Arizona Post-Judgment Payment Plans and Installment Agreements

The debtor does not have the full amount right now. Maybe they offered to pay in installments. Maybe you are considering it because garnishing their wages at 10% will take months. Either way, you need to know how post-judgment payment plans work in Arizona — and what to do when the payments stop.

Voluntary Payment Agreements

Arizona law does not require the court to approve a voluntary payment plan between you and the debtor. If the debtor contacts you and proposes installments, you can negotiate and accept an arrangement directly. No court filing is needed to start receiving payments.

But you should absolutely put the agreement in writing. A written installment agreement should include:

• The total judgment amount, including accrued post-judgment interest and court costs
• The payment amount and frequency (weekly, biweekly, monthly)
• The payment method and where payments are sent
• A clear statement that if the debtor misses a payment, you can immediately pursue enforcement without further notice
• Both parties' signatures and the date

This written agreement protects you. Without it, you have no documented terms to enforce if the debtor stops paying after the second check.

Court-Ordered Installment Plans

For a judgment covered by A.R.S. §§ 28-4071 through 28-4075, the debtor may apply to the court for an installment order after giving the creditor due notice. This is the statutory installment process for motor-vehicle judgments covered by those provisions; A.R.S. § 12-1631 authorizes a debtor examination, not a general hardship payment plan.

The court may set the amounts and times of payment without limiting the creditor's other legal remedies.

When Payments Stop

If the debtor stops paying under a voluntary agreement, you are free to pursue any statutory enforcement tool immediately — wage garnishment, bank levy, judgment lien, or a writ of execution. The voluntary agreement does not waive your enforcement rights unless you explicitly agreed to those terms (which you should not).

If the debtor defaults on a court-ordered installment plan under A.R.S. § 28-4075, the MVD must suspend the license, registration, or nonresident operating privilege after notice of the default. The creditor also retains other legal remedies under that statute.

In either case, the judgment balance at that point is the original amount plus accrued post-judgment interest under A.R.S. § 44-1201, minus whatever payments you have already received. Keep a payment log — you will need it if you file for garnishment and the court asks for the current balance.

Should You Accept a Payment Plan?

It depends on the debtor's financial situation.

Accept installments when the debtor has steady income but limited liquid assets, when the judgment amount is relatively small and garnishment costs would eat into your recovery, or when the debtor is cooperative and you want to avoid the time and fees of formal enforcement.

Pursue enforcement instead when the debtor has already ignored your demand letter, when you have reason to believe they are hiding assets, when you have identified garnishable wages or bank accounts with balances above the 2026 inflation-adjusted $5,600 Proposition 209 exemption, or when the debtor has a history of broken promises.

Post-judgment interest continues accruing under A.R.S. § 44-1201 regardless of whether a payment plan is in place, so delayed payment does increase the total amount owed. At the statutory rate (the lesser of 10% per annum or 1% above the prime rate on the date of judgment), a $3,500 judgment accrues roughly $29 per month in interest.

If you want a step-by-step approach to evaluating whether a payment plan makes sense for your situation — including how to calculate the break-even point between installments and garnishment costs — our Arizona judgment collection guide covers the full decision framework.

See more Arizona guides →