Wage Garnishment and Bankruptcy in Phoenix

Arizona's wage garnishment rules are standard, but the state's relatively high minimum wage ($14.70/hr in 2026) means the 30x minimum wage threshold provides more protection than in states with lower minimums. Filing bankruptcy in Phoenix stops garnishment immediately and can eliminate the underlying debt.

This page provides general educational information, not legal advice. Consult a qualified attorney for advice about your specific situation.

Arizona Wage Garnishment Law

Arizona allows creditors to garnish the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage ($7.25/hr). Arizona minimum wage is $14.70/hr (2026), so the 30x calculation uses the higher state minimum wage for some protections. Bank accounts can also be garnished, though $300 in a single account is exempt.

How Bankruptcy Stops Garnishment

Filing bankruptcy in the D. Ariz. triggers the automatic stay which immediately stops all wage garnishment.

  • Day 1: You file your petition. The automatic stay takes effect immediately.
  • Day 1-3: Your attorney notifies the garnishing creditor and your employer.
  • Day 3-7: Your employer stops withholding from your paycheck.
  • Discharge: The underlying debt is discharged, eliminating the garnishment permanently.

Recovering Garnished Wages

If wages were garnished within 90 days before filing, those funds may be recoverable as a preference payment under 11 U.S.C. section 547. File bankruptcy as soon as possible after garnishment begins to preserve this option.

Types of Garnishment in Arizona

Debt TypeCan Garnish Wages?How Much?
Credit cards / Medical billsYes (with judgment)Up to 25% of disposable earnings
Child supportYesUp to 50-65% of disposable earnings
Federal student loansYesUp to 15% of disposable earnings
Federal tax debt (IRS)YesVaries based on exemptions claimed
State tax debtYesVaries

Frequently Asked Questions

Can creditors garnish my wages in Arizona?

Arizona allows creditors to garnish the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage ($7.25/hr). Arizona minimum wage is $14.70/hr (2026), so the 30x calculation uses the higher state minimum wage for some protections. Bank accounts can also be garnished, though $300 in a single account is exempt.

Does bankruptcy stop wage garnishment in Phoenix?

Yes. Filing bankruptcy in the D. Ariz. triggers the automatic stay under 11 U.S.C. section 362, which immediately stops all wage garnishment.

Can I get back wages that were already garnished?

If wages were garnished within 90 days before filing, they may be recoverable as a preference payment under 11 U.S.C. section 547.

What debts can trigger wage garnishment in Arizona?

In Arizona, most judgment creditors can garnish wages. Common triggers include credit card judgments, medical debt judgments, and auto deficiency balances.

How much of my wages can be garnished?

Arizona allows creditors to garnish the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage ($7.25/hr). Arizona minimum wage is $14.70/hr (2026), so the 30x calculation uses the higher state minimum wage for some protections. Bank accounts can also be garnished, though $300 in a single account is exempt.

What about bank account garnishment?

Arizona exempts $300 in a single bank account from garnishment.

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