Arizona Debt Collection Laws: Time Limits, Garnishment and Your Rights
Arizona debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Arizona
- Time limit to sue on a written contract
- 6 years for a debt based on a written contract signed in Arizona. If another state's limitations period conflicts, Arizona's 6-year rule applies to these debts. A.R.S. § 12-548(A)(1), (B)
- Wage garnishment limit
- For ordinary consumer debts, no more than the lesser of 10% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 60 times the highest applicable federal, state or local minimum hourly wage. A.R.S. § 33-1131(B)-(D); Arizona Judicial Branch, Proposition 209 Information Sheet
- Money protected in a bank account
- $5,000 held in a single account at any one financial institution is exempt, adjusted every January 1 for inflation beginning in 2024. The exempt amount is still subject to the bank's normal service charges. A.R.S. § 33-1126(A)(9)
- Answering a debt lawsuit
- Many debt cases are filed in Justice Court. In a small claims case (up to $5,000), the defendant must file a written answer and pay the answer fee within 20 days after service. A.R.S. § 22-514; A.R.S. § 22-522
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for a debt based on a written contract signed in Arizona. If another state's limitations period conflicts, Arizona's 6-year rule applies to these debts. Re-verified 2026-10-27. Source: A.R.S. § 12-548(A)(1), (B) |
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| Time limit for credit cards and open accounts | Credit card debt has 6 years under the same statute as written contracts. Debts not evidenced by a written contract (such as oral agreements) and stated or open accounts have 3 years. § 12-543 text: https://www.azleg.gov/ars/12/00543.htm Re-verified 2026-10-27. Source: A.R.S. § 12-548(A)(2); § 12-543 |
| Can a payment restart the clock? | Once a claim is time-barred, an acknowledgment that the debt is owed revives it only if the acknowledgment is in writing and signed by the debtor. The statute does not address the effect of a partial payment. Re-verified 2026-10-27. Source: A.R.S. § 12-508 |
| How long a judgment lasts | A judgment can be enforced for 10 years after it is entered. It can be renewed by affidavit, or by a lawsuit brought on it, within each 10-year period; each renewal gives another 10 years. Renewal by affidavit is under A.R.S. § 12-1612 (not separately reviewed). Re-verified 2026-10-27. Source: A.R.S. § 12-1551 |
If you are sued
| Answering a debt lawsuit | Many debt cases are filed in Justice Court. In a small claims case (up to $5,000), the defendant must file a written answer and pay the answer fee within 20 days after service. A defendant who does not answer risks a default judgment. Re-verified 2026-10-27. Source: A.R.S. § 22-514; A.R.S. § 22-522 |
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Garnishment and what creditors can't take
| Wage garnishment limit | For ordinary consumer debts, no more than the lesser of 10% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 60 times the highest applicable federal, state or local minimum hourly wage. This is stricter than the federal limit. The court may reduce the amount further on clear and convincing evidence of extreme economic hardship. Support orders and tax debts follow different rules. Information sheet: https://www.azcourts.gov/selfservicecenter/Garnishment/Proposition-209. The 10%/60x rule took effect December 5, 2022 (Proposition 209). Re-verified 2026-10-27. |
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| Money protected in a bank account | $5,000 held in a single account at any one financial institution is exempt, adjusted every January 1 for inflation beginning in 2024. The exempt amount is still subject to the bank's normal service charges. The current inflation-adjusted figure was not found on an official source; $5,000 is the statutory base. Re-verified 2026-10-27. Source: A.R.S. § 33-1126(A)(9) |
| Homestead exemption | Up to $400,000 of equity in a home the debtor lives in (house, condominium or cooperative, or a mobile or manufactured home and the land under it). Only one homestead per person or married couple. The amount is adjusted every January 1 for inflation, beginning in 2024. The exemption also protects identifiable cash proceeds from the sale of the home for up to 18 months. The current inflation-adjusted dollar figure was not found on an official source; $400,000 is the statutory base set by Proposition 209 (2022). Re-verified 2026-10-27. Source: A.R.S. § 33-1101(A)-(D) |
| Vehicle exemption | Equity in one motor vehicle up to $15,000, or $25,000 if the debtor or a dependent has a physical disability. The amounts are adjusted every January 1 for inflation, beginning in 2024. The current inflation-adjusted figures were not found on an official source. Re-verified 2026-10-27. Source: A.R.S. § 33-1125(8) |
| Claiming an exemption | A debtor who claims an exemption from a garnishment files a written objection and request for hearing with the court, generally within 10 days after receiving the garnishee's answer (or, for wages, the nonexempt earnings statement), and delivers copies to all parties. For bank accounts and other non-wage garnishments, the hearing must start within 5 days after the request (not counting weekends and holidays) and be held no later than 10 days after the request unless the debtor asks for a continuance; for wage garnishments, the hearing must be held no later than 15 days after the court receives the request. Wage garnishment section: https://www.azleg.gov/ars/12/01598-07.htm. Court forms: https://www.azcourts.gov/selfservicecenter/Garnishment/Forms Re-verified and corrected 2026-10-27. Source: A.R.S. §§ 12-1580, 12-1598.07 |
| Bankruptcy exemptions | Arizona has opted out of the federal exemptions. Arizona residents must use Arizona's exemptions in bankruptcy. Re-verified 2026-10-27. Source: A.R.S. § 33-1133(B) |
Debt collectors and interest
| State debt collection law | Arizona's collection agency law (A.R.S. Title 32, Ch. 9) makes it unlawful to run a collection agency without a license and sets rules for licensees, such as not advertising a debt for sale to pressure payment and accounting for money collected. Debtor-facing conduct is otherwise governed mainly by the federal FDCPA and Arizona's Consumer Fraud Act. Re-verified 2026-10-27. Source: A.R.S. § 32-1055 |
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| Debt collector licensing | Yes. A person may not conduct a collection agency in Arizona without a license from the Department of Insurance and Financial Institutions. Applicants must file a financial statement and a bond of $10,000 to $35,000, based on Arizona business volume, which includes collecting from debtors who live in Arizona. Re-verified 2026-10-27. Source: A.R.S. §§ 32-1021, 32-1055(A) |
| Medical debt protections | Interest on medical debt, including judgments on medical debt, is capped at the lesser of 3% a year or the weekly average one-year Treasury yield for the week before the consumer was first billed. The general wage, homestead and vehicle protections also apply. Re-verified 2026-10-27. |
| Interest rate limits | Without a written agreement, interest is 10% a year. Interest on a judgment is the lesser of 10% or the prime rate plus 1%, fixed when the judgment is entered, unless a written agreement sets a different lawful rate. Judgments on medical debt are capped at the medical-debt rate (3% or less). Re-verified 2026-10-27. Source: A.R.S. § 44-1201(A)-(B) |
Where to get help in Arizona
- Arizona Attorney General, Consumer Protection (collection agency licensing: Arizona Department of Insurance and Financial Institutions)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Arizona?
6 years for a debt based on a written contract signed in Arizona. If another state's limitations period conflicts, Arizona's 6-year rule applies to these debts.
How long can a creditor sue on a credit card debt in Arizona?
Credit card debt has 6 years under the same statute as written contracts. Debts not evidenced by a written contract (such as oral agreements) and stated or open accounts have 3 years.
Does making a payment restart the statute of limitations in Arizona?
Once a claim is time-barred, an acknowledgment that the debt is owed revives it only if the acknowledgment is in writing and signed by the debtor.
How long does a court judgment last in Arizona?
A judgment can be enforced for 10 years after it is entered. It can be renewed by affidavit, or by a lawsuit brought on it, within each 10-year period; each renewal gives another 10 years.
How much of my wages can be garnished in Arizona?
For ordinary consumer debts, no more than the lesser of 10% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 60 times the highest applicable federal, state or local minimum hourly wage. This is stricter than the federal limit. The court may reduce the amount further on clear and convincing evidence of extreme economic hardship. Support orders and tax debts follow different rules.
How much money in a bank account is protected from creditors in Arizona?
$5,000 held in a single account at any one financial institution is exempt, adjusted every January 1 for inflation beginning in 2024. The exempt amount is still subject to the bank's normal service charges.
What is the homestead exemption in Arizona?
Up to $400,000 of equity in a home the debtor lives in (house, condominium or cooperative, or a mobile or manufactured home and the land under it). Only one homestead per person or married couple. The amount is adjusted every January 1 for inflation, beginning in 2024. The exemption also protects identifiable cash proceeds from the sale of the home for up to 18 months.
Can a creditor take my car in Arizona?
Equity in one motor vehicle up to $15,000, or $25,000 if the debtor or a dependent has a physical disability. The amounts are adjusted every January 1 for inflation, beginning in 2024.
What debt collection practices are illegal in Arizona?
Arizona's collection agency law (A.R.S. Title 32, Ch. 9) makes it unlawful to run a collection agency without a license and sets rules for licensees, such as not advertising a debt for sale to pressure payment and accounting for money collected. Debtor-facing conduct is otherwise governed mainly by the federal FDCPA and Arizona's Consumer Fraud Act.
Do debt collectors need a license in Arizona?
Yes. A person may not conduct a collection agency in Arizona without a license from the Department of Insurance and Financial Institutions. Applicants must file a financial statement and a bond of $10,000 to $35,000, based on Arizona business volume, which includes collecting from debtors who live in Arizona.
What protections apply to medical debt in Arizona?
Interest on medical debt, including judgments on medical debt, is capped at the lesser of 3% a year or the weekly average one-year Treasury yield for the week before the consumer was first billed. The general wage, homestead and vehicle protections also apply.
What is the maximum legal interest rate in Arizona?
Without a written agreement, interest is 10% a year. Interest on a judgment is the lesser of 10% or the prime rate plus 1%, fixed when the judgment is entered, unless a written agreement sets a different lawful rate. Judgments on medical debt are capped at the medical-debt rate (3% or less).
How do I respond to a debt collection lawsuit in Arizona?
Many debt cases are filed in Justice Court. In a small claims case (up to $5,000), the defendant must file a written answer and pay the answer fee within 20 days after service. A defendant who does not answer risks a default judgment.
How do I stop a garnishment or claim an exemption in Arizona?
A debtor who claims an exemption from a garnishment files a written objection and request for hearing with the court, generally within 10 days after receiving the garnishee's answer (or, for wages, the nonexempt earnings statement), and delivers copies to all parties. For bank accounts and other non-wage garnishments, the hearing must start within 5 days after the request (not counting weekends and holidays) and be held no later than 10 days after the request unless the debtor asks for a continuance; for wage garnishments, the hearing must be held no later than 15 days after the court receives the request.
Which bankruptcy exemptions can I use in Arizona?
Arizona has opted out of the federal exemptions. Arizona residents must use Arizona's exemptions in bankruptcy.
Debt & Collections in other states
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.