No. 1 CA-CV 93-0225.

184 Ariz. 181 (1995)

907 P.2d 1384

FRAZER, RYAN, GOLDBERG, KEYT & LAWLESS, a partnership, Plaintiff/Judgment Creditor, Appellee, Valley National Bank of Arizona, Garnishee, Appellee, v. Michael A. SMITH, a single man, Defendant/Judgment Debtor, Appellant.

Court of Appeals of Arizona, Division 1, Department A.

Review Denied December 19, 1995.

Attorney(s) appearing for the Case

Paul Crane, Phoenix, for appellant.

Frazer, Ryan & Goldberg by John R. Fitzpatrick, Phoenix, for appellees.


FIDEL, Presiding Judge.

Only 25% of a judgment debtor's disposable earnings is subject to garnishment in Arizona. See Ariz. Rev. Stat. Ann. ("A.R.S.") § 33-1131(B). In cases of extreme economic hardship, the court may reduce this nonexempt amount to 15%. See A.R.S. § 12-1598.10(F). Do funds retain their partially exempt status as earnings, however, once disbursed to the judgment debtor's bank account? That question...

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