Arizona Laws on Wage Garnishments, Statute of Limitation on Debt, and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: Arizona does not have a wage garnishment law. The Federal law applies
MAXIMUM INTEREST RATES
Legal: 10% Judgment: 10% or contractual
STATUTE OF LIMITATIONS ON DEBT COLLECTION
Open Account (credit card): 3 years
Written Contract: 6 years (4 years if outside state)
Domestic Judgment: 5 years (can be renewed indefinitely)
Foreign Judgment: 4 years
BAD CHECK LAWS: Twice the amount of check, litigation costs, including reasonable attorney's fees.
ARIZONA BANKRUPTCY PROPERTY EXEMPTIONS
Below is a list of the property that residents of Arizona can keep when filing bankruptcy. Arizona residents cannot use the federal exemptions, but can use the state exemptions below in conjunction with the federal non-bankruptcy exemptions
Real Estate: Real estate, apartment, mobile home used as residence up to $100,000, sale proceeds are exempt for 18 months or until new home purchased, whichever occurs first (must record homestead declaration) [33-1101 and 33-1102]
Personal Property: Bible, bicycle, sewing machine, typewriter, burial plot, rifle, pistol or shotgun, up to $500 total [33-1125]; books to $250, clothing to $500, wedding and engagement rings to $1,000, watch to $100, pets, horses, milk cows and poultry to $500, and musical instruments to $250 [33-1125]; health aids, unlimited amount [33-1125]; motor vehicle to $1,500 (up to $4,000 if disabled) [33-1125(B); bank deposit to $150 in one account (must file notice with bank) [33-1126(A)(7)]; proceeds for sold or damaged exempt property up to exemption amount [33-1126(A)(4) and (6)]; food, fuel and provisions for 6 months [33-1124]; arms, uniforms and equipment required for military use, unlimited amount [33-1130(3)]; appliances, furniture, household goods, paintings up to $4,000 [33-1123]; farm machinery and equipment, utensils, seed, feed, grain and animals up to $2,500 total [33-1130(2)]; prepaid rent or security deposit up to $1,000 or 1 1/2 times rent, whichever is less, instead of real estate exemption [33-1126(D)]; tools, equipment, instruments and books, except vehicle driven to work up to $2,500 [33-1130(1)]; teaching aids of teacher, unlimited amount [33-1127]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance / Annuities: Group life insurance policy or proceeds, unlimited amount [20-1132]; health, accident or disability benefits, unlimited amount [33-1126(A)(4); life insurance cash value to $1,000 per dependent and $25,000 total [33-1126(A)(6)]; life insurance proceeds to $20,000 if beneficiary is spouse or child (husband and wife may double) [33-1126(A)(1) and 33-1121.01]; fraternal society benefits, unlimited amount [20-877]
Pensions / Retirement Plans: Board of Regents members, unlimited amt [15-1628(l)]; firefighters and police officers, unlimited amount [9-968 and 9-931]; public safety personnel, unlimited amt [38-850(C); state employees [38-792]; rangers, unlimited amount [41-955]; retirement benefits deposited ore than 120 days before filing bankruptcy, unlimited amount [33-1126(C)2]
Public Benefits / Entitlements: Unemployment compensation, unlimited amount [23-783]; workers' compensation, unlimited amount [23-1068]; welfare benefits, unlimited amount [46-208]
Wages: 25% of earned but unpaid wages or pension payments (allowances for low-income debtors) [33-1131]; minor child's earnings, unless debt is for child, unlimited amount [33-1126(A)(2)]
Miscellaneous: Property of business partnership, unlimited amount [29-225]
