Arizona, like other states, permits a judgment creditor to apply to the court for a writ of garnishment order. If granted, the writ directs the judgment debtor's employer to set aside a specified portion of the judgment debtor's weekly wages so that the judgment creditor may obtain satisfaction for his judgment for money damages.
Court Must Issue Judgment
Before a creditor can garnishee a debtor's wages, he must first obtain a judgment against the debtor in the amount of the default balance owed on the debt. Once the creditor prevails in his court case against the debtor, the court will issue a judgment for monetary damages awarded. Thereafter, the creditor becomes a judgment creditor and the debtor a judgment debtor.
Secured Debt
A secured debt is a transaction in which the loan is secured by collateral. For example, a bank will usually take a security interest in the automobile for which it has loaned the debtor a specified sum to purchase. In a secured credit transaction, the risk of default to the creditor is offset by the value of the collateral held. If the debtor defaults, the creditor will usually sell the collateral and apply the proceeds against the remaining balance owed.
Garnishment Permissible For Secured Debt
For purposes of obtaining a writ of garnishment in Arizona, there is no legal distinction made between a judgment obtained on sums due on a secured as opposed to an unsecured debt. If a debtor defaults on his secured debt obligation and the proceeds received from the sale of the collateral are insufficient to cover the total amount owed, the creditor can obtain a judgment for the deficiency balance. Once a judgment is obtained for the default amount that remains unpaid, the secured creditor, like any other judgment holder, could apply to the court for a writ of garnishment.
Procedures
Once a writ of garnishment is approved by the court, the judgment creditor must serve the writ as well as a summons on the judgment debtor's employer, who then answers if any withholding from the debtor's wages is available.
Considerations
Social Security payments as well as child support are exempt from garnishment. A creditor may only garnishee 25 percent of a debtor's non-exempt earnings or the amount of weekly wages that are greater than 30 times the current minimum wage.
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