Bankruptcy in Arkansas
In Arkansas you choose state or federal exemptions (exemptions are the property the law lets you keep). Your home (homestead): only if you are married or the head of a family — Rural home: up to 160 acres worth up to $2,500, but never less than 80 acres regardless of value.
You file in one of 2 federal bankruptcy courts:
Checked against official sources: October 25, 2026. · Free letter and checklist ↓
Some of Arkansas's rules rest on limited sources. Check the official sources below, or ask the court or a legal aid office, before you rely on them.
What you can keep in Arkansas
Exemptions are the property the law lets you keep. You pick one whole set: the Arkansas list or the federal list. You can't mix them.
Law: Ark. Code Ann. 16-66-217; 11 U.S.C. 522(b)(1)-(2); 11 U.S.C. 522(d)
| What | Arkansas exemption | Federal exemption |
|---|---|---|
Home (homestead) | Only if you are married or the head of a family. Rural home (outside a city or town): up to 160 acres worth up to $2,500, but never less than 80 acres regardless of value. Home in a city or town: up to 1 acre worth up to $2,500, but never less than 1/4 acre regardless of value. Because of the minimum acreage, a home on 1/4 acre (town) or 80 acres (rural) is protected no matter how much it is worth. Whether your home is rural or urban can be disputed. You must live in Arkansas and occupy the home. Law: Ark. Const. art. 9, sections 3, 4, 5 | $31,575 Law: 11 U.S.C. 522(d)(1) |
Car or other vehicle | — | $5,025 Law: 11 U.S.C. 522(d)(2) |
Household goods and clothing | If you are not married: $200 in personal property you select, plus your clothing. A married person or head of a family has a separate, larger allowance under art. 9, sec. 2. These limits apply to debts from contracts. Law: Ark. Const. art. 9, sec. 1; Ark. Const. art. 9, sections 1 and 2 | Household goods: $800 per item, $16,850 total Jewelry for personal or family use: $2,125 Law: 11 U.S.C. 522(d)(3); 11 U.S.C. 522(d)(4) |
Wildcard (any property) | — | $1,675 plus up to $15,800 of any unused part of the (d)(1) homestead amount Law: 11 U.S.C. 522(d)(5) |
Tools of your trade | — | $3,175 Law: 11 U.S.C. 522(d)(6) |
Retirement accounts | — | No dollar limit (IRAs are capped under 522(n)) Money in traditional and Roth IRAs is protected up to $1,711,975 in total. Law: 11 U.S.C. 522(d)(12); 11 U.S.C. 522(n); 90 FR 8941 |
Public benefits | — | Your right to receive Social Security, unemployment, public assistance, veterans' and disability benefits; alimony and support you reasonably need; and certain pension or annuity payments you reasonably need: No dollar limit (some only as much as you reasonably need) Your right to certain payments: crime victim awards, wrongful-death and life-insurance payments for someone you depended on, personal bodily injury payments (not pain and suffering or actual money losses), and payments for lost future earnings: Crime-victim awards: no limit. Personal injury payment: up to $31,575. Others: as much as you reasonably need Law: 11 U.S.C. 522(d)(10); 11 U.S.C. 522(d)(11) |
Other exemptions | — | An unmatured life insurance policy you own (not credit life insurance): No dollar limit Cash value of life insurance: $16,850 Health aids prescribed by a professional for you or a dependent: No dollar limit Law: 11 U.S.C. 522(d)(7); 11 U.S.C. 522(d)(8); 11 U.S.C. 522(d)(9) |
If you use your state's exemptions, you can protect no more than $214,000 of home equity that you acquired in the 1,215 days (about 3 years and 4 months) before you filed. Equity moved from an earlier home in the same state, bought before that period, does not count. The cap does not apply to a family farmer's main home.
Law: 11 U.S.C. 522(p); 90 FR 8941
Amounts: Constitutional amounts (Constitution of 1874; not indexed), as quoted in official opinions of the U.S. Bankruptcy Court for the Eastern and Western Districts of Arkansas.
Federal amounts: Amounts in effect for cases filed on or after April 1, 2025 (next automatic adjustment due April 1, 2028)
Law: 11 U.S.C. 104; 90 FR 8941-8942
These amounts are per person. If a married couple files one joint case, each spouse can claim the federal exemptions separately.
The means test in Arkansas: first step
Official Form 122A-1 compares your household's yearly income with the median income in Arkansas. Here are the official medians:
- 1 person$58,421
- 2 people$73,630
- 3 people$82,329
- 4 people$97,054
- Each extra person+$11,100
Applies to cases filed on or after April 1, 2026. 1 = one earner; 2, 3, 4 = people in the household; add = amount added for each person over 4
Where to file in Arkansas
You file in the federal bankruptcy district where you lived (your domicile) for most of the 180 days before filing. Arkansas has two districts (Eastern and Western), served by one bankruptcy court with offices in Little Rock and Fayetteville. See court locations: https://www.arb.uscourts.gov/court-info/court-locations.
Law: 28 U.S.C. 1408
Divisions: One court serves both districts; offices in Little Rock and Fayetteville
Clerk's phone: 501-918-5500
Divisions: One court serves both districts; offices in Little Rock and Fayetteville
Clerk's phone: 479-582-9800 (Fayetteville)
Free help in Arkansas
Free letter and checklist
Letter: tell a creditor you filed bankruptcy
Notice to a creditor or debt collector with your case number, court, filing date and chapter.
Checklist: what to gather before you file
Income, tax returns, debts, property and budget papers the federal forms ask about, with Arkansas's courts.
Bankruptcy in Arkansas by topic
The means test in Arkansas
The official median income and the first-step check.
Where to file in Arkansas
The bankruptcy courts, divisions, fees and the 341 meeting.
Good to know in Arkansas
- You can choose either the Arkansas exemptions or the federal exemptions.
Law: Ark. Code Ann. 16-66-217, as quoted in In re Kelley and In re Torres, Bankr. E.D./W.D. Ark
- The Arkansas homestead is based on acreage, not dollars: a married person or head of family can protect at least 1/4 acre in town or 80 acres in the country regardless of value. Courts decide on the facts whether a home is rural or urban (Ark. Const. art. 9, sections 4-5; In re Torres, 2022).
- If you choose the Arkansas exemptions, the court has held that state statutes cannot protect more personal property (such as a car or tools) than the Constitution allows for contract debts, so those statutory claims were disallowed (In re Kelley, Bankr. E.D. Ark. 2011, following the Eighth Circuit in In re Holt).
Questions about bankruptcy in Arkansas
Can I use the federal bankruptcy exemptions in Arkansas?
You can. Arkansas lets you choose the state exemptions or the federal exemptions in 11 U.S.C. 522(d). You must pick one whole set.
What is the homestead exemption in Arkansas?
Only if you are married or the head of a family. Rural home (outside a city or town): up to 160 acres worth up to $2,500, but never less than 80 acres regardless of value. Home in a city or town: up to 1 acre worth up to $2,500, but never less than 1/4 acre regardless of value.
What household goods can I keep in Arkansas?
If you are not married: $200 in personal property you select, plus your clothing. A married person or head of a family has a separate, larger allowance under art. 9, sec. 2. These limits apply to debts from contracts.
Where do I file bankruptcy in Arkansas?
You file in the federal bankruptcy district where you lived (your domicile) for most of the 180 days before filing. Arkansas has two districts (Eastern and Western), served by one bankruptcy court with offices in Little Rock and Fayetteville. See court locations: https://www.arb.uscourts.gov/court-info/court-locations.
What is the median income for the means test in Arkansas?
For cases filed on or after April 1, 2026: 1 person: $58,421; 2 people: $73,630; 3 people: $82,329; 4 people: $97,054; Each extra person: +$11,100.