Arizona Demand Letter After Judgment

Why the Demand Letter Comes First

You've won your small claims case in Arizona, and the debtor owes you money. Before you file for wage garnishment, make a demand for payment. Under A.R.S. § 12-1598.03, your application must state that you demanded payment, the debtor has not paid the amount due, and the debtor is not already making agreed payments of the nonexempt portion of wages until the judgment is satisfied. A written letter is a practical way to document the demand. A letter is also a useful first step before other enforcement tools, but it is not a statutory prerequisite to them.

Beyond the legal requirement, a demand letter is cheap and sometimes effective on its own. Some debtors don't pay simply because they're disorganized, not because they're hiding assets. A clear, factual letter with a deadline can resolve the matter without spending money on constable fees and court filings.

What the Letter Must Include

Keep it factual and concise:

1. Case caption and number — the court, case number, and parties
2. Total amount owed — the original judgment amount plus accrued post-judgment interest (under A.R.S. § 44-1201) and any recoverable court costs
3. Payment instructions — exactly where to send payment (address or electronic method) and acceptable forms (cashier's check, money order, etc.)
4. Deadline — 10 to 14 calendar days from the date of the letter
5. Consequence of non-payment — state that you will pursue formal court enforcement tools (garnishment, debtor examination, liens) if payment isn't received by the deadline

That last point has to be truthful. If you say you'll garnish wages, you need to be prepared to actually do it. Keep communications accurate and non-harassing. Don't threaten criminal prosecution, arrest, or anything you can't legally deliver.

Send It Properly

Send the demand letter by certified mail with return receipt requested. This creates a paper trail showing the debtor received it — useful if you need to prove the demand was made before filing garnishment papers.

Keep a copy of the letter and the certified mail receipt. If the debtor later claims they were never asked to pay, you have documentation.

When the Debtor Wants a Payment Plan

Some debtors will respond to the demand letter by offering to pay in installments. This is worth considering if the alternative is spending months on garnishment proceedings to collect the same amount.

If you agree to a payment plan, put it in writing. The agreement should specify:

• Total amount owed (including interest and costs)
• Amount and frequency of each payment
• Due dates
• Where payments are sent
• What happens if a payment is missed (you resume formal enforcement)

An installment agreement doesn't waive your right to enforce the judgment if the debtor defaults. You can accept three months of payments and still file for garnishment if they stop.

When the Letter Is Ignored

If the deadline passes with no payment and no response, you move to enforcement. The sequence typically goes:

1. Debtor examination — if you don't know the debtor's employer, bank, or assets
2. Wage garnishment — if you know where they work and their disposable earnings exceed the Proposition 209 floor
3. Bank garnishment — if they have more than $5,000 in a bank account
4. Judgment lien — if they own real property

The demand letter was step one. Its failure simply confirms that voluntary compliance isn't happening and formal enforcement is necessary.

Get the complete Arizona judgment collection guide with a demand letter template, payment plan agreement, and decision framework for choosing your next enforcement step.

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