Debt relief in Arizona: collection rules, time limits and your options
Updated November 9, 2026
Arizona at a glance (checked November 2026)
| Arizona | |
|---|---|
| Time limit to sue on credit cards | 6 years |
| Wage garnishment for consumer debt | Up to 10% of disposable pay, less for low earners |
| Protected in a bank account | $5,000 |
| State debt collection law | Predatory Debt Collection Protection Act (Proposition 209, 2022); collection agency law (A.R.S. Title 32, ch. 9) |
| Who licenses debt collectors | Department of Insurance and Financial Institutions (DIFI) |
| Where to complain | Arizona Attorney General, DIFI, and the CFPB |
Debt collection rules in Arizona
Collection agencies working in Arizona must hold a license from the Department of Insurance and Financial Institutions (DIFI), which also takes complaints about them. A collector that isn't licensed is a red flag, so check before you pay.
In November 2022, about 72% of Arizona voters approved Proposition 209, the Predatory Debt Collection Protection Act. It took effect in December 2022 and does more than its medical debt headlines suggest: it cut how much of your pay can be garnished, raised the amount you can keep in the bank and in your home and car, and capped interest on medical debt at 3%.
The federal Fair Debt Collection Practices Act applies as well: no calls before 8 a.m. or after 9 p.m., no threats or lies about what you owe, and a written validation notice you can dispute within 30 days.
How long creditors have to sue
Arizona gives creditors 6 years to sue on credit card debt and other written contracts (A.R.S. § 12-548). Arizona courts have rejected attempts to treat credit cards as open accounts, which have a shorter 3-year limit (§ 12-543) that still applies to oral debts.
The clock starts when the creditor can first sue for the debt, which is not always the date of your first missed payment, so an old account may still be within the limit. Once the limit passes, a collector can't sue you or threaten to under federal rules. If you're sued, answer by the deadline on the summons and raise the time limit if it applies.
What can be garnished in Arizona
Since Proposition 209, a creditor with a judgment can take the lesser of:
- 10% of your disposable earnings (pay after required deductions), or
- the amount by which your weekly disposable earnings exceed 60 times the highest minimum wage that applies to you.
That's well below the 25% federal limit most states use. Child support, taxes and bankruptcy orders follow different rules.
Arizona also protects:
- $5,000 in a bank account,
- your home equity up to the homestead amount, which Proposition 209 raised to $400,000 and which now rises with inflation each year,
- a vehicle worth up to $15,000, or $25,000 if you or a dependent has a disability.
Ways out of debt in Arizona
- Nonprofit credit counseling can put your cards on a debt management plan with lower rates. Look for an NFCC or FCAA member.
- A balance transfer card can stop interest for a while if your credit is good. See if the fee pays off with our balance transfer calculator.
- Debt settlement companies can't charge until they settle a debt, under federal rules, and forgiven debt can be taxed as income.
- Bankruptcy: Arizona requires you to use its own exemption list, and that list became much more generous in 2022, so more Arizonans can keep their home and car in a Chapter 7 case.
Where to get help or complain
- Arizona Attorney General takes consumer complaints online or at (602) 542-5763.
- Arizona DIFI licenses collection agencies and takes complaints about them.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- AZLawHelp.org has free legal information and lists legal aid offices.
General information about Arizona law, not legal advice. Checked November 2026.