Arizona Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside Arizona's Statutes Of Limitations. Arizona phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The Arizona Fair Debt Collection Consumer Practices Guide summarizes Arizona's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
Arizona Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under Arizona’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under Arizona Debt Exemption Law!
Arizona Code
Arizona has opted out of federal bankruptcy exemptions, Arizona: Revised Statutes Annotated § 33-1133.
Wages: Arizona Revised Statutes Annotated §§ 33·1131, -1132, 12, 1598.10(8)(5) and (F).
Homestead: Arizona Revised Statutes Annotated §§ 33-1101 through -1104.
Tangible personal property: Arizona Revised Statutes Annotated §§ 33-1121
-1123 through ·1125, -1127 through -1130, -1132.
Benefits, retirement plans, insurance, judgments, and other intangibles:
Arizona Revised Statutes Annotated § 33-1126.
Arizona Debt Statutes of Limitation
Your debt may have expired under Arizona’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the Arizona Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
Arizona Debt Statutes of Limitation
Written contracts: 6 years, runs from date creditor could have sued account.
Oral debts, stated or opens accounts: 3 years.
Actions for fraud or mistake: 3 years from the date of the discovery of the fraud or mistake.
Actions involving fiduciary bonds, out of state instruments and foreign judgments: 4 years. NOTE: Arizona applies its own statute of limitations to foreign judgments rather than that of the state that originally rendered the judgment whether the judgment is being domesticated under the Uniform Enforcement of Foreign Judgments Act or pursuant to a separate action on the foreign judgment.
An Arizona judgment must be renewed within five years of the date of the judgment.
Arizona Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under Arizona’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under Arizona law.
Arizona Wage Garnishment Procedural Requirements
Pursuant to this article after the judgment creditor or a person in his behalf makes an application in writing, a writ of garnishment shall be issued The application shall contain the following: A statement that the applicant is a judgment creditor. A statement that the applicant has good reason to believe that the garnishee is holding nonexempt monies on behalf of the judgment debtor. The amount of the outstanding balance due on the underlying judgment, together with interest and accrued allowable costs, on the date the application is made, and the rate at which interest accrues on that judgment. The address of the garnishee. Arizona. Rev. Statute. Ann. _ 121572.
When the judgment creditor has filed the application, the clerk or justice of the peace shall issue a writ of garnishment of monies or property and a summons directed to the sheriff, constable or any officer authorized by law to serve process in the county where the garnishee is alleged to be, commanding him to immediately summon the garnishee to appear before the court out of which the writ issued within the time specified in the writ to answer the writ. The writ shall state: The amount of the outstanding balance due on the judgment, including accrued interest and allowable costs, as of the date of the issuance of the writ, and the rate at which interest accrues on that judgment. The name and address of the garnishee or his authorized agent. The name and address of the judgment creditor and his attorney, if applicable. The last mailing address of the judgment debtor know to the judgment creditor. The judgment creditor, in the manner required for a summons by rules of the court in civil matters, shall serve on the garnishee two copies of the summons and writ of garnishment, a copy of the underlying judgment, four copies of the answer form, two copies of the notice to judgment debtor and request for hearing form and one copy of the instructions to garnishee provided for in _ 12 1596.
Within three days, not including weekends and holidays, the garnishee shall deliver to the judgment debtor a copy of the summons and writ of garnishment, a copy of the underlying judgment and the notice to judgment debtor and request for hearing form. Arizona. Rev. Statute. Ann. _ 121574.
Note, monies owing to a judgment debtor by a banking corporation or association, savings banks, savings and loan association, credit union, trust company or title insurance company, maintaining branch offices, or credits or other effects belonging to a judgment debtor and in the possession of or under the control of such entity, may be levied upon by serving a copy of the writ of garnishment upon the manager or other officer of such entity, at any office or branch thereof located in the county where such service is made. No garnishment shall be effective as to any debt owing by such entity if the account evidencing such indebtedness is carried at an office or branch other than the office or branch named in the writ and at which service is made or as to any credits or other effects in its possession or under its control at any other office or branch, unless the service of writ is accompanied by a cash tender of twenty five dollars to the garnishee as costs for the search. Upon the payment of the search fee the writ shall be effective as to any debt owing by such entity, if the account evidencing such indebtedness is carried at any office or branch thereof located in the county in which service is made, but shall not be effective as to any debt owing by such entity, if the account evidencing such indebtedness is carried at an office or branch thereof located in a county other than the county in which service is made. Arizona. Rev. Statute. Ann. _ 12 1577.
From and after the service of all documents required to be served pursuant to _ 121574 the garnishee shall not pay to the judgment debtor any monies which are not exempt. Any such payment is void and of no effect as to so much of the monies as is necessary to satisfy the judgment creditor's demand. However, a financial institution shall not withhold from the judgment debtor the amount set forth as exempt pursuant to _ 331125, paragraph 7, unless ordered by the court to do so after a hearing pursuant to _ 121580. Arizona. Rev. Statute. Ann. _ 12 1578.
Actions in garnishment in which an answer has been filed by a garnishee shall not be dismissed except upon notice to the garnishee and an opportunity to be heard upon the question of allowance of garnishee's costs and attorney's fee. Arizona. Rev. Statute. Ann. _ 121582.
When the garnishee is discharged upon his answer, the cost of the proceeding, including reasonable compensation to the garnishee, shall be taxed against the judgment creditor. When there is no written objection to the answer of the garnishee and the garnishee is held on his answer, the above costs shall be taxed against the judgment debtor. Where the answer is objected to in writing the costs shall abide the issue. Arizona. Rev. Statute. Ann. _ 121591.
A bank deposit made in the names of two or more persons shall be subject to garnishment. The answering garnishee shall, upon service of the writ, impound all funds then present in the bank account, and shall promptly notify each person who appears from the business records of the garnishee to have an interest in such bank account in addition to the judgment debtor that such account has been impounded, the name of the judgment creditor and judgment debtor and the court in which the action is pending as Statuted on the writ. The notice may be made personally or by registered mail, postage prepaid, addressed to each such person at his last known address as reflected by the business records of the garnishee. The answer of the garnishee, in such case, shall Statutee under oath the names of all persons who appear from the business records of the garnishee to have an interest in the bank account in addition to the judgment debtor. Upon the filing of the answer the court shall join all persons who appear to have an interest in the bank account in addition to the judgment debtor, as reflected by the answer of the garnishee, and shall proceed to a determination of the interest of the judgment debtor therein. Upon entry of an order based upon such proceeding all impounded funds, except those of the judgment debtor, shall be released by the garnishee. The matter shall otherwise proceed as in any other garnishment action. Arizona. Rev. Statute. Ann. _ 12595.
Under the Arizona Rules of Civil Procedure, "In aid of the judgment or execution, the judgment creditor . . . may obtain discovery from any person, including the judgment debtor, in the manner provided in these Rules or otherwise by law." Arizona. R. Civil. P. 69. Note: Personal property does not include accounts under Arizona. Rev. Statute. Ann. _ 121570.
Deliver means to hand deliver, to mail by regular first class mail to the address which the sender determines through reasonable good faith efforts to be best calculated to reach the recipient in a timely manner, or to serve on a party pursuant to the rules of civil procedure applicable to a summons. Arizona. Rev. Statute. Ann. _ 121570.
Interest Rate at which Judgments Accrue Any judgment shall be at the rate of ten percent per annum. However, a judgment given on an agreement bearing a higher rate not in excess of the maximum permitted by law shall bear the rate of interest provided in the agreement, and it shall be specified in the judgment. Arizona. Rev. Statute. Ann. _ 441201. Applicable Forms The court or justice of the peace shall provide to the parties, at no charge, copies of the following documents required to be delivered pursuant to _ 121574:
The notice to judgment debtor and request for hearing form as prescribed by the supreme court but necessarily including an explanation of the judgment debtor's rights and responsibilities relating to the garnishment procedure, including information concerning exemption rights, grounds for objecting to the writ, and the objection and hearing procedures and a form on which the judgment debtor may request a hearing. The answer form. The instructions to garnishee. A party to a garnishment proceeding may use documents other than those provided, if such documents are substantially similar to those prescribed by the supreme court. Arizona. Rev. Statute. Ann. _ 121596.
Arizona (Debt Collector) Call Recording Law
Under Arizona State and Federal Call Recording Laws, you could record the actual recorded conversation with a debt collector in your efforts to stop debt collectors from calling! Arizona is a one party consent state, meaning only the permission of one person on the call is necessary to record. YOU ALONE can be considered the one party to give consent, thus you do not need a debt collectors permission to record the phone conversation in the state of Arizona.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.
