Arkansas bankruptcy exemptions allow you to keep essential property like your home and car under Chapter 7 or Chapter 13, subject to federal and state-specific exemption limits.
Updated 10/28/2025
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Arkansas bankruptcy exemptions let you keep essential property when you file Chapter 7 or Chapter 13, including homestead, vehicle, and a wildcard, subject to Arkansas's rules. This guide explains Arkansas bankruptcy exemptions, filing for bankruptcy in Arkansas, and when Chapter 7 vs. Chapter 13 makes sense.
You'll learn what property is protected, how the means test affects eligibility, and what paperwork and deadlines to expect in Arkansas courts. If you're weighing debt relief options, use this overview to decide whether to file, what you can keep, and how to prepare the right forms.
In This Article
- What Are Arkansas Bankruptcy Laws and Who Qualifies?
- How to File Bankruptcy in Arkansas: Chapter 7 vs. 13
- Chapter 7 Bankruptcy Arkansas: Fast Debt Relief
- Chapter 13 Bankruptcy in Arkansas: Repayment Plans to Keep Your Home
- Arkansas Bankruptcy Exemptions: What You Can Keep
- Step-by-Step: How to File for Bankruptcy in Arkansas
- Arkansas Bankruptcy FAQs 2025
- Getting Legal Help With Arkansas Bankruptcy
What Are Arkansas Bankruptcy Laws and Who Qualifies?
If you're struggling financially and aren't sure what to do, filing for bankruptcy in Arkansas can provide a structured, lawful way to rebuild your finances. Economic changes are making it increasingly difficult for American families to weather job losses, illnesses, and other emergencies, leading to a rise in bankruptcy filings nationwide.
How to File Bankruptcy in Arkansas: Chapter 7 vs. 13
These are the key steps to file for Chapter 7 or Chapter 13 in Arkansas, and how to decide which chapter best fits your goals.
| Chapter 7 "Liquidation" Bankruptcy | Chapter 13 "Repayment Plan" Bankruptcy | Citations | |
|
Duration to Discharge |
three to six months | three to five years | 11 U.S.C. § 727(a); § 1322(d) |
|
Filing Fee |
$338 | $313 | 28 U.S.C. § 1930; as of October 2025 (subject to change) |
|
Potential Property Loss |
Yes. Nonexempt assets are sold for creditors. | No. Filers pay the value of nonexempt assets through the plan and keep the property. | 11 U.S.C. § 541, § 726, § 1322(b)(2) |
|
Means Test Required |
Yes. Income can't exceed limits; filers must not have disposable income to repay debts. |
No. However, filers must earn enough to pay the required Chapter 13 plan amount. | 11 U.S.C. § 707(b); § 1325(b) |
|
Debt Limits |
None | Unsecured $526,700; secured $1,580,125 |
11 U.S.C. § 109(e); April 1, 2025 - March 31, 2028 |
|
Best For |
Lower income, limited assets. |
Regular income, want to avoid property loss. |
11 U.S.C. § 101(10A); § 109(e) |
|
Biggest Benefits |
Erases most debts quickly without requiring repayment. |
Saves homes and cars by catching up on payments over time; can pay to keep property that would be lost in Chapter 7; can repay nondischargeable debts over time. |
11 U.S.C. § 362 (automatic stay) |
|
Main Downsides |
Property not covered by exemptions is lost. |
The repayment plan requires payment of all disposable income to creditors for years, with court oversight. Payment isn't always affordable. |
11 U.S.C. § 727(a); § 1307 |
|
Mortgage and Car Payments |
No catch-up for missed payments, risk of property loss to the lender. | Can catch up on missed payments in the plan and keep a house, car, or other property serving as collateral. | 11 U.S.C. § 1322(b)(5) |
|
Nondischargeable Debts |
Debts that aren't eliminated include child support, many taxes, and student loans. Debt will remain after bankruptcy. |
Nondischargeable debts are repaid in the plan. | 11 U.S.C. § 523(a) |
|
Previous Filings |
8 years after prior Ch. 7; 6 after Ch. 13 |
4 years after Ch. 7; 2 years after Ch. 13 |
11 U.S.C. § 727(a)(8); § 1328(f) |
Chapter 7 Bankruptcy Arkansas: Fast Debt Relief
If your primary goal is to erase debt fast, Chapter 7 bankruptcy is the best option. It eliminates unsecured debts, such as credit cards and medical bills, typically within a few months. However, you could lose property exceeding Arkansas's exemption limits because the Chapter 7 trustee can sell that property to repay creditors.
Who Qualifies for Chapter 7 Bankruptcy in Arkansas
The steps you'll need to take will depend on whether your income falls below or above your state's median income. The U.S. Trustee Program "Means Testing" page has current amounts.
Income Below Median
If your gross yearly family income is below Arkansas's median income for your family size, you qualify. For a filing between November 1, 2025, and May 14, 2026, you would be eligible at or below the following limits:
- $56,923 for a one-person household
- $71,742 for a two-person household
- $80,218 for a three-person household, and
- $94,566 for a four-person household.
Income Above Median
If your gross family income is higher than the median, an additional "means test" calculation is necessary to determine your eligibility. This test lets you subtract expenses from your income and determines whether you have anything left to pay creditors.
Take the bankruptcy eligibility quiz. Find out about particular issues and whether you qualify by taking the Chapter 7 bankruptcy quiz.
Chapter 13 Bankruptcy in Arkansas: Repayment Plans to Keep Your Home
Chapter 13 creates a repayment plan lasting three to five years. Most people pay a minimal amount toward debts they can discharge (erase).
Chapter 13 vs. Chapter 7 Bankruptcy in Arkansas
Chapter 13 can help prevent foreclosure or repossession, allowing filers to keep assets like homes and cars while catching up on missed mortgage or vehicle payments. Because Chapter 7 doesn't have a repayment plan, most people lose their home or car if they file when they're behind.
Chapter 13 Income Requirements and Eligibility in Arkansas
A fundamental requirement for Chapter 13 is having a regular income source to fund your repayment plan. Also, your total debt must fall within specific limits, which are updated periodically (check the chart above for current amounts).
Try the payment calculator. Estimate your Chapter 13 repayment plan in minutes using the Chapter 13 payment calculator.
Arkansas Bankruptcy Exemptions: What You Can Keep
You keep assets protected by specific bankruptcy exemptions. In Chapter 7, nonexempt property is sold for the creditors. In Chapter 13, you can keep nonexempt property by paying its value in your repayment plan.
You can choose whether you use the state exemption list or the list of federal bankruptcy exemptions, but you can't mix and match exemptions from both sets. The federal bankruptcy exemption amounts below are valid until March 31, 2028.
Federal Exemptions vs. Arkansas State Exemptions Table
| Federal Exemptions | Arkansas Exemptions | |
|---|---|---|
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Homestead or Residential Property |
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| Motor Vehicles |
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| Personal Property and Wildcard |
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| Trade Implements |
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| Alimony, Support, Separate Maintenance |
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| Claims for Negligence or Tortious Conduct |
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Crime Victims' Compensation |
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Fraternal Benefit Society Benefits |
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Insurance Benefits |
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Pensions & Retirement Benefits |
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Public Assistance |
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Wages |
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Partnership Property |
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Tenancies by the Entirety |
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Step-by-Step: How to File for Bankruptcy in Arkansas
When you first file, both the Chapter 13 and Chapter 7 processes are similar.
Step 1. Complete Credit Counseling
Complete a U.S. Trustee-approved credit counseling course within 180 days before filing. Also, make sure you are prepared to file for bankruptcy by securing housing, transportation, and a bank account in good standing.
Step 2. Assemble Financial Documents
Gather all financial documents you'll need to complete and file the bankruptcy forms, including pay stubs, tax returns, bank statements, and debt lists (we've highlighted what you'll need below).
Step 3. File in the Correct Arkansas District
File your forms with the Arkansas District Bankruptcy Court. On the website, you'll find instructions for filing your paperwork, local rules, and more. Fees can be waived or paid in installments. Once you file, the automatic stay will go into effect. Almost all collection efforts, lawsuits, garnishments, and foreclosures stop when you file.
Step 4. Attend the 341 Meeting of Creditors
Attend this mandatory court-supervised session. After the 341 meeting, all filers complete the second required U.S. Trustee-approved course, debtor education. Chapter 13 filers must also attend a plan confirmation (approval) hearing and complete the repayment plan.
Step 5. Receive the Discharge
After fulfilling requirements, the court issues a discharge order that erases eligible debts.
Step 6. After Filing for Bankruptcy in Arkansas
After discharge, you'll want to maintain financial stability by reviewing your credit report and rebuilding credit. Maintaining emergency savings is another good way to avoid another bankruptcy.
Learn more details about bankruptcy and whether it's better to file for Chapter 7 or 13.
Arkansas Bankruptcy FAQs 2025
- Can I keep my car if I file for bankruptcy in Arkansas?
- Will I lose my house in bankruptcy in Arkansas?
- Can I file bankruptcy again if I've filed before?
- How much does bankruptcy cost?
- How long does bankruptcy stay on my credit report?
- How long does Chapter 7 take in Arkansas?
- Can I file bankruptcy without a lawyer in Arkansas?
- What debts can't be discharged in a Arkansas bankruptcy?
Can I keep my car if I file for bankruptcy in Arkansas?
You can keep a vehicle if your equity is within the exemption limit. If it's financed, you must be and stay current on payments in Chapter 7. You can catch up on missed payments and keep your car in Chapter 13.
Will I lose my house in bankruptcy in Arkansas?
As long as your home equity is exempt and you stay current on payments, you should be able to keep your house in Chapter 7. If you're behind on payments, Chapter 13 allows you to catch up and keep your home. Learn which chapter to file to keep your house.
Can I file bankruptcy again if I've filed before?
Yes, but bankruptcy waiting periods apply. You must wait eight years between Chapter 7 filings. The time is reduced to six years if you choose to file for Chapter 13 after filing for Chapter 7.
How much does bankruptcy cost?
You'll pay filing fees, counseling and debtor education course fees, as well as attorney costs, which vary according to the bankruptcy chapter and case complexity. A Chapter 7 case typically costs between $1,800 and $3,500. You'll likely pay $3,500 to $5,000 for Chapter 13. Chapter 7 costs must be paid in full before filing. However, legal fees can be included in the Chapter 13 plan.
How long does bankruptcy stay on my credit report?
Chapter 7 remains on your credit report for up to 10 years. Chapter 13 stays on your credit report for seven years. However, the impact diminishes over time, and many people see credit improvement within a year or two.
How long does Chapter 7 take in Arkansas?
Chapter 7 typically takes three to five months to complete. While you'll receive your discharge within that time, the case could remain open longer if the trustee needs to sell property or resolve litigation.
Can I file bankruptcy without a lawyer in Arkansas?
Many people can file for bankruptcy without a lawyer if they're willing to do the proper research. Simple Chapter 7 cases tend to be the most successful—those with dischargeable debts and minimal assets. Bankruptcy courts advise against filing a Chapter 13 without a lawyer because Chapter 13 cases are complicated and rarely successful without a lawyer's help.
What debts can't be discharged in an Arkansas bankruptcy
You won't be able to eliminate support obligations and most taxes. Student loans can be eliminated, but you must file a bankruptcy lawsuit and prove that paying the loans would be an "undue hardship." Learn more about nondischargeable debts in bankruptcy.
Getting Legal Help With Arkansas Bankruptcy
Did you know Nolo has made the law accessible for over fifty years? It's true, and we wholeheartedly encourage research and learning. However, online articles and resources can't address all bankruptcy issues and aren't written with the facts of your particular case in mind. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
In This Article
- What Are Arkansas Bankruptcy Laws and Who Qualifies?
- How to File Bankruptcy in Arkansas: Chapter 7 vs. 13
- Chapter 7 Bankruptcy Arkansas: Fast Debt Relief
- Chapter 13 Bankruptcy in Arkansas: Repayment Plans to Keep Your Home
- Arkansas Bankruptcy Exemptions: What You Can Keep
- Step-by-Step: How to File for Bankruptcy in Arkansas
- Arkansas Bankruptcy FAQs 2025
- Getting Legal Help With Arkansas Bankruptcy
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