In Arizona, creditors can record a judgment lien against a debtor’s property to secure repayment.
However, not all property can be seized or encumbered by a lien.
Arizona law protects certain assets to ensure individuals maintain basic necessities and a place to live.
So, what property is exempt from a judgment lien?
Let’s break it down.
1. Homestead Exemption – Primary Residence (Up to $400,000 in Equity)
Arizona law protects your home from judgment liens—up to a certain value.
Legal Protection:
- Under A.R.S. § 33-1101, a debtor’s primary residence is exempt from liens up to $400,000 in equity.
- Covers houses, condos, and mobile homes used as a primary residence.
- Creditors cannot force a sale unless the equity exceeds $400,000.
Example:
A homeowner has $350,000 in equity in their Phoenix home.
A creditor files a $50,000 judgment lien.
The lien cannot be enforced because the equity is within the exemption limit.
Arizona law ensures your home remains protected.
2. Motor Vehicle Exemption – Up to $15,000 ($25,000 for Disabled Individuals)
Your vehicle is partially exempt from seizure.
Legal Protection:
- Under A.R.S. § 33-1125(8), a debtor can exempt:
- Up to $15,000 in vehicle equity.
- Up to $25,000 in equity if the debtor is disabled.
- If the vehicle’s equity exceeds the exemption, a creditor may place a lien but must leave the exempt portion untouched.
Example:
A debtor owns a car worth $20,000 with a $10,000 loan balance.
Their equity is $10,000, which falls under the exemption—so no lien can be placed.
Arizona law ensures you keep your transportation.
3. Wages & Bank Accounts – Partial Exemptions
Your wages and bank funds receive some protection from garnishment.
Legal Protection:
- Wage Garnishment Limits (A.R.S. § 12-1598.10)
- Creditors can only garnish up to 25% of disposable income.
- More protection applies if earnings are below federal poverty guidelines.
- Bank Account Exemption
- Up to $300 in a single bank account is protected from seizure.
Example:
A worker earns $2,000 per month after taxes.
Only $500 (25%) can be garnished—leaving at least $1,500.
Arizona law ensures you still have money to live on.
4. Household Goods & Personal Property – Up to $15,000 in Value
Basic household necessities are protected from judgment liens.
Legal Protection:
Under A.R.S. § 33-1123, the following are exempt:
- Furniture & appliances (up to $6,000 total value).
- Clothing, books, and musical instruments (up to $1,000 total value).
- Engagement & wedding rings (up to $2,000 total value).
- Computers, electronics, and tools of the trade (up to $5,000 total value).
Example:
A debtor owns $3,000 worth of furniture, a $500 TV, and a $1,000 computer.
These items are exempt from seizure.
You won’t lose your essentials.
5. Business & Work-Related Tools – Up to $5,000 in Value
If you need tools to earn a living, Arizona law protects them.
Legal Protection:
- Under A.R.S. § 33-1125(5), professional tools and equipment up to $5,000 are exempt.
- Applies to tradespeople, mechanics, construction workers, artists, and more.
Example:
A self-employed carpenter owns $4,500 worth of tools.
These tools cannot be seized because they are within the exemption limit.
Arizona law ensures you can still make a living.
6. Retirement Accounts & Pensions – Fully Exempt
Your retirement savings are fully protected from judgment liens.
Legal Protection:
Under A.R.S. § 33-1126, the following are exempt from liens and garnishment:
- 401(k) & IRA accounts
- Pensions & retirement funds
- Social Security benefits
Example:
A debtor has $200,000 in a 401(k).
A creditor cannot place a lien on these funds.
Your retirement savings stay yours.
7. Life Insurance & Disability Benefits – Fully Exempt
Insurance money and disability benefits cannot be seized.
Legal Protection:
- Life insurance proceeds are exempt from liens.
- Disability benefits cannot be seized by creditors.
Example:
A disabled debtor receives $1,500 per month in disability payments.
A judgment creditor cannot garnish these funds.
Arizona law protects the most vulnerable.
What Can’t Be Taken by Judgment Liens in Arizona?
Fully Exempt Property:
- Primary residence (up to $400,000 equity).
- Retirement accounts & pensions.
- Life insurance & disability benefits.
Partially Exempt Property:
- Vehicles (up to $15,000 equity).
- Wages (up to 75% protected).
- Household goods & personal property (up to $15,000).
- Work-related tools (up to $5,000).
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