Arizona Wage Garnishment Basics

In Arizona, creditors with a court judgment can garnish up to 25% of your disposable earnings (or the amount exceeding 30x federal minimum wage, whichever is less). This happens automatically through your employer — the money is taken before you ever see it.

Important: This article provides general information. For legal advice specific to your situation, consult a licensed Arizona bankruptcy attorney.

Who Can Garnish Your Wages

• Creditors with a court judgment: Credit card companies, medical providers, personal loan lenders
• The IRS: Federal tax debt (no court judgment needed)
• Arizona Department of Revenue: State tax debt
• Child support/alimony: Up to 50-65% of disposable income
• Student loans: Federal loans can garnish up to 15% without a judgment

5 Ways to Stop Garnishment

1. File Bankruptcy (Fastest)

Filing Chapter 7 or Chapter 13 triggers an automatic stay — a federal court order that immediately stops all collection activity, including garnishment.

• Chapter 7: Eliminates the underlying debt in 3-4 months
• Chapter 13: Rolls the debt into a manageable repayment plan
• Speed: Garnishment stops the same day you file

2. Negotiate with the Creditor

Contact the creditor (or their attorney) and propose a settlement or payment plan. Some creditors will voluntarily stop garnishment if you agree to regular payments.

• Success rate: ~40-50%
• You need this in writing before relying on it

3. Claim Exemptions

Arizona law protects certain income from garnishment:

• Minimum wage earnings (first 30x federal minimum wage per week)
• Social Security benefits
• Disability benefits
• Unemployment benefits
• Retirement/pension income

If your income is near minimum wage, you may be able to reduce or eliminate the garnishment.

4. Challenge the Judgment

If you weren't properly served with the lawsuit, or if the debt is past the statute of limitations, you may be able to vacate (cancel) the underlying judgment.

Arizona's statute of limitations:

• Written contracts: 6 years
• Oral contracts: 3 years
• Credit card debt: 6 years

5. Pay the Debt

If feasible, paying the full judgment amount plus court costs and attorney fees stops the garnishment. You can also negotiate a lump-sum settlement (typically 40-60% of the total).

Which Option Is Right for You?

| Situation | Best Option | |-----------|-------------| | Multiple debts, low income | Bankruptcy (Chapter 7) | | Have assets to protect, steady income | Bankruptcy (Chapter 13) | | Single small debt | Negotiate or pay | | Improperly served | Challenge the judgment | | Income near minimum wage | Claim exemptions |

Act Fast

Every paycheck that passes with an active garnishment is money you won't get back. The sooner you act, the more you save. Take our free assessment to explore your options.