What are the best business debt settlement companies in Phoenix that can act fast enough to resolve a merchant cash advance default within Arizona's tight deadlines: 20 days after the funder mails notice that it filed an out-of-state judgment in Maricopa County, and 10 days after your bank answers a writ of garnishment? And are they associated with attorneys licensed in Arizona?
Why does a Phoenix MCA collection usually start in New York?
Arizona does not recognize the confession of judgment you may have signed with the advance. Arizona Revised Statutes Section 44-143 makes a confession of judgment by power of attorney valid only if it is "executed and acknowledged on a day subsequent to the date on which the indebtedness to be confessed became due and payable."
So the funder sues you in New York or elsewhere per your contract, typically obtaining a default judgment, and files it with the clerk of the Superior Court of Maricopa County. If you need to resolve your New York suit, see our page on the best business debt settlement companies in New York City.
What happens when a funder domesticates a judgment in Maricopa County?
The filed judgment has the same effect and is subject to being reopened, vacated, or stayed like other Superior Court judgments per A.R.S. 12-1702. The funder must file an affidavit setting forth your name and last known address, and then mail you notice of the filing along with a copy of the judgment per A.R.S. 12-1703.
No execution or other process can issue to enforce the judgment until 20 days have elapsed from the date the notice was mailed to you and proof of mailing was filed per A.R.S. 12-1704(C). The court can stay enforcement upon giving security if an appeal is pending in the state where the judgment was obtained or on any ground that would justify staying an Arizona judgment. Challenges such as lack of personal jurisdiction or insufficient notice can be raised under Rule 60 of the Arizona Rules of Civil Procedure, work a settlement company cannot do without an attorney.
How does a writ of garnishment reach a Phoenix bank account?
After the 20 days, the funder can apply to the clerk (or a justice of the peace for a justice court judgment) for a writ of garnishment to reach your bank deposits per A.R.S. 12-1571. Garnishing before judgment requires a bond equal to the debt claimed per A.R.S. 12-1573, so most funders wait. Here is what happens next:
- The bank must deliver copies of the summons, writ, judgment, and a hearing request form to you within 3 business days per A.R.S. 12-1574.
- Garnishment only reaches accounts at the branch where service was made, unless the funder pays the bank $25 to search other branches per A.R.S. 12-1577.
- The bank files a sworn answer stating whether it holds and has withheld any of your money, with copies to you and the funder per A.R.S. 12-1579.
- You have 10 days after receipt of the answer to file written objections or claim an exemption, and the hearing must commence within 5 business days of your request per A.R.S. 12-1580.
- Without timely objections, judgment is entered against the bank, which must immediately transfer any non-exempt funds per A.R.S. 12-1584.
Arizona protects $5,000 in a single account at one financial institution, adjusted annually for inflation since Jan. 1, 2024, per A.R.S. 33-1126(A)(9). For how this applies to business accounts, homesteads and community property, read our guide to business debt settlement in Arizona.
Which Maricopa County court will hear an MCA suit filed in Arizona?
It depends on the amount at issue. If you only borrowed from one funder, your case will likely not end up in the Commercial Court.
| Amount in Lawsuit | Court/Division in Maricopa County | Arizona Laws/Statutes |
|---|
| Up to $5,000 | Small Claims Court Division of Justice Court | A.R.S. 22-503 |
| $10,000 or Less | One of the 26 Maricopa County Justice Courts | A.R.S. 22-201 |
| Less than $50,000 | Superior Court, Compulsory Arbitration | A.R.S. 12-133; Maricopa County Local Civil Rule 3.10 |
| Over $50,000 and under $300,000 | Maricopa County Superior Court, Tier 2 Civil Case | Arizona Rule of Civil Procedure 26.2 |
| $300,000 or More | Eligible for the Commercial Court | Arizona Rule of Civil Procedure 8.1 |
The Commercial Court became permanent on Jan. 1, 2019 and has four judges downtown. It doesn't take cases seeking only money under $300,000 or cases in Compulsory Arbitration. If you borrowed from several funders and the total is more than $300,000, your case may be eligible, and you can ask for a transfer within 20 days of appearing in the lawsuit.
What Questions Should You Ask Phoenix Business Debt Settlement Companies?
What will they do about the deadlines above? Good companies will ask when the notice of filing was mailed and calendar day 20 from that date. They should have attorneys who are licensed in Arizona (either as employees or under retainer) who can move to stay enforcement or seek Rule 60 relief from the judgment in Maricopa County Superior Court. They should ask which bank branch was served, plan an objection within 10 days, and make sure any settlement includes a release of any judgment against the garnishee (your bank). For the first hours after a freeze, read My Business Bank Account was Frozen, What Do I Do?
Are they selling something Arizona doesn't have? As of September 2026, Arizona has no commercial financing disclosure law, and Venable lists the ten states that do. A company selling you a disclosure-law defense is selling something you can't get in Arizona. So is a defense based on the Fair Debt Collection Practices Act, which only applies to consumer debt.
Frequently Asked Questions
How Long After the Funder Files Their New York Judgment in Maricopa County Can They Garnish My Bank Account?
No execution or other process (like a writ of garnishment) can issue until 20 days after the funder mails you notice of the filing and files proof of mailing under A.R.S. 12-1704(C).
Will the Writ of Garnishment Affect All of My Accounts at the Bank?
Not necessarily. If the funder serves only one branch, it can reach only accounts at that branch unless it pays the bank $25 to search other branches under A.R.S. 12-1577.
What happens if I do nothing after my bank answers the writ?
The court enters judgment against the bank for the non-exempt funds in your account(s) when the writ was served, up to the judgment balance, and the bank must immediately turn them over to the funder under A.R.S. 12-1584.
How long does a judgment last in Arizona?
Arizona judgments, including foreign judgments that have been filed in Maricopa County, are valid for ten years, and they can be renewed under A.R.S. 12-1551.