The Arkansas bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Arkansas. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
In Arkansas, you also have the choice of using the federal exemption statutes instead of your Arkansas exemptions.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Arkansas you may also use certain federal exemptions in addition to your Arkansas exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD Choose option 1 or 2, NOT BOTH | Rural homestead: up to 160 acres not to exceed $2500 value; and homestead is no less than 80 acres without regard to value (husband and wife may not double, In re Stevens, 829 F.2d 693 (8th Cir. 1987)) Urban homestead: up to 1 acre not to exceed $2500 value; and homestead is no less than 1/4 acre without regard to value | Constitution 9-3, 9-4, 9-5; 16-66-210, 16-66-218(b)(3), (4)
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| 2.) Real or personal property used as residence, to $800 if single; $1,250 if married | 16-66-218(a)(1) |
INSURANCE | Annuity contract | 23-79-134 |
Disability benefits | 23-79-133 | |
Fraternal benefit society benefits | 23-74-403 | |
Group life insurance | 23-79-132 | |
Life, health, accident or disability cash value or proceed paid or due (limited to the $500 exemption provided by §§ 9-1 and 9-2 of the Arkansas Constitution, In re Holt, 97 B.R. 997 (W.D. Ark. 1988).) |
16-66-209 | |
Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors | 23-79-131 | |
Life insurance proceeds or avails if beneficiary isn’t the insured | 23-79-131 | |
Mutual assessment life or disability benefits to $1,000 | 23-79-114 | |
Stipulated insurance premiums | 23-71-112 | |
MISC. | Property of business partnership | 4-42-502 |
PENSIONS
| Disabled firefighters | 24-11-814 |
Disabled police officers | 24-11-417 | |
Firefighters | 24-10-616 | |
IRA deposits to $20,000b if deposited over 1 year before filing bankruptcy | 16-66-218(b)(16) | |
Police officers | 24-10-616 | |
School employees | 24-7-715 | |
State police officers | 24-6-202, 24-6-205, 24-6-223 | |
PERSONAL PROPERTY | Burial plot to 5 acres, in lieu of homestead option 2 | 16-66-207, 16-66-218(a)(1) |
Clothing | Constitution 9-1, 9-2 | |
Motor vehicle to $1,200 | 16-66-218(a)(2) | |
Wedding bands; any diamond can’t exceed ½ carat | 16-66-218(a)(3) | |
PUBLIC BENEFITS | Aid to blind, aged, disabled, AFDC | 20-76-430 |
Crime victim’s compensation unless seeking to discharge debt for treatment of injury incurred during the crime | 16-90-716(e) | |
Unemployment compensation | 11-10-109 | |
Workers’ compensation | 11-9-110 | |
TOOLS OF TRADE | Implements, books and tools of trade to $750 | 16-66-218(a)(4) |
WAGES | Earned but unpaid wages due for 60 days; in no event under $25 per week | 16-66-208, 16-66-218(b)(6) |
WILD CARD | $500 of any personal property if married or head of family; else $200 | Constitution 9-1, 9-2; 16-66-218(b)(1), (2) |
For more information on filing bankruptcy in Arkansas explore Arkansas Bankruptcy Law.
