Use written contracts—Iowa gives 10 years vs 5 for oral
- ✓ Include late fee and interest provisions
- ✓ Send invoices promptly with detailed itemization
- ✓ Document all scope changes and approvals
- ✓ Use small claims for amounts up to $6,500
Common Mistakes to Avoid
- ✗ Relying on oral agreements (only 5-year limit vs 10 for written)
- ✗ Not specifying interest rates in contracts
- ✗ Not knowing the $6,500 small claims limit
- ✗ Filing in wrong county
- ✗ Skipping demand letters
When to Consult an Attorney
For invoices over $6,500 or complex contract disputes.
Frequently Asked Questions
What is the small claims limit in Iowa?
Iowa small claims courts handle disputes up to $6,500. Filing fees are $25-$50. Attorneys are allowed but not required.
How long do I have to sue for an unpaid invoice in Iowa?
Iowa has a generous 10-year statute for written contracts, but only 5 years for oral agreements. Always use written contracts.
What interest rate can I charge on overdue invoices in Iowa?
The statutory rate is 5% per annum. You can specify higher rates in your contract for commercial transactions.
Where do I file a small claims case in Iowa?
File in the small claims court for the county where the defendant resides or does business.
Do I need a collection license in Iowa?
No state license is required to collect your own debts. Third-party agencies should comply with Iowa's licensing requirements.
Sources & References
These are reference sources only. Laws change—verify current statutes before taking action.
- Iowa Code § 535.2 (Interest)
- Iowa Code § 631.1 (Small Claims)
- Iowa Code § 614.1 (Statute of Limitations)
- Iowa Judicial Branch - Small Claims
IMPORTANT LEGAL DISCLAIMER
This is NOT legal or financial advice. The information on this page is provided for general educational and informational purposes only. It is not intended to be, and should not be construed as, legal, financial, or professional advice.
Laws change frequently. State laws, court rules, and regulations are subject to change without notice. The information presented here may not reflect the most current legal developments or may not apply to your specific situation.
Consult a licensed professional. Before taking any action based on the information on this website, you should consult with a licensed attorney in Iowa who can provide advice tailored to your specific circumstances.
No attorney-client relationship. Viewing this information does not create an attorney-client relationship between you and Happy Freelance Life or its creators.
No liability. Happy Freelance Life and its creators disclaim all liability for any actions taken or not taken based on any information on this website. You assume full responsibility for any decisions or actions you take based on this content.
If you need legal help, please contact the Iowa State Bar Association for attorney referrals or a legal aid organization in your area.
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Take the QuizThis information is for educational purposes only and does not constitute legal advice. Consult a licensed Iowa attorney for specific legal guidance. This page was last updated on 2025-01-01. For current legal information, consult the official Iowa state statutes or a licensed Iowa attorney. Happy Freelance Life is not a law firm and does not provide legal services.