PHOENIX — This year, voters had 10 propositions on the ballots that they could vote into law. Proposition 209, which limited predatory debt practices, passed with overwhelming support.
Under the new law, medical debt interest rates are reduced from 10% to 3% annually, and exemptions will be adjusted for inflation starting in 2024.
Additionally, the law will increase the number of certain assets exempt from debt collection. Now, a debtor's home, household items, motor vehicle, and bank account may be protected from debt collection.
Finally, the amount of wages that can be garnished has been limited to 10% of disposable earnings. Courts can also choose to lower the amount to 5% of disposable earnings if the debtor is facing economic hardship.
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The new law helps to take some pressure off of those dealing with the present day's economic uncertainty.
The Associated Press called the vote in 209's favor just before midnight. As of this morning, the secretary of state's website shows that approval leads 71% to 29%.
RELATED: Arizona election results: Ballot propositions 209, 211 pass; 128 Legislature initiative rejected
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Decision 2022
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