Arizona Debt Relief

Arizona Credit Card Debt law has a short statute of limitations for a creditor to file suit on unpaid open-ended accounts. The Statute of Limitations (SOL) begins to run from the due date of the last unmade payment. Unlike most states, The Arizona SOL does not start again if debtors make a subsequent partial payment. Arizona allows 20 days to respond to a summons, beginning the date after it was served. Answers should be sent via certified mail to ensure their timely arrival.

Judgment Enforcement

Judgments in Arizona can be enforced for five years, but can be renewed indefinitely. Interest accrues at a rate of ten percent yearly. The creditor has the right to seize all nonexempt property, both personal and real, from the debtor to enforce the judgment. Liens on judgments under $100,000 may not be placed on homesteaded properties. The state also allows some exemptions on personal property.

Property seizures are uncommon because of the bad publicity and cost involved, so most creditors will instead enforce judgment by garnishing accounts and wages. Arizona law exempts 25% of an individual’s earnings, which is broadly defined to include many types of compensation. The court may reduce this as low as 15%. The state uses a formula to calculate exactly how much of earnings are “disposable.”

Debt Settlement

Debt Settlement may help debtors sidestep lawsuits and bankruptcy filings. The process allows for repayment of debt quickly, without paying interest. Consumers may wish to investigate this option in lieu of lengthy court battles.