Credit Accounts

• In Iowa, creditors have up to five years from the last date of activity on a credit card account to bring legal proceedings against debtors for unpaid and delinquent lines of credit. Five years is neither the shortest nor the longest statute of limitations on open accounts in the country, as of May 2011. Nineteen other states have longer statutes of limitations on open accounts.
  
  

Written Contracts

• At 10 years as of May 2011, Iowa has one of the longest statutes of limitations on written contracts in the country. Only three states --- Ohio, Kentucky and Rhode Island --- have longer statutes of limitations on written contracts. The most common types of written contracts are bank loans. To prove breach of contract, a creditor must provide the original written contract and copies of payment receipts.
  
  

Oral Agreements

• At five years as of May 2011, Iowa's statute of limitations on oral agreements is only moderately short. A number of states, including Arizona, California and Kansas, have shorter statutes of limitations. At the opposite end of the spectrum, Louisiana and Rhode Island mandate statutes of limitations laws that at least double the time mandated by Iowa state law. As with most states, Iowa recognizes oral agreements as binding contracts.
  
  

Promissory Notes

• Compared with most states, Iowa has a relatively short statute of limitation on promissory notes. Creditors have up to five years to take legal action to recover debt from unpaid promissory notes. A promissory note is a payable note whereby one entity agrees to pay another entity an agreed upon sum of money by a specific payment due date or as requested by the payer.