Unless specifically exempted from the garnishment process by state law, almost any source of income can be claimed to pay back legal debts. The controlling authority for determining exemption status is federal law, and then state law in the Arizona Revised Statutes. Federal law says Social Security disability cannot be garnished except in a few instances. Whether the same holds true for your state-level retirement disability pension depends upon the specific source of the check.
Garnishment
Wage garnishment is legal in Arizona. To collect, a creditor must go to court and receive a legal judgment in his favor and then apply for a Writ of Garnishment. Though federal law decrees that no one shall have more than 25 percent of his income garnished, some judges in Arizona lower that to 15 percent. Social Security retirement can only be garnished for certain types of debt like alimony, child support and federal taxes. This is law enacted at the federal level. Arizona has seen to apply the same kind of thinking to certain state retirement disability pensions.
Pensions
The Arizona Revised Statutes protect some state and local pensions from garnishment, such as police officers, firefighters and other public safety personnel. State employees and Board of Regents members enjoy the same protection for their retirement benefits. In the U.S., public servants have always enjoyed a respected position, and guarding their retirement money is seen as a "thank you" for doing a tough job. Private pensions and others not specifically protected by state law can expect to be attached for garnishment if approved by the court system.
Defense
No Writ of Garnishment will be issued by an Arizona court without the defendant having opportunity to present his side of the argument in court. If you feel your retirement is on the verge of being wrongfully attached for debt, it is well within your rights to hire an attorney or even make the case to the judge yourself. Keep in mind that it is legal in Arizona to garnish most private retirement pensions, though there is a formula that should be used to ensure the debtor has enough income to live on.
Considerations
Creditors and debtors alike should keep in mind that there is a statute of limitations for garnishment in Arizona after a favorable decision has been rendered by the court. The creditor has five years after a decision has been rendered in Arizona, and four years on a decision rendered outside the state, to complete the garnishing process. If he waits too long, he must start the whole thing over.
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