Arkansas Bankruptcy Laws & Exemptions
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Arkansas Bankruptcy Laws

Considering Filing Bankruptcy in Arkansas?

After reviewing the bankruptcy information at Total Bankruptcy, you can learn more about filing Chapter 7 and Chapter 13 bankruptcy in Arkansas by talking to an Arkansas bankruptcy lawyer. A bankruptcy lawyer can give you specific details about the state’s bankruptcy laws.

After you get more information the bankruptcy process, you may be able to decide which debt-relief option best suits your financial circumstances.

You can schedule a consultation with a local Arkansas bankruptcy lawyer by filling out the short form below or calling, toll-free, 877-349-1309.

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Arkansas Bankruptcy Law

Your Arkansas bankruptcy lawyer will likely begin your consultation by explaining the differences in filing Chapter 7 and filing Chapter 13 bankruptcy.

Your lawyer may also ask you some personal questions, or have you fill out an intake sheet to provide specific information about your finances during this meeting. Your answers about your debts, assets and financial goals will help you and your bankruptcy lawyer determine if filing Chapter 7 or Chapter 13 bankruptcy is best for you.

Chapter 7 bankruptcy is often called "liquidation" because in Chapter 7 bankruptcy cases, the bankruptcy trustee has the option to liquidate (sell) any non-exempt property owned by the debtor. In many Chapter 7 bankruptcy cases, there is no liquidation because the person filing bankruptcy does not own any non-exempt property.

For people who do not own many assets, Chapter 7 bankruptcy may be an attractive option because many unsecured debts - including mortgage, credit card and medical bills - could be eliminated.

Debtors who choose to file Chapter 7 bankruptcy should meet with their attorney to discuss which and how much of their assets may be exempt from liquidation.


  • Unlimited exemption on rural homesteads up to 80 acres. If homestead is between 81-160 acres the exemption is limited to $2,500.
  • Unlimited exemption on urban homesteads up to .25 acre. If the homestead is between .25-1 acre the exemption is limited to $2,500.

Note: A person may have either an exempt rural homestead or an exempt urban homestead, but not both.


  • Earned but unpaid wages due for 60 days.


  • The interest in one vehicle, not to exceed $1,200.

Personal Property

  • Up to $500 of any personal property of a married person or head of household; otherwise only $200 of personal property.
  • Clothing and wedding rings, regardless of value, are fully exempt.

Chapter 13 bankruptcy is called “reorganization.” By filing Chapter 13 bankruptcy, debtors who own a lot of property could be able to keep most of their assets.

After filing Chapter 13 bankruptcy, the debtor creates and proposes a repayment plan to be approved by the bankruptcy court. This three-five year plan gives the debtor time to catch up on past due bills.

Talk to an Arkansas Bankruptcy Lawyer Today

If you are considering filing bankruptcy in Arkansas, you may feel confused or overwhelmed by the complexity of the state’s bankruptcy laws.

Your attorney may be able to explain the bankruptcy process to you in layman’s terms in order to clear up any confusion. Your bankruptcy lawyer can answer any other questions that you may have about your bankruptcy case.

At Total Bankruptcy, we make it easy to find a local bankruptcy attorney. Simply fill out the free bankruptcy case evaluation form on this page or give us a call at 877-349-1309, and we’ll connect you with an Arkansas bankruptcy lawyer near you.

Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.

Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.

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