Garnishment

Your Rights Under Arizona Wage Garnishment Laws

Mirroring federal laws, Arizona wage garnishment laws provide identical protections for citizens, limiting the amount that creditors can garnish from their paychecks.

With only non-exempt wages accessible to creditors for garnishment, there are also strict limits in Arizona on how much can be garnished per paycheck.

Understanding How Wage Garnishment Works

Wage garnishments, referred to as wage attachments in some cases, are orders from a court or government agency that require your employer to withhold a specific amount of money per check, sending it instead directly to the creditor.

When Do Creditors Get To Garnish Wages?

Before garnishing your wages, most creditors must obtain a court judgement that indicates you owe them money. Simply falling behind on payments to a creditor does not warrant wage garnishment until the creditor files a lawsuit and gets a judgement in court.

The following types of debt are exempt from following this rule and can garnish wages without a judgement:

Court Ordered Child Support
Student Loan Defaults
Unpaid Income Tax

Wage Garnishment Laws in Arizona

Though states can impose their own laws over wage garnishment limits, Arizona's are exactly the same as Federal wage garnishment laws.

Creditors Are Only Allowed to Take the Lessor of the Following.

25% of Non-Exempt Weekly Earnings
Amount of Non-Exempt Earnings that exceed 30 times the federal minimum wage

The wages that remain after an employer has made the required deductions are referred to as "Disposable Earnings".

Termination of Employment Due To Wage Garnishment

Arizona wage garnishment laws dictate that an employer cannot fire their employee because of a child support wage garnishment. Rehires, returning employees or new hires are sometimes required to disclose their child support withholding status, but hiring or firing cannot be based on this information.

Bank Levy Laws in Arizona

A bank levy grants the creditor the right to take money from the bank account of a debtor and apply these funds to the balance of a judgement.

Under Arizona Title 25 - Chapter 5 - Article 1 25-521, the state of Arizona allows bank levies for family support.

In the event of a court ordered judgement, the department may issue a levy and collect the full amount owed. Arizona bank levy laws also allow collection on all property and rights to property not including exemptions under federal and state laws.

Arizona Title 23 - Chapter 4 - Articles 5 23-752 and 23-755 allow for the seizure of personal property as well as wages under Arizona bank levy laws.

What To Do If You Have A Judgment Against You

In Arizona, having a judgment against debt owed to a creditor can drastically impact your financial health. One adverse effect of receiving adjustment comes by way of wage garnishment, as detailed above. Often, creditors that hold a judgement against an Arizona resident will seek to garnish their bank accounts towards the balance of a debt.

There are a variety of options available to Arizona citizens who currently have a creditor judgement.

Know Your Rights In Arizona

You may be able to avoid bankruptcy all together, and even keep your property in the process. Call and talk to Cy T. Hainey and his team at Hilltop Law Firm. They will give you a clearer picture of your options, with the possibility of avoiding bankruptcy, wage garnishment, and foreclosure all together.

Reach out to Hilltop Law Firm for a 100% FREE ZERO OBLIGATION CONSULTATION.

Can filing bankruptcy stop my wage garnishment?

It can be hard to make ends meet under normal circumstances. In Arizona, creditors can garnish up to 25% of your take-home pay, depending on the type of debt. If you're already living paycheck to paycheck, wage garnishment be disastrous.

Luckily, filing bankruptcy can stop most garnishments. When you file your bankruptcy case, the bankruptcy court issues an order called the automatic stay, which stops creditors from initiating or continuing any action against you. Once the bankruptcy is filed, we notify your employer, and your employer will stop the garnishment.

If your wages are being garnished for domestic support obligations, such as child support or spousal maintenance (alimony), a chapter 7 bankruptcy will not stop the garnishment. A chapter 13 garnishment will stop these garnishments, but the obligation will have to be paid in full through your chapter 13 plan.