Wage Garnishment in Arizona: Limits, Process and How Bankruptcy Stops It

How much of your pay can be garnished in Arizona?

Arizona sets its own ceiling in A.R.S. § 33-1131. For a general money judgment, the maximum part of a debtor's disposable earnings for any workweek that is subject to process may not exceed ten percent of disposable earnings for that week, or the amount by which that week's disposable earnings exceed sixty times the applicable minimum hourly wage, whichever is less. The statute defines the applicable minimum hourly wage as the highest of the federal, state, or local minimum wage. Disposable earnings are what remain after amounts required by law to be withheld (A.R.S. § 33-1131, A.R.S. § 12-1598). Different rules apply to support orders: one-half of disposable earnings for a pay period is exempt (A.R.S. § 33-1131). The exemptions in that section do not apply to state or federal tax debt. Federal law separately caps garnishment and expressly does not displace a state law providing more limited garnishment (15 U.S.C. § 1673, 15 U.S.C. § 1677). We do not publish a verified dollar floor for Arizona; the figure is pending verification.

• General judgments: a percentage-of-disposable-earnings cap or a minimum-wage multiple, whichever yields less (A.R.S. § 33-1131).
• Support orders: one-half of disposable earnings for the pay period is exempt (A.R.S. § 33-1131).
• Tax debt: the section's exemptions do not apply (A.R.S. § 33-1131).

How does a creditor start a garnishment of your wages in Arizona?

A writ of garnishment of earnings issues only in a case where a party is already a judgment creditor (A.R.S. § 12-1598.02). The creditor files a written application stating that a money judgment was awarded, that demand was made and not paid, the outstanding balance with interest and allowable fees, and that the garnishee is believed to be your employer (A.R.S. § 12-1598.03). The clerk, justice of the peace, or city or town magistrate then issues the writ and summons directed to an officer authorized to serve process (A.R.S. § 12-1598.04). A city or town magistrate issues writs only for unpaid fines, fees, sanctions, and restitution imposed in that court (A.R.S. § 12-1598.02). The creditor serves the employer with the writ, the judgment, answer forms, the notice to judgment debtor with a request-for-hearing form, and nonexempt earnings statements, and must deliver your copy within three days, excluding weekends and holidays (A.R.S. § 12-1598.04).

What must your employer do once it is served?

Your employer becomes the garnishee and has duties of its own. It must answer the writ under oath and in writing within ten days of service, and may do so without an attorney (A.R.S. § 12-1598.06, A.R.S. § 12-1598.08). The answer states whether you were employed on the service date, whether earnings are anticipated within sixty days, your next two paydays, your pay period, the balance stated in the writ, and whether another garnishment or wage assignment already exists (A.R.S. § 12-1598.08). The employer delivers a copy of that answer to you along with another notice and request-for-hearing form. From the date of service the writ is a lien on your nonexempt earnings, but the employer may not remit anything to the creditor until the court enters an order (A.R.S. § 12-1598.05). Each pay period under a continuing lien, the employer completes a nonexempt earnings statement and gives it to you with your exempt earnings (A.R.S. § 12-1598.11).

• Ten days to answer, no attorney required (A.R.S. § 12-1598.06, A.R.S. § 12-1598.08).
• Nothing is paid to the creditor before a court order (A.R.S. § 12-1598.05).
• A nonexempt earnings statement accompanies each pay period's exempt earnings (A.R.S. § 12-1598.11).

Which income and property does Arizona law shield from garnishment?

Arizona's garnishment articles work from the concept of exempt earnings — earnings that state or federal law places beyond judicial process (A.R.S. § 12-1598). The notice the court must give you lists categories commonly claimed as exempt monies in a bank account garnishment: temporary assistance for needy families, supplemental security income, Social Security benefits, Department of Veterans Affairs benefits, certain pension benefits and retirement funds, workers' compensation benefits, and some insurance proceeds (A.R.S. § 12-1596). That notice also identifies exempt personal property categories, including household goods, furniture and appliances, wearing apparel, musical instruments, and tools and equipment used in a trade or profession (A.R.S. § 12-1596). The statute cautions that these exemptions are limited by description and dollar value and that certain exemptions may not apply to support orders or tax collection. Separately, A.R.S. § 23-755 lists property exempt from levy under that article. We do not yet publish verified dollar values for Arizona exemptions; those figures are pending verification.

• Benefit income frequently claimed as exempt: TANF, SSI, Social Security, VA benefits, certain pensions and retirement funds, workers' compensation (A.R.S. § 12-1596).
• Exempt personal property categories: household goods and furnishings, apparel, personal items, trade tools (A.R.S. § 12-1596).
• A financial institution may not withhold the amount set as exempt under A.R.S. § 33-1126(A)(9) unless a court orders it after a hearing (A.R.S. § 12-1578).

How do you object to or reduce an Arizona garnishment?

You object in writing and request a hearing. For a garnishment of earnings, the request must be filed no later than ten days after you receive the answer or the nonexempt earnings statement you are objecting to, unless you show good cause for filing later, and you deliver a copy to every party (A.R.S. § 12-1598.07). The court commences the hearing within ten days of receiving your request and must notify you of the date at least two days in advance, excluding weekends and holidays. You state your grounds in writing but are not limited to them at the hearing. For garnishment of monies or property rather than earnings, the deadline is ten days after receipt of the answer and the hearing starts within five days (A.R.S. § 12-1580). Attorney fees incurred because of your objection are generally not chargeable to you unless the court finds you objected solely to delay or harass (A.R.S. § 12-1598.07).

• Earnings garnishment: object within ten days of the answer or earnings statement (A.R.S. § 12-1598.07).
• Hardship reduction: a court finding extreme economic hardship by clear and convincing evidence may lower withholding from twenty-five percent to not less than fifteen percent (A.R.S. § 12-1598.10).
• Deadlines run from receipt, and a mailed document is presumed received five days after mailing (A.R.S. § 12-1597).

How does filing bankruptcy affect an Arizona garnishment?

Arizona law decides the garnishment; federal law decides what a bankruptcy filing does to it. Filing a petition operates as a stay of the commencement or continuation of actions against the debtor, of the enforcement of a prepetition judgment, and of acts to collect a prepetition claim (11 U.S.C. § 362). Arizona's own statute recognizes the effect: a continuing lien on earnings is invalid and of no force when the proceedings are stayed by a court of competent jurisdiction, including the United States bankruptcy court (A.R.S. § 12-1598.10). The ninety-day release provision in A.R.S. § 12-1587 also does not apply to monies or property held for a bankruptcy trustee once the judgment debtor has filed. The stay is not unlimited: § 362(b) lists exclusions, and a creditor may ask the court for relief from the stay. Arizona has opted out of the federal exemption list, so a filer there uses Arizona exemptions (A.R.S. § 33-1133(B)).

• A filing stays enforcement of a prepetition judgment and acts to collect a prepetition claim (11 U.S.C. § 362).
• An Arizona continuing lien on earnings becomes ineffective when a bankruptcy court stays the proceedings (A.R.S. § 12-1598.10).
• In a Chapter 13 case a codebtor stay can also limit collection of a consumer debt from someone else liable with you (11 U.S.C. § 1301).

What should you ask a lawyer or legal aid about your garnishment?

Bring the paperwork — the writ, the underlying judgment, the garnishee's answer, your nonexempt earnings statements, and recent pay stubs — and a note of the date you received each document, because the objection window runs from receipt (A.R.S. § 12-1598.07, A.R.S. § 12-1597). Useful questions include: is the judgment valid and still unsatisfied; is the withholding consistent with the ceiling in A.R.S. § 33-1131; would the hardship reduction in A.R.S. § 12-1598.10 apply to your household; is any of the garnished income within the exempt categories the court's notice lists (A.R.S. § 12-1596); and how would a Chapter 7 or Chapter 13 filing compare with objecting inside the state case. Federal law also bars an employer from discharging an employee because earnings were garnished for any one indebtedness (15 U.S.C. § 1674). Ask how that protection applies if a second garnishment arrives.

• Confirm the judgment, the balance, and the withholding math against A.R.S. § 33-1131.
• Ask whether an exemption claim, a hardship reduction, or a bankruptcy filing fits your facts better.
• Ask about the employment protection in 15 U.S.C. § 1674 and its limits.

Frequently asked questions

Can a creditor garnish my Arizona wages without suing me first?

No. A writ of garnishment of earnings issues only in a case in which a party is already a judgment creditor, and the application must state that a money judgment was awarded and that demand went unpaid (A.R.S. § 12-1598.02, A.R.S. § 12-1598.03). A city or town magistrate may issue a writ only for fines, fees, sanctions, and restitution imposed in that court.

How long do I have to object to an Arizona wage garnishment?

Generally ten days after you receive the garnishee's answer or the nonexempt earnings statement you are objecting to, unless you show good cause for a later filing (A.R.S. § 12-1598.07). File a written objection and request for hearing and deliver a copy to all parties. A mailed document is presumed received five days after mailing (A.R.S. § 12-1597).

Can the court lower the amount being withheld instead of stopping it?

Yes, in defined circumstances. If the court determines at the hearing that you are subject to the twenty-five percent maximum disposable earnings provision under A.R.S. § 33-1131(B), and finds by clear and convincing evidence that you or your family would suffer extreme economic hardship, it may reduce withholding under a continuing lien from twenty-five percent to not less than fifteen percent (A.R.S. § 12-1598.10).

Does a bankruptcy filing end an existing Arizona garnishment?

A filing operates as a stay of the enforcement of a prepetition judgment and of acts to collect a prepetition claim (11 U.S.C. § 362). Arizona's statute treats a continuing lien on earnings as invalid and of no force when proceedings are stayed by a bankruptcy court (A.R.S. § 12-1598.10). Exclusions in § 362(b) and stay-relief motions can change that result.

Can my employer fire me because of a garnishment?

Federal law states that no employer may discharge an employee by reason of the fact that earnings have been subjected to garnishment for any one indebtedness, with criminal penalties for a willful violation (15 U.S.C. § 1674). The statute's protection is framed around a single indebtedness, so talk to a lawyer or legal aid if more than one garnishment is involved.

Can Arizona filers choose the federal bankruptcy exemption list instead?

No. Arizona has opted out of the federal § 522(d) exemption list, so whether Arizona filers may elect those federal exemptions is no (A.R.S. § 33-1133(B)). The opt-out does not affect exemptions provided to Arizona residents by the state constitution or statutes. An attorney can identify which Arizona exemptions apply to your income and property.

Sources

• A.R.S. § 33-1131 — Definition; wages; salary; compensation
• A.R.S. § 12-1598 — Definitions
• A.R.S. § 12-1598.02 — Grounds for issuance of writ of garnishment of earnings
• A.R.S. § 12-1598.03 — Application for writ of garnishment for earnings
• A.R.S. § 12-1598.04 — Issuance of writ; service and return; lien on nonexempt earnings
• A.R.S. § 12-1598.05 — Initial lien
• A.R.S. § 12-1598.06 — Time for answer
• A.R.S. § 12-1598.07 — Objection to garnishment, answer or nonexempt earnings statement; hearing
• A.R.S. § 12-1598.08 — Answer of garnishee to writ of garnishment of earnings
• A.R.S. § 12-1598.10 — Continuing lien on earnings; order
• A.R.S. § 12-1598.11 — Continuing lien procedure; nonexempt earnings statement
• A.R.S. § 12-1596 — Forms; notice to judgment debtor
• A.R.S. § 12-1597 — Mailing; receipt; presumptions
• A.R.S. § 12-1580 — Objection to garnishment or answer; hearing
• A.R.S. § 12-1578 — Limitations on transfers by garnishee after service
• A.R.S. § 12-1587 — Discharge of garnishee if judgment or order not obtained within ninety days
• A.R.S. § 23-755 — Property exempt from levy
• A.R.S. § 33-1133(B) — Arizona federal exemption opt-out
• 11 U.S.C. § 362 — Automatic stay · official source
• 11 U.S.C. § 1301 — Stay of action against codebtor · official source
• 15 U.S.C. § 1673 — Restriction on garnishment
• 15 U.S.C. § 1674 — Restriction on discharge from employment by reason of garnishment
• 15 U.S.C. § 1677 — Effect on State laws

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