Arizona: Credit, Debt & Bankruptcy

Arizona looks like an ordinary state on paper until you read two of its statutes. One caps wage garnishment far below the federal ceiling. The other protects a very large amount of home equity and raises that number every January.

Both are state law, and both change what a judgment is actually worth to a collector. Federal rules like the FDCPA and FCRA still set the floor, but the numbers that decide an Arizona case come from Arizona.

Your official Arizona resources

These are the state-level starting points most Arizonans dealing with debt need.

• AZLawHelp.org — Arizona's legal information and legal aid portal, with a Money and Debt section. It lists 866-637-5341 to check whether you qualify for free or reduced-fee help. The site is run as a joint effort led by Community Legal Services, DNA People's Legal Services, Southern Arizona Legal Aid, the William E. Morris Institute for Justice, and the Arizona Bar Foundation.
• Arizona Attorney General — File a Consumer Complaint — the state's Consumer Information and Complaints Unit reviews complaints about unfair or deceptive sales and ads.
• State Bar of Arizona — Public Service Center — the bar's own FAQ on finding a lawyer, including which county referral services exist and what they charge.
• U.S. Bankruptcy Court, District of Arizona — one federal district covers the whole state. The court says it has offices in Phoenix, Tucson, and Yuma. It hears cases in those cities as well as Flagstaff and Bullhead City.

If you need	Official starting point
Plain-language help with a debt problem	AZLawHelp.org.
To report a collector or a credit repair company	Arizona Attorney General complaint portal.
A lawyer referral or a low-cost consultation	State Bar of Arizona Public Service Center FAQ.
Bankruptcy forms and local rules	District of Arizona court site.

Debt lawsuits in Arizona

A collector that sues and wins gets a judgment, and a judgment is what makes garnishment possible. Everything downstream depends on whether the case is answered.

This guide does not state a single statewide number of days to respond. Arizona runs consumer debt cases through more than one kind of court, and the deadline is printed on the summons and complaint that were actually served. That document controls.

Missing the deadline lets the creditor ask for a default judgment. Answering instead forces the creditor to prove the debt is real, correctly calculated, and still within the limitations period.

Start with what to do when you are sued for a debt and the debt lawsuit response checklist. Then confirm the exact deadline and the right court with the clerk's office or with legal aid through AZLawHelp.org.

Statute of limitations basics

Arizona splits the clock by how the debt was documented, and it names credit cards specifically.

A.R.S. § 12-548 gives six years for an action on a debt evidenced by a contract in writing executed in Arizona, or by a credit card. The statute points to the credit card definition in A.R.S. § 13-2101.

A.R.S. § 12-543 gives three years for a debt not evidenced by a written contract, and for stated or open accounts. It adds a wrinkle: on a stated or open account, no item is barred so long as any item on that account was incurred within the three years before the suit was filed.

Section 12-548 also carries a choice-of-law rule that most states do not have. Subsection B says that if there is a conflict between another jurisdiction and Arizona over the limitations period for a debt action described in subsection A, the Arizona section applies. That matters because credit card agreements often name another state's law.

An expired period does not apply itself. It is generally a defense a person has to raise. Read how the statute of limitations on debt works before making any decision about an old account. This guide does not state an Arizona rule for what restarts a clock — confirm that with an attorney.

Wage garnishment and protected income

Arizona protects far more of a paycheck than federal law requires.

Federal law in 15 U.S.C. §1673 lets a creditor reach up to 25 percent of disposable earnings. The other federal limit is the amount above 30 times the federal minimum hourly wage, and the smaller one wins.

A.R.S. § 33-1131 cuts both numbers. Under subsection B, a creditor may reach no more than 10 percent of disposable earnings for a workweek. The other Arizona limit is the amount by which those earnings exceed 60 times the applicable minimum hourly wage. Again, the smaller figure wins.

The statute defines the applicable minimum hourly wage as the highest of the federal, state, or local minimum wage. In a city with its own higher minimum, that lifts the protected floor further.

Two limits on that protection sit in the same statute. Support orders are handled apart, with one-half of disposable earnings exempt. And subsection D says the exemptions do not apply to a Chapter 13 bankruptcy court order, or to a debt for any state or federal tax.

A low garnishment cap is not the same as safety. A judgment can still reach money in a bank account, and it can attach to property. Social Security and certain other federal benefits are generally protected from commercial garnishment in every state. Our wage garnishment guide covers the federal baseline and how exemption claims generally work.

Bankruptcy in Arizona

Bankruptcy is federal, but it runs through a local court. Arizona is a single district: the U.S. Bankruptcy Court for the District of Arizona. The court's site posts local rules, forms, filing locations, and self-representation information.

Arizona is an opt-out state. A.R.S. § 33-1133 says that in accordance with 11 U.S.C. § 522(b), residents of this state are not entitled to the federal exemptions in 11 U.S.C. § 522(d). Arizona filers use Arizona's exemptions. The same section adds that nothing in the article displaces other laws that give a debtor additional or greater protection.

That makes Arizona's homestead exemption central. A.R.S. § 33-1101 protects home equity not exceeding $400,000 in value. Where two people hold the same residence, the total for both may not exceed that same figure. Subsection D then adds a raise every January 1 since 2024, based on the consumer price index and rounded up to the nearest $100.

So the printed $400,000 is a base, not today's number. The current figure is higher, and it is not shown on the statute page. Subsection F adds that in a bankruptcy case, the amount is first set as of the date the petition is filed. Confirm the live number with the court, legal aid, or a bankruptcy attorney.

For the big picture, start with our bankruptcy hub, the Chapter 7 guide, and filing without a lawyer. If bankruptcy is one option among several, debt relief options compares the paths.

Free and low-cost legal help

Many Arizonans qualify for free help and never use it. AZLawHelp.org is the front door: it lists 866-637-5341 and an online application to check eligibility for free or reduced-fee legal help, organizes material by topic including Money and Debt, and points to AZCourtHelp.org for court forms, court locations, and live chat.

The State Bar's own FAQ tells people who cannot afford an attorney to start at AZLawHelp.org. Nationally, the LSC legal aid finder covers every state.

Common mistakes to avoid

A few errors show up again and again.

• ✕Budgeting around the federal 25 percent garnishment figure. Arizona caps process against disposable earnings at 10 percent, or the amount above 60 times the applicable minimum hourly wage, whichever is less.
• ✕Assuming an old credit card is on a short clock. A.R.S. section 12-548 puts credit card debt on a six-year limitations period.
• ✕Accepting another state's limitations period because the cardholder agreement names it. Section 12-548 says the Arizona section applies when there is a conflict.
• ✕Treating the printed $400,000 homestead figure as current. The statute requires an annual inflation adjustment every January 1 since 2024.
• ✕Expecting to pick the federal bankruptcy exemptions. A.R.S. section 33-1133 says Arizona residents are not entitled to them.
• ✕Paying a credit services organization before the work is done. Arizona only allows that if the company holds the surety bond required by section 44-1708.

Credit repair companies in Arizona: registration, bond, and how to check

Arizona regulates credit repair firms as credit services organizations under A.R.S. §§ 44-1701 through 44-1712. There is no state registration or license in that article, so there is no Arizona credit repair registry to search. What there is instead is a bond, and it is tied to how much the company charges.

A.R.S. § 44-1703 bars a credit services organization from charging or receiving any money before full and complete performance of the agreed services, unless it has obtained a surety bond under § 44-1708.

A.R.S. § 44-1708 sets that bond at 5 percent of the total fees the company charged buyers during the previous twelve months, but never less than $5,000 and never more than $25,000, recalculated once a year. A copy of the bond is filed with the Arizona Corporation Commission, the bond runs in favor of the state for anyone damaged by a violation, and a buyer can sue the organization and the surety directly.

Contracts are covered too. A.R.S. § 44-1706 requires a written, dated, signed contract. It must carry a clear notice that the buyer may cancel before midnight of the third day after the transaction. A detachable Notice of Cancellation form goes with it, in duplicate, and a refund is due within fifteen days. Before any contract or payment, § 44-1704 requires a written information statement. Section 44-1705 says that statement must name the surety company and explain the right to sue on the bond.

How to check a company: because there is no registry, ask for the information statement and the surety company's name and address, which the statute requires. Then search the CFPB complaint database.

How to complain: the Arizona Attorney General's consumer complaint portal, which enforces the state Consumer Fraud Act, A.R.S. § 44-1521 et seq., and the CFPB. The Attorney General's page also notes that a private citizen may bring a Consumer Fraud Act action within one year from the date the claim arises.

The federal floor everywhere: the Credit Repair Organizations Act (15 U.S.C. §1679) bans advance fees, requires a written contract, and gives a three-business-day right to cancel. Accurate, timely items cannot be removed by anyone. How to vet an offer is on credit repair services.

Finding a bankruptcy attorney in Arizona

Every Arizona consumer case is filed in the same federal district, so there is no district to figure out. The court's site posts local rules, local forms, and pro se information, and it lists where cases are heard across the state.

The State Bar of Arizona says plainly that it cannot provide attorney referrals or legal advice, though its member directory can be searched by name, practice area, or office location and shows discipline history. For an actual referral, the bar points to two county programs: the Maricopa County Bar Lawyer Referral Service at 602.257.4434, which schedules a 30-minute consultation for a $50 fee, and the Pima County Bar Lawyer Referral Service at 520.623.4625, which schedules a 30-minute consultation for a $35 non-refundable fee.

If income is limited, AZLawHelp.org and the LSC legal aid locator are the first stops, and the NACBA member directory lists consumer bankruptcy attorneys by ZIP code. The ordered path and the questions to ask before paying are on how to find a bankruptcy attorney near you.

Frequently asked questions

Can my wages be garnished in Arizona for credit card debt?

Yes, with a judgment, but Arizona takes far less than federal law allows. A.R.S. § 33-1131 caps the part of disposable earnings subject to process at 10 percent for the workweek, or the amount by which disposable earnings exceed 60 times the applicable minimum hourly wage, whichever is less. Federal law permits up to 25 percent, so the Arizona limit is a fraction of the national ceiling.

What is Arizona's statute of limitations on credit card debt?

A.R.S. § 12-548 gives six years for a debt evidenced by a credit card or by a written contract executed in Arizona. A.R.S. § 12-543 gives three years for a debt not evidenced by a written contract and for stated or open accounts, and on those accounts no item is barred so long as any item was incurred within the previous three years.

Can a creditor use another state's statute of limitations in Arizona?

A.R.S. § 12-548(B) says that if there is a conflict between another jurisdiction and Arizona relating to the limitations period for a debt action described in subsection A, the Arizona section applies. That is worth knowing because cardholder agreements frequently name the law of another state.

If Arizona caps garnishment at 10 percent, is a judgment harmless?

No. A judgment is what lets a creditor reach money at all, and it can reach a bank account or attach to property rather than a paycheck. A.R.S. § 33-1131 also carves out support orders, which use a one-half exemption, and says its exemptions do not apply to Chapter 13 bankruptcy court orders or to state or federal tax debts.

What is Arizona's homestead exemption?

A.R.S. § 33-1101 protects home equity not exceeding $400,000 in value, with the same total cap where two people hold one residence. Subsection D requires an annual cost-of-living adjustment every January 1 beginning in 2024, rounded up to the nearest $100, so the operative amount today is higher than the printed base and should be confirmed with the court or an attorney.

Can Arizona bankruptcy filers use the federal exemptions?

No. A.R.S. § 33-1133 says that in accordance with 11 U.S.C. § 522(b), residents of Arizona are not entitled to the federal exemptions provided in 11 U.S.C. § 522(d). The same section adds that nothing in it displaces other laws giving a debtor additional or greater protection.

How long do I have to respond to a debt lawsuit in Arizona?

This guide does not state a single statewide number of days. Arizona runs consumer debt cases through more than one kind of court, and the deadline is printed on the summons and complaint that were actually served. Confirming that date with the clerk's office matters more than any general rule.

Where do I find legal aid in Arizona?

AZLawHelp.org is the statewide portal, run as a collaboration led by Community Legal Services, DNA People's Legal Services, Southern Arizona Legal Aid, the William E. Morris Institute for Justice, and the Arizona Bar Foundation. It lists 866-637-5341 and an online application to check eligibility for free or reduced-fee help, and points to AZCourtHelp.org for forms and court information.

Do credit repair companies have to be registered in Arizona?

No. Arizona's credit services organization article, A.R.S. §§ 44-1701 through 44-1712, has no registration or license, so there is no state registry. It does bar any fee before the work is fully done, unless the company holds the surety bond in § 44-1708. That bond is 5 percent of the prior year's fees, never below $5,000 or above $25,000, with a copy filed with the Corporation Commission. Section 44-1706 also requires a written contract with a three-day right to cancel.

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