Arizona Medical Debt Laws: Statute of Limitations, Garnishment & Your Rights

Medical debt in Arizona is governed by a 6-year statute of limitations (A.R.S. § 12-548). After this period, creditors cannot sue to collect the debt in court. Arizona also has specific rules on wage garnishment, charity care, and credit reporting that affect how you should handle medical debt.

Statute of limitations on medical debt in Arizona

Under A.R.S. § 12-548, the statute of limitations on written contracts (which includes most medical bills) is 6 years in Arizona. The clock starts from the date of last payment or last activity on the account.

Once this period expires, the debt is "time-barred" — the creditor cannot file a lawsuit to force payment. However:

• The debt still legally exists and collectors can still request payment
• Making a payment or acknowledging the debt in writing can RESTART the clock
• The debt may still appear on your credit report for up to 7 years from first delinquency

Wage garnishment rules in Arizona

25% of disposable earnings (federal cap)

Wage garnishment can only occur after a creditor:

1. Files a civil lawsuit against you
2. Serves you with a summons and complaint
3. Wins a judgment (often by default if you don't respond)
4. Obtains a separate garnishment order

If you receive a lawsuit notice, ALWAYS respond — even just to request more time. Default judgments are the most common path to wage garnishment.

Credit reporting rules for medical debt in Arizona

Standard federal rules apply.

Under federal rules that apply nationwide:

• Medical debt under $500 is not reported on credit files (as of 2023)
• Paid medical collections are removed from credit reports
• Unpaid medical debt has a 12-month grace period before appearing on credit reports
• Negative medical debt entries are removed after 7 years under FCRA

Notable Arizona medical debt protections

Arizona has a 6-year statute of limitations for written contracts including medical bills. Standard consumer protections.

What to do if you have medical debt in Arizona

1. Request an itemized bill. You have a legal right to one. Audit each line against Medicare rates before paying anything.
2. Apply for financial assistance. All nonprofit hospitals are required by IRS rules to offer charity care programs. Most cover patients up to 300–400% FPL.
3. Verify the statute of limitations. If the debt is older than 6 years with no payment activity, it may be time-barred and unenforceable in court.
4. Negotiate before paying. Medical debt collectors typically buy debt for 5–10 cents on the dollar — they will often settle for 20–40% of face value.
5. Never ignore a lawsuit. Default judgments are the most common path to wage garnishment. Always respond to court notices even if only to request more time.
6. If you cannot pay, consider bankruptcy. Medical debt is fully dischargeable in Chapter 7 bankruptcy. Medical bills are the leading cause of personal bankruptcy in the US.