How to Stop Wage Garnishment in Arizona (4 Legal Options)

Arizona law caps most wage garnishments at 10% of your weekly take-home pay. That's lower than the federal 25% limit, but it still hurts when you're already behind on bills.

If a creditor already has a court judgment, they can start the garnishment process within weeks. Your employer gets an order, and suddenly 10% of every paycheck disappears until the debt is paid. For someone earning $600 a week after taxes, that's $60 gone before you see it.

You have options. Some stop garnishment immediately. Others prevent it from starting. Here's what works in Arizona.

Arizona's Wage Garnishment Rules: What Creditors Can Take

Arizona Revised Statutes § 33-1131 sets two limits. Creditors can garnish the lesser of:

• 10% of your weekly disposable earnings, or
• The amount your disposable earnings exceed 60 times the federal minimum wage ($7.25/hour, so $435/week).

Disposable earnings mean what's left after mandatory deductions: federal and state taxes, Social Security, Medicare. It includes wages, bonuses, commissions, and even retirement distributions if you're receiving them as income.

Run the math on both formulas. If you earn $800/week after taxes, 10% is $80. The alternative calculation: $800 minus $435 equals $365. The creditor takes the smaller number, so $80.

If you earn $500/week after taxes, 10% is $50. But $500 minus $435 is only $65. Again, they take $50.

Federal wage garnishments for child support, student loans, or back taxes follow different rules and can take more. This guide covers private debt: credit cards, medical bills, personal loans.

Four Ways to Stop Wage Garnishment in Arizona

1. Challenge the Garnishment Order (If You Have Grounds)

You get 10 days after receiving the garnishment notice to file an objection with the court. This isn't a general "I can't afford it" appeal. Arizona law protects specific income types and situations.

Valid grounds for objection:

• The debt is enrolled in a qualified debt counseling program (more below).
• The income being garnished is exempt (Social Security benefits, disability, unemployment, workers' comp).
• The creditor is taking more than the legal limit.
• You already paid the debt or the judgment amount is wrong.
• The garnishment causes extreme hardship that makes basic necessities impossible.

File your objection at the court that issued the writ. You'll attend a hearing where a judge reviews your evidence. Bring bank statements, pay stubs, the debt counseling agreement, or whatever proves your case.

Miss the 10-day window and you lose the right to object. The garnishment continues until the debt is satisfied.

2. Enroll in a Qualified Debt Counseling Program

Arizona Revised Statutes § 12-1598.10(B) blocks wage garnishment if your debt is part of a debt consolidation or settlement program at the time the creditor files for garnishment.

Requirements under § 12-1598.07:

• The program must be operated by a licensed nonprofit credit counseling agency.
• You must have a written agreement in place before the garnishment order.
• The agreement must include the specific debt the creditor is trying to collect.

This protection isn't automatic. You still file an objection and prove the debt qualifies. But if your paperwork is in order, the judge will stop the garnishment.

Work with a counselor before the lawsuit reaches judgment if possible. Once the creditor wins in court, you're racing the garnishment clock.

3. Negotiate a Settlement (Before or After Judgment)

Creditors want money, not court hassles. Many settle for 40-60% of the balance if you can pay a lump sum or set up a payment plan they control.

Before judgment, you have leverage. The creditor hasn't won yet and might accept less to avoid more legal costs. After judgment, they have the upper hand, but wage garnishment is slow. A $5,000 debt at $80/week takes 62 weeks to collect. If you offer $2,500 today, they might take it.

Get any settlement in writing before you pay. The agreement should state the exact amount, the payment schedule, and that the debt will be marked "paid" or "settled" once you complete it. If you're paying a lump sum, request a dismissal of the judgment.

Some creditors sell old debts to collection agencies for pennies on the dollar. These buyers often settle for even less because they're already profitable at 30-40% of the balance.

Use Talk About Debt's screener to see if settlement makes sense for your situation, or if you need a more comprehensive solution like bankruptcy.

4. File for Bankruptcy

Bankruptcy triggers an automatic stay that stops wage garnishment immediately, usually within 24-48 hours of filing. The stay also halts lawsuits, collection calls, and foreclosures.

Chapter 7 wipes out most unsecured debt (credit cards, medical bills, personal loans) in 3-4 months. You keep exempt property, which in Arizona includes your home equity up to $250,000, one vehicle up to $6,000, household goods, and retirement accounts.

Chapter 13 sets up a 3-5 year repayment plan based on your income. You pay what you can afford, and the rest of qualifying debt is discharged at the end. This works if you're behind on a car loan or mortgage and need time to catch up.

Bankruptcy isn't right for everyone. It damages your credit for 7-10 years and costs $300-$400 in filing fees plus attorney fees if you hire help. But if you're facing multiple garnishments, lawsuits, or debts you'll never realistically pay off, it's often the fastest way out.

You can file on your own using Talk About Debt's bankruptcy filing tool, which walks you through the forms and exemptions for Arizona.

What If the Garnishment Already Started?

Your employer can't refuse the court order. Once they receive the writ, they must start withholding your wages. But the garnishment doesn't lock in forever.

You can still file an objection if you're within 10 days of the notice. If you're past that deadline, your remaining options are settlement or bankruptcy. Both can stop an active garnishment, though settlement requires the creditor's cooperation.

Bankruptcy stops it automatically. The day you file, your attorney (or you, if filing pro se) notifies the creditor and the court. The garnishment ends, and any wages withheld but not yet sent to the creditor are returned to you.

What About Bank Levies?

Creditors with a judgment can also freeze and seize money from your bank account. This is called a bank levy or attachment. It's separate from wage garnishment and follows different rules.

Arizona exempts up to $300 in your bank account (or $6,000 for a family). Certain deposits are fully exempt: Social Security, disability, child support, unemployment benefits. If the creditor levies these funds, you file a claim of exemption to get the money back.

The same protections that stop wage garnishment (debt counseling program, bankruptcy) also stop bank levies. But you need to act before the levy happens, or at least before the bank releases the funds to the creditor (usually 5 business days after the freeze).

Steps to Take Right Now

If you're already in court or facing garnishment:

1. Check the garnishment notice date. You have 10 days to object. Mark the deadline on your phone.
2. Pull your last three pay stubs. Verify your employer is withholding the correct amount. Mistakes happen.
3. List your income and expenses. Know what you can afford to offer in settlement, or whether you qualify for bankruptcy.
4. Contact the creditor or their attorney. Ask if they'll settle. Get the name and direct number of the person who can approve a deal.
5. Consider filing Chapter 7 or 13. If you owe more than $10,000 or face multiple garnishments, bankruptcy is often cheaper and faster than fighting case by case.

If you haven't been sued yet but you're drowning in debt, respond to any lawsuit the moment you're served. You typically have 20 days in Arizona. Filing an answer doesn't make the debt go away, but it forces the creditor to prove their case. Many don't have the right documentation, especially if the debt was sold to a collection agency.

The Bottom Line

Arizona's 10% wage garnishment cap is better than most states, but it's still 10% you need for rent, groceries, and gas. You can stop it by objecting within 10 days, enrolling in a qualified debt counseling program, negotiating a settlement, or filing bankruptcy. The best option depends on how much you owe, how many creditors are circling, and whether you can realistically pay the debt down on your current income.

Don't ignore the garnishment notice. The 10-day objection window is firm, and once it closes, your options narrow. If you're unsure where you stand, use Talk About Debt's free screener to see which debt relief path makes sense for your situation.