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
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.
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. arkansas bankruptcy laws
Individuals typically choose between two main paths based on their income and long-term goals:
You must have lived in Arkansas for at least the six months prior to filing. Often called a "wage earner’s plan," this allows
To initiate a case in Arkansas, you must meet several administrative and legal hurdles:
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 To qualify, you must pass a means test
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