Bankruptcy Laws: Arkansas

Arkansas is unique because it allows debtors to choose between and federal exemptions . You cannot mix the two; you must pick the entire list from one or the other.

Individuals typically choose between two main paths based on their income and long-term goals:

Immediately upon filing, an "automatic stay" goes into effect, which legally prohibits creditors from calling, suing, or continuing wage garnishments against you. Non-Dischargeable Debts arkansas bankruptcy laws

Often called a "wage earner’s plan," this allows you to keep property by paying back some or all of your debt through a court-approved repayment plan lasting 3 to 5 years . It is a frequent choice for those looking to stop foreclosure or catch up on past-due car payments. Key Arkansas Bankruptcy Exemptions

All filers must complete a pre-filing credit counseling course and a post-filing debt management course from approved providers. Arkansas is unique because it allows debtors to

Certain debts generally cannot be wiped out in an Arkansas bankruptcy, including: Child support and alimony. Most student loans, unless you can prove "undue hardship". Recent tax debts and debts incurred through fraud. Eastern & Western Districts of Arkansas - Bankruptcy Court

Filing for bankruptcy in Arkansas involves navigating both federal statutes and specific state guidelines that dictate which assets you can keep and how your case is processed through the U.S. Bankruptcy Court for the Eastern and Western Districts of Arkansas . Certain debts generally cannot be wiped out in

Arkansas state law provides specific protections for a single vehicle, necessary household goods, and retirement accounts.