Arizona Wage Garnishment Law
If you are behind on your bills or find yourself in debt to various creditors, you may find yourself subject to wage garnishment. Arizona, like most states, has many laws and regulations that govern this process. It is important to understand these wage garnishment rules because it can have a dramatic effect on your income and quality of life. A better understanding of the wage garnishment process will not only make you more aware of your rights but can also save you money
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Definition
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Wage garnishment is defined by Credit Resource Finder website as a process through which an employer withholds a certain amount out of a person's paycheck to pay for debts he owes to other parties. Credit Resource Finder highly recommends that a person about to have his wages garnished contact the other party and work out a deal because wage garnishments are very difficult to get out of once levied.
Process
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In order for a creditor to obtain a wage garnishment, it must first file a lawsuit that complains about unpaid bills. Once the complaint is filed, the court will issue a summons to the defending party that will state the amount of time from the delivery of the summons that the defendant has to reply to the court. Failure to respond will result in an automatic default for the defendant. Otherwise, the court will issue a judgment and assess the specifics of repayment.
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Application Submission
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Once it has been decided a wage garnishment be put in place, the creditor must submit an application and affidavit to the court. The court will then issue a Writ of Garnishment to the defendant's employer. According to Arizona state law, no notice needs to be given to the employer but the defendant must be given a copy within three days of his employer being served. From that point on, a predetermined amount of each paycheck will be garnished and given to the creditor until the debt has been fully repaid.
Arizona Specific Laws
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In Arizona, a creditor may garnish no more than 25 percent of a person's earnings, although the court has the authority to reduce the amount to 15 percent depending on the circumstances. The Fair Debt Collection website points out that in relation to wage garnishment, earnings is a broad term that includes all forms of compensation. The formula for determining the exact amount a person must pay each month is a bit complex.
First, determine the federal minimum wage for a payroll period and subtract a person's disposable earnings. That amount is then compared to 25 percent of net earnings and the higher of the two is used for the rest of the process. Finally, any other court ordered levies or wage deductions are subtracted and the remaining balance is the amount to be garnished.
There is also a statute of limitations for wage garnishment in Arizona. According to the BCS Alliance it is 3 years for open accounts (credit cards),
6 years for written contracts (4 years if outside the state), 5 years for domestic judgments (can be renewed indefinitely), and 4 years for foreign judgments.
Misconceptions
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While in most circumstances wage garnishment is limited to 25 percent, there are instances in which it can be higher. One such example is wage garnishments for child support. According to the U.S. Department of Labor, 50 percent to 60 percent of an employee's disposable earnings can be garnished for child support if the employee is supporting a current spouse or child. Since there are many factors that can effect wage garnishment from state to state, the Labor Department recommends that people check with local authorities for a complete understanding of applicable laws.
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References
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