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Debt

Small-business owner facing frozen accounts and wage garnishment beside Iowa court documents illustrating confession-of-judgment enforcement Economy

Can a Distant Court Take Your Wages? Iowa’s 1851 Debt Loophole

A Brooklyn lender routed hundreds of confession-of-judgment actions through Iowa courts against borrowers located elsewhere. The practice has triggered legal challenges over notice, debt balances and due-process protections.

October 2, 2026 by Som Bentur

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