Arizona Credit Card Debt: Statute of Limitations (2026)

How Arizona’s 6-year statute of limitations works

Arizona applies a 6-year statute of limitations to actions on written contracts under A.R.S. § 12-548. Credit card debt is treated as a written contract because the cardholder agreement signed at account opening satisfies the writing requirement. The Arizona Supreme Court in Mertola, LLC v. Santos, 244 Ariz. 488 (2018) clarified the accrual date: the SOL clock starts on the date of the first missed payment that ultimately led to charge-off, not on the date of charge-off itself.

Charge-off typically happens 6 months after the first missed payment. If you stopped paying a Discover card in January 2026, the issuer charges off in July 2026 but the SOL clock started in January 2026. Any lawsuit filed after January 2032 is time-barred and dismissable on motion.

If you are sued in Arizona Justice Court, Superior Court, or municipal court on a credit card debt, the answer deadline is 20 days from service. Failure to file an answer results in a default judgment for the full balance plus court costs, attorney’s fees if provided in the cardholder agreement, and post-judgment interest at the lesser of 10% per year or the contract rate under A.R.S. § 44-1201.

Real example timeline

Maria stopped paying an $8,400 Bank of America card in March 2020 after a job loss. The account charged off in September 2020 and was sold to LVNV Funding. LVNV sued in Maricopa County Superior Court in April 2026, 6 years and 1 month after the date of default. Maria filed an answer asserting the SOL defense and pointed to Mertola v. Santos as controlling authority. The court granted summary judgment for Maria because the 6-year window under § 12-548 had run before the complaint was filed.

Why community property matters for credit card debt

Arizona is one of nine community property states. Under A.R.S. § 25-214, both spouses share equal management and control over community property. Under A.R.S. § 25-215, community property is liable for community debts and for the separate debts of either spouse incurred during the marriage. The Arizona Supreme Court has interpreted § 25-215 to mean that even a credit card in only one spouse’s name, opened during marriage, creates a community obligation absent specific evidence of separate-property treatment.

A judgment creditor can reach community wages, community bank accounts, and community real estate. Separately-titled assets owned by the non-debtor spouse before marriage, or acquired by gift or inheritance during marriage, remain separate property and are protected.

Settlement math for a typical Arizona credit card balance

The pillar payoff calculator models the same balance across three paths: continue minimums, settle for a lump sum, or aggressive payoff. Arizona’s 10% post-judgment interest rate and 6-year SOL window mean that letting a debt go to judgment is expensive: a $10,000 judgment unpaid for 5 years accrues to $16,105.

Typical scenario: $9,800 balance, 24.99% APR, minimum payment of 2% of balance.

• Path 1, minimums only: 30 years to payoff, $17,200 in interest paid.
• Path 2, settle pre-judgment at 40%: $3,920 lump sum, account closed, charge-off remains on credit report 7 years from first delinquency under the Fair Credit Reporting Act § 605.
• Path 3, settle pre-judgment at 50% over 12 months: $4,900 paid in installments, similar credit impact.

Comparison with neighboring states

When you are functionally judgment-proof in Arizona

If your only income is Social Security, SSI, Veterans Affairs, public assistance, or unemployment, those funds are exempt under 42 U.S.C. § 407 and Arizona-specific exemptions in A.R.S. § 33-1126. Arizona also protects $300 in a bank account from levy and the federal 2-month rule under 31 CFR Part 212 protects 2 months of federal benefit deposits automatically.

Wage garnishment math under A.R.S. § 33-1131

Arizona’s wage garnishment statute caps a writ of garnishment at the lesser of:

• 25% of disposable earnings for the workweek, OR
• The amount by which weekly disposable earnings exceed 30 times the federal minimum wage ($217.50/week).

For a worker earning $1,000/week gross in Phoenix with $200 in mandatory deductions ($800 disposable), the analysis runs:

• 25% disposable = $200/week cap
• Disposable minus (30 × $7.25 federal min wage) = $800 - $217.50 = $582.50/week

The lesser figure controls: $200/week, or 25% of disposable. Arizona uses the federal minimum wage threshold rather than the state minimum wage, so the protection is not as strong as California’s 40-multiplier against state minimum wage.

Proposition 209’s medical debt exception. Effective January 1, 2022, Proposition 209 reduced the cap to 10% of disposable earnings for judgments arising from medical debt. Credit card debt is not medical debt and remains at the 25% federal cap, but if your debt is partially medical (a credit card used to pay hospital bills), it may qualify for the lower cap with proper documentation.

Homestead exemption raised by Proposition 209

Under A.R.S. § 33-1101, the Arizona homestead exemption is $400,000 of equity in a primary residence, effective December 2022 after Proposition 209 passed in the November 2022 general election. The prior amount was $250,000. The exemption applies automatically; no declaration is required as long as the property is actually used as a primary residence.

An Arizona homeowner with equity below $400,000 above any senior liens (mortgage, HELOC) is fully protected from a forced sale by a credit card judgment creditor. The creditor can record a judgment lien against the home, but the lien cannot ripen into a forced sale if the equity is within the exemption.

Vehicle exemption raised to $15,000

Proposition 209 also raised the motor vehicle exemption under A.R.S. § 33-1125(8) from $6,000 to $15,000 per vehicle (or $25,000 for a debtor with a physical disability). A typical commuter vehicle is fully protected.

Arizona regulates collection agencies, not debt settlement firms

Collection agencies operating in Arizona must be licensed by the Arizona Department of Insurance and Financial Institutions under A.R.S. Title 32 Chapter 9. The license requires a $10,000 surety bond, financial responsibility evidence, and ongoing compliance with the federal FDCPA. Verify any collection agency contacting you at the DIFI license search before paying.

Arizona does not have a state debt settlement licensing scheme. Out-of-state debt-relief firms operating in Arizona must comply with the federal Telemarketing Sales Rule (16 CFR § 310.4(a)(5)), which bars advance fees before settlements are reached. The Arizona Attorney General’s consumer complaint portal accepts complaints under the Arizona Consumer Fraud Act.

Authoritative sources

• Arizona Revised Statutes § 12-548 (6-year SOL)
• Arizona Revised Statutes § 33-1101 (homestead exemption)
• Arizona Revised Statutes § 33-1131 (wage garnishment cap)
• Arizona Revised Statutes § 25-214 and § 25-215 (community property)
• Arizona Revised Statutes § 44-1521 (Consumer Fraud Act)
• Arizona Attorney General consumer protection
• Arizona Department of Insurance and Financial Institutions
• CFPB time-barred debt guidance

Neighboring states with different rules

• California credit card debt laws (4-year SOL, community property)
• Nevada credit card debt laws (4-year SOL, $605,000 homestead)
• New Mexico credit card debt laws (community property)
• Utah credit card debt laws (6-year SOL)
• Colorado credit card debt laws (6-year SOL)

Related tools

• Credit card payoff calculator to compare settlement vs minimums vs aggressive payoff
• Debt management plan calculator
• Can credit card debt garnish your wages?
• Can credit card debt be garnished from Social Security?

Frequently asked questions

What is the statute of limitations on credit card debt in Arizona?

Arizona has a 6-year statute of limitations for written contracts including credit card debt under A.R.S. § 12-548. The clock starts on the date of last payment or written acknowledgment, whichever is later. The Arizona Supreme Court in Mertola, LLC v. Santos (2018) clarified that the date of default for credit card SOL purposes is the date the first missed payment was due that ultimately led to charge-off, fixing the start of the 6-year period.

Can Arizona creditors garnish my wages for credit card debt?

Yes, after a judgment. Under A.R.S. § 33-1131, wage garnishment is capped at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Effective January 1, 2022, Arizona enacted Proposition 209 (now in A.R.S. § 33-1131) reducing the cap to 10% of disposable earnings for medical debt judgments only. Credit card debt remains at the 25% federal cap.

What is Arizona’s homestead exemption for credit card debt?

Under A.R.S. § 33-1101, the Arizona homestead exemption is $400,000 of equity in a primary residence, increased from $250,000 by Proposition 209 effective December 2022. The exemption applies automatically to the primary residence; no declaration is required. A credit card creditor cannot force the sale of an Arizona homestead unless equity exceeds $400,000 above the senior liens.

Is my spouse liable for my credit card debt in Arizona?

Arizona is a community property state. Under A.R.S. § 25-214 and § 25-215, debts incurred during marriage by either spouse are generally community debts collectible against community property. Separate property of the non-debtor spouse is shielded. If a credit card was opened solely in one spouse’s name and used solely for that spouse’s benefit, a creditor may struggle to prove community benefit, but the default is community liability.

Does Arizona license debt relief companies?

Arizona does not have a state-specific debt settlement licensing scheme; federal Telemarketing Sales Rule and FTC rules apply to interstate debt-relief companies. Arizona does regulate collection agencies under A.R.S. Title 32 Chapter 9, requiring licensure by the Arizona Department of Insurance and Financial Institutions. The Arizona Consumer Fraud Act (A.R.S. § 44-1521 et seq.) gives consumers private rights of action and the Arizona Attorney General enforcement authority.