Start My Answer
loading...

Stop Wage Garnishment in Arizona

Sarah Edwards | May 23, 2024

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Harris is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Are you facing a debt lawsuit in Arizona? If you lose your case, your creditor may seize up to 25% of your weekly earnings. Luckily, Arizona laws can help you stop unfair wage garnishment. Alternatively, there are ways to avoid garnishment like responding to your lawsuit with a written Answer or settling your debt before going to court.

Birds are chirping, the sun is shining, and everything seems wonderful — until you find a summons for a debt lawsuit on your Arizona front porch. You'll want to act quickly if you’re the subject of a debt lawsuit. If you lose the case, your creditors will win a judgment they can use to garnish your pay or seize other assets, like your bank account.

A wage garnishment requires your employer to withhold part of your weekly income until you satisfy a debt. The amount of a wage garnishment varies depending on state laws, your earnings, and the total you owe. Generally, the more you earn and the higher your debt, the greater the garnishment amount.

Avoid wage garnishment through debt settlement.

INSERT SOLOSETTLE CTA

Arizona wage garnishment laws may protect you

Creditors only gain the right to garnish your wages if they win a debt lawsuit against you. They can’t just contact your employer and tell them to start withholding a part of your pay to satisfy a debt you owe. Instead, a creditor must go through the appropriate legal process before wage garnishment can start.

Every state has its own rules concerning wage garnishment, and Arizona is no different. According to Ariz. Rev. Stat. § 33-1131, the maximum wage garnishment is the lesser of these two amounts:

  • 10% of the individual’s weekly disposable earnings.
  • The amount that the individual's disposable earnings exceed 60 times the federal minimum wage, which is currently $7.25 hourly.

Disposable earnings include income from a job, bonus, or commissions. In Arizona, they also include payments from a retirement plan or pension, less any required tax withholdings.

Arizona does provide some relief to debtors who enroll their debts in a qualified debt counseling organization. Under Ariz. Rev. Stat. § 12-1598.10(B), no creditor can garnish an individual’s wages if the debt is part of a debt consolidation or settlement program at the time of the writ of garnishment.

To qualify for the debt counseling exemption, you must follow the guidelines set forth by Ariz. Rev. Stat. § 12-1598.07. You must file an objection with the court within 10 days of receiving notice of the impending garnishment and attend a hearing.

At the hearing, the judge will review your supporting evidence to determine whether your debt meets the requirements and is part of a valid debt consolidation or settlement agreement. Your creditor cannot garnish your wages if the judge decides that it is.

Let’s consider an example.

Example: Jill owes a $3,000 balance on a credit card with Silver Bank. She stopped making payments, so Silver Bank decided to sue her in Arizona. Jill didn’t respond to the lawsuit, and Silver Bank obtained a default judgment against her. Now, Silver Bank plans to garnish Jill’s wages. Jill earns $1,000 weekly from her job after taxes. According to Arizona law, Jill’s employer must withhold $100 (10%) from her weekly pay until Jill satisfies the debt. The alternative option is $565, or $1,000 - (60 x $7.25). Since $100 is less than $565, it will apply in Jill’s case. She’ll pay the $100 for 30 weeks until she completely repays the loan.


The outcome of our example would be different if Jill’s debt were part of a debt settlement or consolidation plan with a qualified debt counselor. Jill could file an exemption showing the debt was part of a repayment plan, and the creditor wouldn’t be able to garnish Jill’s wages.

Learn more about wage garnishment in Arizona here.

You have options if you’re facing a debt lawsuit in Arizona

If a creditor decides to sue you in Arizona, you must follow a few steps to protect yourself.

First, don’t ignore your creditor’s Complaint. A Complaint describes the creditor’s grievances. It will list identifying information concerning the debt, like your account number and the amount you owe. Review the Complaint carefully to see if there are any errors, like a mistake in your account number or the total obligation due.

Next, you’ll want to draft an Answer. An Answer is a formal reply to your creditor’s Complaint. It describes your reasons for nonpayment and contains defenses you can use to argue against your creditor’s claim.

If you’ve never filled out an Answer before, you may want some assistance. SoloSuit has a Debt Answer template you can follow.

An Answer stops the court from granting a default judgment in your case. If you provide an Answer, the judge must listen to your arguments before making a final decision on the lawsuit.

You should take the appropriate steps to resolve the obligation before your court date, especially if the debt isn’t part of a repayment plan with a debt counselor. You can either repay the debt or attempt to settle it.

Repaying the debt before your court date is the best option. A complete repayment stops any further legal activity against you since you’ll no longer owe your creditor any money. The creditor will drop the case, and you can move on without worrying about wage garnishment.

If you can’t afford to fully repay the debt, settling it may be the next best option.

Avoid wage garnishment in Arizona through debt settlement

When you settle a debt, you offer the creditor a portion of the debt in a lump-sum payment. The creditor then agrees to release you from the remaining balance and drop the legal claim against you.

Debt settlement benefits both creditors and consumers. The creditor will receive part of the debt you owe without needing to go to court or fill out paperwork for a garnishment. You’ll also avoid court, and you’ll be able to put the debt behind you without fear that the creditor will start another lawsuit against you.

To learn more about how to settle your debt in Arizona, check out this video:

SoloSettle, powered by SoloSuit, is a tech-based approach to debt settlement. Our software helps you send and receive settlement offers until you reach an agreement with the collector. Once an agreement is reached, we’ll help you manage the settlement documentation and transfer your payment to the creditor or debt collector, helping you keep your financial information private and secure.

Don’t allow a creditor to garnish your Arizona wages

If you’ve fallen behind on your obligations, it’s time to get back on top — especially if you’re facing a debt lawsuit. If your creditor wins a debt lawsuit against you, it can garnish your wages, making it more challenging to pay your other bills. Take action by repaying or settling the debt, and move on from a tough situation.

Not sure how to start the debt settlement process? Try SoloSettle today.

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started

Contents