If you file for Chapter 7 bankruptcy in Arkansas, you can protect some or all of your property with Arkansas’ bankruptcy exemptions. The bankruptcy exemptions in Arkansas also play a role in Chapter 13 bankruptcy. Read on to learn about the property you can protect with Arkansas’ bankruptcy exemptions.
For a general overview of bankruptcy exemptions, visit the Bankruptcy Exemption topic page.
Arkansas is one of the states that allow debtors to choose between the Arkansas exemptions and the federal bankruptcy exemptions. This means that you may review both sets of exemptions and pick the exemptions that better protect your assets.
Married couples filing a joint bankruptcy in Arkansas may double the exemption amounts (except for the homestead exemption). This means that each spouse may claim the full exemption amount for any property in which the spouse has ownership interest. For example, if both spouses own an item and they file jointly, they can double the amount of the applicable exemption to protect that item’s value.
Here are some of the more common exemptions available under Arkansas law. Unless otherwise indicated, all references are to the Arkansas Code Annotated or the Arkansas Constitution.
The homestead exemption protects equity in real property that you use as your residence. In Arkansas, you can choose between two state homestead exemption options.
Option A: If you are a married person or head of family, you can protect unlimited equity in up to