Debt Collection Laws in Arizona
If you're dealing with debt collection in Arizona, here's what actually protects you: a cap on how much of your paycheck can be garnished, a base amount of home equity and bank funds creditors can't touch, and a deadline after which a debt lawsuit generally can't succeed. Current as ofJuly 2026 — sourcing for each section is linked below.
How much of my paycheck can be garnished in Arizona?
About 90% of most paychecks is off-limits to creditors in Arizona. A creditor can only take the lesser of 10% of your disposable weekly earnings, or the amount your pay goes over 60 times the minimum wage — one of the strongest paycheck protections in the country, thanks to a 2022 ballot measure (Prop 209, A.R.S. § 33-1131).
Before Prop 209, Arizona matched the federal 25%/30x-minimum-wage formula that most states still use. The ballot measure, branded the 'Predatory Debt Collection Protection Act,' passed with about 72% of the vote and applies to consumer debt broadly — it does not cover child support or spousal support garnishments, which can still reach up to 50% of disposable earnings.
Tier: Meaningfully stricter than the federal formula — see the full 20-state ranking.
Can a creditor take money from my bank account in Arizona?
The first $5,000 in any one bank account is safe from creditors in Arizona — up from just $300 before 2022 reforms, and that number rises a little each year with cost of living.
The $5,000 applies per account per institution rather than as a household-wide cap — spreading money across a couple of banks doesn't multiply the exemption in the way that might suggest, since a creditor pursuing multiple accounts can still reach anything above $5,000 in each one.
Is my home protected from creditors in Arizona?
Up to $400,000 of equity in your home is protected from creditors in Arizona — more than double the old $150,000 limit, raised effective December 2022, and it climbs a bit further each January for cost of living.
The exemption covers a primary residence, condo or co-op, and most mobile or manufactured homes plus the land under them — one exemption per person or married couple, not stackable per spouse.
How long can a debt collector sue me in Arizona?
A collector has 6 years to sue you in Arizona over credit card debt or any other written contract. If there was never a written contract — just a verbal agreement or open account — that window is only 3 years.
| Debt type | Statute of limitations |
|---|---|
| Credit card / written contract | 6 years |
| Oral contract / open account | 3 years |
A 2023 Arizona Court of Appeals decision narrowed how this statute applies to debt that's been sold to a debt buyer, so claims brought by a purchaser of your original account can sometimes raise disputes over which limitations period actually applies.
See how Arizona's 6 years deadline compares to all 20 states.
Does Arizona have its own debt collection law beyond the federal FDCPA?
Arizona doesn't have one single state law dedicated to collector behavior. Instead, deceptive tactics are covered by the state's general Consumer Fraud Act, and third-party collection agencies (not original lenders) have to be separately licensed and bonded by the state.
Original creditors collecting their own debts under their own name are generally exempt from the collection-agency licensing requirement, though a handful of baseline conduct rules still apply to them — the strongest state-law leverage tends to be against genuine third-party collectors and debt buyers rather than the original lender.
Where can I find free or low-cost legal help in Arizona?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in Arizona, a good starting point is the state bar's lawyer referral service or one of the legal aid organizations below — both can point you to self-help court resources even if you don't qualify for free representation.