How much of my wages can a creditor take in Arizona?

After Proposition 209, Arizona caps wage garnishment at the lesser of 10% of disposable earnings or the amount by which weekly earnings exceed 60 times the highest applicable minimum wage under A.R.S. § 12-1598.10. Employers and creditors sometimes still rely on outdated 25% forms, but Arizona law requires correction and return of over-withheld funds. If a 10% garnishment would create extreme hardship, you can petition the court for a 5% reduction.

Can an old debt still be collected in Arizona?

It depends on the claim type and the last date of activity. Written-contract claims, including most credit cards, generally carry a 6-year limitations period under A.R.S. § 12-548. Open accounts and oral contracts generally carry a 3-year period under A.R.S. § 12-543. A time-barred debt is not automatically dismissed if a collector sues; you must raise the statute of limitations in your written answer, and any new payment or written acknowledgment can restart the clock.

I was sued for a debt. What should I do first?

File a written answer on time, count the correct deadline for the court level, and preserve every paper you received. In justice court the answer deadline is usually 20 calendar days after service; in superior court it is usually 30. Your answer should respond to the allegations and raise defenses such as statute of limitations, lack of standing, or improper amount. If you do nothing, the creditor may obtain a default judgment for the full claimed balance plus costs and fees.

Can creditors take money from my bank account in Arizona?

Arizona protects $5,000 in bank funds under A.R.S. § 33-1126, and many federal benefits remain fully protected under federal law. The exemption applies per debtor, not per account, so the combined balance matters. If an account garnishment notice reaches you and the funds are exempt, act quickly and file a claim of exemption with supporting records such as benefit statements or bank records before the deadline expires.

Access Arizona

Arizona Debt Help

Arizona debt help on garnishment limits, debt lawsuits, bank protections, and statute-of-limitations rules after Proposition 209.

Answer first

Arizona Proposition 209, effective December 5, 2022, substantially reduced how much creditors can take from wages and bank accounts. Under A.R.S. § 12-1598.10, wage garnishment is capped at the lesser of 10% of disposable earnings or the amount by which weekly earnings exceed 60 times the applicable minimum wage. The bank account exemption increased to $5,000 under A.R.S. § 33-1126, the homestead exemption is $400,000 under A.R.S. § 33-1101, and most written-contract debt claims remain subject to a 6-year limitations period under A.R.S. § 12-548. If you are sued on a debt, you generally have 20 calendar days to answer in justice court or 30 days in superior court before default risk increases sharply.

Key rules and deadlines

Maximum wage garnishment — 10% of disposable earnings or amount over 60× minimum wage, whichever is less (A.R.S. § 12-1598.10)
Bank account exemption — $5,000 protected (A.R.S. § 33-1126)
Homestead exemption — $400,000 of home equity (A.R.S. § 33-1101)
Motor vehicle exemption — $15,000 per vehicle ($25,000 if disabled) (A.R.S. § 33-1125)
Medical debt interest cap — 3% per year or weekly CMT yield, whichever is less (A.R.S. § 44-1201)
Written contract limitations period — 6 years from default (A.R.S. § 12-548)
Open account or oral contract limitations period — 3 years (A.R.S. § 12-543)
Time to answer in justice court — 20 calendar days (Ariz. R. Civ. P. Justice Court 5)
Time to answer in superior court — 30 calendar days (Ariz. R. Civ. P. 12)
Hardship reduction — Court may reduce garnishment to 5% (A.R.S. § 12-1598.10(F))

First steps

Save every collection letter, lawsuit paper, and court deadline in one folder.
Identify the debt type and the last activity date before using the limitations tool.
Check whether your wages are protected before agreeing to automatic payments or a judgment plan.

How to move forward

Identify the claim — Look for the original creditor, account type, date of last payment, and whether a court filed the case already.
Measure the deadline — Use the limitations and appeal tools before you call the collector, admit the debt, or miss a court response date.
Protect income first — If garnishment is threatened, calculate protected wages and review exemption options immediately.

Frequently asked questions

How much of my wages can a creditor take in Arizona? — After Proposition 209, Arizona caps wage garnishment at the lesser of 10% of disposable earnings or the amount by which weekly earnings exceed 60 times the highest applicable minimum wage under A.R.S. § 12-1598.10. Employers and creditors sometimes still rely on outdated 25% forms, but Arizona law requires correction and return of over-withheld funds. If a 10% garnishment would create extreme hardship, you can petition the court for a 5% reduction.
Can an old debt still be collected in Arizona? — It depends on the claim type and the last date of activity. Written-contract claims, including most credit cards, generally carry a 6-year limitations period under A.R.S. § 12-548. Open accounts and oral contracts generally carry a 3-year period under A.R.S. § 12-543. A time-barred debt is not automatically dismissed if a collector sues; you must raise the statute of limitations in your written answer, and any new payment or written acknowledgment can restart the clock.
I was sued for a debt. What should I do first? — File a written answer on time, count the correct deadline for the court level, and preserve every paper you received. In justice court the answer deadline is usually 20 calendar days after service; in superior court it is usually 30. Your answer should respond to the allegations and raise defenses such as statute of limitations, lack of standing, or improper amount. If you do nothing, the creditor may obtain a default judgment for the full claimed balance plus costs and fees.
Can creditors take money from my bank account in Arizona? — Arizona protects $5,000 in bank funds under A.R.S. § 33-1126, and many federal benefits remain fully protected under federal law. The exemption applies per debtor, not per account, so the combined balance matters. If an account garnishment notice reaches you and the funds are exempt, act quickly and file a claim of exemption with supporting records such as benefit statements or bank records before the deadline expires.

Primary sources

Related tools

Arizona statute of limitations calculator — Estimate a possible Arizona filing deadline based on claim type and the last activity date you enter.
Arizona wage garnishment calculator — Estimate protected pay and possibly garnishable earnings under Arizona rules after Proposition 209.