Garnishment
If you borrow money and do not pay it back, the person or business (creditor) might take you to court to get the money you owe. The court can order that money from your bank account, your property, or part of your income be taken from you to repay the debt. This is called a garnishment.
Losing some of your pay or access to your bank account can make a bad financial situation even worse.
If someone sues you for money, you may want to:
-
Seek legal advice.
Garnishment laws are complicated and cases can move quickly. An attorney can help you understand your rights and options and act fast to protect your income and assets.
Contact the creditor.
Try to negotiate a payment plan or settle the debt without going to court.
Explore debt management options.
A credit counselor may help you develop a budget and manage your debt. If you are unable to resolve the debt, bankruptcy might be an option.
Types of garnishment
In most cases, the person or business you owe money to (a creditor) must win a judgment against you in court before they can ask for a garnishment. There are two types of garnishments:
Earnings
A garnishment of earnings (your income or pay) is an order requiring that the company you work for withhold a certain amount of money from your paycheck and send it to the person or business you owe money to.
Non-Earnings
A garnishment of non-earnings (money or property) is an order allowing your creditor to seize personal property held by someone else like money in your bank account, tax refunds, or other money you are owed but not yet paid.
Certain assets or income are protected from garnishment under Arizona law, called “exemptions.”
Common exemptions in Arizona include:
- Homestead: Protects equity in your primary home (up to $400,000)
- Personal Property: Protects household furniture, goods, and appliances (up to $15,000)
- Motor Vehicle: Protects the equity in one motor vehicle (up to $15,000, or $25,000 if you or a dependent have a physical disability)
- Bank Account: Protects up to $5,000 in a single financial account.
Other Exemptions:
- Certain pension benefits and retirement funds
- Certain government benefits like Social Security, Cash Assistance (TANF), Supplemental Security Income (SSI, and Veteran’s administration (VA), Unemployment (UI), and disability benefits.
- Worker’s compensation and some insurance proceeds.
How garnishment works
Before a creditor can request a garnishment, in most cases, they must sue you in court and win. They must ask you to pay the money judgment from that case.
Your creditor asks the court for garnishment.
If you do not pay and do not agree to partial payments for the judgment, the creditor can ask the court to take money from your wages or bank accounts as a garnishment. The creditor files a request for garnishment with the court and sends copies to your employer or your bank and you.
The garnishee responds to the request.
The garnishee (like your employer or bank) must confirm that:
- You work for them, or you have an account with them.
- They owed or held your money when they got the garnishment request.
- For wage garnishment, that your employer will still pay you in the next 60 days.
You can object to the garnishment or garnishment amount.
You can object if you think:
- The garnishment is unfair. You can object if the debt is part of a valid debt settlement or consolidation plan. You can object if the garnishment would cause you extreme financial hardship and request a lower garnishment amount.
- The amount you owe or amount to be garnished is wrong. This might happen when certain property or money is exempt from garnishment.
- There was a mistake. You can object if you did not receive proper notice of the garnishment or if the creditor does not have the right to garnish your wages or money.
If you object, you must file your objection with the court within 10 days of getting the garnishment notice. Your objection must be in writing and using the court’s form. You can get forms online or at your court location. The court will charge a fee to file your objection, which might vary by court.
After you file your objection, you must deliver copies of your objection and request for a hearing to all creditors involved in the case.
The court will schedule a hearing within 5 days of your request (not counting weekends and holidays).
At your hearing, you will have the opportunity to present evidence to the judge to support your claims. Evidence might include copies of the loan or credit agreement, proof of payments you made, or other documentation related to why your income or assets are exempt.
The court reviews the garnishee response and objection.
If the court agrees with your objection, or if the garnishee says they do not hold your money (like if you no longer work there or don’t have a bank account there), the court will end the garnishment request, known as a “discharge of a garnishee.”
The court approves the garnishment.
When the court gives a garnishment order, it usually allows the creditor to take the amount of money you owe, plus extra for interest, fees, and costs for collecting the debt.
For garnishment of earnings:
The court will order your employer to send your non-exempt earnings to the creditor. Your employer must withhold a specific amount from each paycheck. Your employer sends the money directly to the creditor. Until you pay the full amount of the judgment, the court order will require that money comes out of your paycheck.
For garnishment of non-earnings:
The court will not order a garnishment of more property or money than you owe. The garnishee must give your non-exempt property to the sheriff or constable with the right papers. The court may order you or the garnishee to sign documents to transfer the property.
Legal Limits on Garnishment
Some of your wages, benefits, and money in your bank account is protected from garnishment by federal and state laws. These protections (called “exemptions”) make sure you have enough money to live on.
How much of my paycheck can be garnished under Arizona law?
In Arizona, creditors can only take up to 10% of your leftover money after taxes or they can take 60 times the highest minimum wage (federal, state, or local), whichever amount is smaller.
This does not apply to the money you owe for child support or other support payments.
For example, if you were paid minimum wage in 2026 and your monthly pay after taxes is $4,500, creditors can garnish:
10% of $4,500 = $450 or
2026 AZ minimum wage$15.15 x 60 = $909
In this example, $450 is less than $909 so a creditor can only garnish $450 of your monthly pay.
Remember - Arizona’s minimum wage changes each year. For the current minimum wage, check with the Industrial Commission of Arizona.
What if I cannot afford the basics of life if my paycheck is garnished?
If you can prove to the court that the amount of the garnishment will cause very serious money problems for you or your family, the court may lower the garnishment amount.
You need to show convincing evidence that paying would cause extreme hardship. If the court agrees with you, the court can reduce the amount to whatever the law allows.
Can my Social Security benefits be garnished?
Usually, businesses or private (non-government) creditors cannot garnish Social Security benefits.
1) unpaid federal taxes and 2) unpaid child support or alimony are the main reasons why creditors can garnish your federal benefits.
What other federal benefits can be protected from garnishment?
Other federal benefits usually protected from garnishment include:
- Supplemental Security Income (SSI) benefits
- U.S. military services member or veteran benefits like assistance through Veterans Affairs (VA), servicemember pay, and military annuities and survivor benefits.
- Civil service and federal retirement and disability benefits
- Federal student aid
- Railroad retirement benefits
- Financial assistance from FEMA (Federal Emergency Management Agency)
When your bank receives a court order to garnish money in your account, your bank must look at your account history to see if you received federal benefits by direct deposit in the last two months. The bank must leave two months’ worth of benefits in your account for you to use.
This topic can be complicated. You may want to talk to a legal professional for help.
This website shares general legal information. Some content may be simplified or may not reflect recent changes in law. If you need advice for your specific situation, you should talk to a legal professional.
This content was last edited on Oct 1, 2025.