ARKANSAS BANKRUPTCY LAW

Arkansas Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Arkansas Bankruptcy Statistics: In Arkansas, in 2009, 16,583 bankruptcies were filed. Business bankruptcies accounted for 619 or 3.73% and personal bankruptcies accounted for 15,964 or 96.27% of the total filings.

Arkansas State Bankruptcy Exemptions

Homestead

Arkansas has two options for the homestead exemption. The first option allows a married person or head of family to exempt real or personal property used as a residence up to $2,500 in value and a maximum of 1 acre in a city, town or village, or 160 acres elsewhere. The second option exempts real or personal property used as a residence up to $800 for a single individual and up to $1,250 for a married couple.

Personal Property

The following expenses or items are exempt in their entirety:

1. Clothing
2. Wedding rings
3. Pre-paid funeral trusts

The following expenses or items are exempt up to a specified limit:

1. Motor Vehicles are limited to $1,200
2. Burial plots, are limited to 5 acres for debtors who choose homestead exemption Option 2

Pension

The following individuals’ and their survivors’ pension benefits are exempt when filing for bankruptcy in Arkansas:

1. Police officers
2. School employees
3. Firefighters
4. Disabled firefighters
5. Disabled police officers

The following pension types are exempt or partially exempt when filing for bankruptcy in Arkansas:

1. Federal pension exemptions
2. IRAs are limited to $20,000 if deposited more than a year prior to filing for bankruptcy

Insurance

The following insurance types are exempt or partially exempt when filing for bankruptcy in Arkansas:

1. Life, disability, health, or accident value proceeds up to $500 paid or due
2. Insurance premiums
3. Mutual assessment or disability insurance benefits up to $1,000
4. Fraternal society benefits
5. Life insurance proceeds to the beneficiary (if the beneficiary is not the insured and if there is a clause prohibiting the use of proceeds to pay creditors of the beneficiary)
6. Group life insurance
7. Disability benefits
8. Annuity contracts

Public Benefits

The following public benefits are exempt when filing for bankruptcy in Arkansas:

1. Crime victims’ compensation
2. Unemployment compensation
3. Workers’ compensation

Tools of the trade

Implements and books are exempt up to $750 when filing for bankruptcy in Arkansas.

Wages

All earned but unpaid wages are entirely exempt for 60 days, but the debtor can exempt at least $25 per week.

Miscellaneous: None.

Wildcard: Personal property of a single person up to $200; personal property of a married person or head of household up to $500.

Federal Bankruptcy Exemptions: Yes, debtors are allowed to take federal exemptions when filing for bankruptcy in Arkansas.

Arkansas Bankruptcy Court:

United States Bankruptcy Court, Eastern District of Arkansas

United States Bankruptcy Court, Western District of Arkansas