Bankruptcy Laws - Arkansas

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

Some individuals find the federal exemption list more favorable, especially if they do not own a home but have other high-value personal assets. Mandatory Filing Requirements arkansas bankruptcy laws

This process eliminates most unsecured debts, like credit cards or medical bills, and usually concludes within three months. To qualify, you must pass a means test , ensuring your household income is below the state median. Often called a "wage earner’s plan," this allows

To initiate a case in Arkansas, you must meet several administrative and legal hurdles: You cannot mix the two; you must pick

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

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.

As of 2026, the standard filing fee is $338 for Chapter 7 and $313 for Chapter 13 . If your income is below 150% of the federal poverty level, you may apply for a fee waiver .