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Arizona Revised Statutes Title 12. Courts and Civil Proceedings § 12-1598.10. Continuing lien on earnings; order

Current as of January 01, 2025 | Updated by Findlaw Staff

<Section as amended by 2022 Proposition 209. See, also, § 12-1598.10 as amended by Laws 2021, Ch. 306, § 8.>

A. If it appears from the answer of the garnishee that the judgment debtor was an employee of the garnishee, or that the garnishee otherwise owed earnings to the judgment debtor when the writ was served, or earnings would be owed within sixty days thereafter and there is no timely written objection to the writ or the answer of the garnishee filed, on application by the judgment creditor the court shall order that the nonexempt earnings, if any, withheld by the garnishee after service of the writ be transferred to the judgment creditor who is entitled to such monies subject to the judgment debtor's right to objection and hearing pursuant to this article. The court shall further order that the garnishment is a continuing lien against the nonexempt earnings of the judgment debtor.

B. If a timely objection is filed the court shall conduct a hearing pursuant to § 12-1598.07 and shall make the following determinations:

1. Whether the writ is valid against the judgment debtor.

2. The amount outstanding on the judgment at the time the writ was served, plus accruing costs.

3. Whether the judgment debtor was employed by the garnishee at the time the writ was served.

4. Whether earnings were owed or would be owed by the garnishee to the judgment debtor within sixty days after the service of the writ.

5. Whether the debt was, at the time of service of the writ, subject to an effective agreement for debt scheduling between the judgment debtor and a qualified debt counseling organization.

C. If the court makes an affirmative determination under subsection B, paragraph 1 of this section and subsection B, paragraph 3 or 4 of this section and determines that the debt was not, at the time of service of the writ, subject to an effective agreement between the judgment debtor and a qualified debt counseling organization, the court shall order that the nonexempt earnings, if any, withheld by the garnishee after service of the writ be transferred to the judgment creditor and further order that the garnishment is a continuing lien against the nonexempt earnings of the judgment debtor. Otherwise the court shall order the garnishee discharged from the writ.

D. A continuing lien ordered pursuant to this section is invalid and of no force and effect on the occurrence of any of the following conditions:

1. The underlying judgment is satisfied in full, is vacated or expires.

2. The judgment debtor leaves the garnishee's employ for more than sixty days or, if the judgment debtor is an employee of a school district, a charter school, the Arizona state schools for the deaf and the blind or an accommodation school and the judgment debtor is subject to an employment contract that specifies that paydays are restricted to the school year, for more than ninety days.

3. The judgment creditor releases the garnishment.

4. The proceedings are stayed by a court of competent jurisdiction, including the United States bankruptcy court.

5. The judgment debtor has not earned any nonexempt earnings for at least sixty days or, if the judgment debtor is an employee of a school district, a charter school, the Arizona state schools for the deaf and the blind or an accommodation school and the judgment debtor is subject to an employment contract that specifies that paydays are restricted to the school year, for at least ninety days.

6. The court orders that the garnishment be quashed.

E. If no objections are filed to the answer of the garnishee and an order of continuing lien is not entered within forty-five days after the filing of the answer of the garnishee, any earnings held by the garnishee shall be released to the judgment debtor and the garnishee shall be discharged from any liability on the garnishment.

F. If at the hearing the court determines that the judgment debtor is subject to the ten percent maximum disposable earnings provision under § 33-1131, subsection B and based on clear and convincing evidence that the judgment debtor or the judgment debtor's family would suffer extreme economic hardship as a result of the garnishment, the court may reduce the amount of nonexempt earnings withheld under a continuing lien ordered pursuant to this section from the ten percent to not less than five percent.

G. A court order entered pursuant to this section if recorded does not constitute a lien against real property pursuant to § 33-961.

H. The court, sitting without a jury, shall decide all issues of fact and law.

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Cite this article: FindLaw.com - Arizona Revised Statutes Title 12. Courts and Civil Proceedings § 12-1598.10. Continuing lien on earnings; order - last updated January 01, 2025 | https://codes.findlaw.com/az/title-12-courts-and-civil-proceedings/az-rev-st-sect-12-1598-10/

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