Arkansas Laws on Wage Garnishments, Statute of Limitation on Debt, and Bankruptcy Property Exemptions

$500 of income is exempt from garnishment if one is the head of family; $200 if single. Since federal law offers better exemption, it applies

MAXIMUM INTEREST RATE:  Legal: 6% or 5 points above the federal discount rate
Judgment: Contract rate or 10% per annum, whichever is greater


Open Account (credit card): 3 years
Written Contract: 5 years
Sale of Goods: 4 years
Domestic Judgment: 10 years (judgment is renewable)
Foreign Judgment: 10 years


Twice the amount of check or $15 per check after 30 days
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You can use either the state exemptions below or the federal exemptions.  The State of Arkansas allows debtors to exempt (or keep) the property below when filing bankruptcy:

Real Estate:  Real or personal property used as residence, but only if head of family, unlimited value for up to 1/4 acre in city or town, or 80 acres elsewhere.  If property is between 1/4 and 1 acre in city or town, or 80 - 160 acres elsewhere, up to $2,500 and no homestead may exceed one acre in city or town, or 160 acres elsewhere [16-66-210 and 16-66-218(b)(3)]

Personal Property:  Burial plot to 5 acres in lieu of homestead option 2 [16-66-207 and 16-66-218(a)(1)]; clothing, unlimited amount [Arkansas Constitution 9-1 and 9-2]; motor vehicle to $1,200 [16-66-218(a)(2)]; wedding rings, unlimited amount, but any diamonds cannot exceed 1/2 carat [16-66-218(a)(3)]; implements, books and tools of trade up to $750 [16-66-218(a)(4)]
Insurance / Annuities:  Disability benefits, unlimited amount [23-79-133]; group life insurance, unlimited amount [23-79-132]; life, health, accident or disability cash value or proceeds paid or due (limited to $500 personal property exemption in Secs. 9-1 and 9-2 of Arkansas Constitution) [16-66-209]; annuity contract, unlimited amount [23-79-134]; fraternal society benefits, unlimited amount [23-74-403]; mutual life or disability insurance benefits to $1,000 [23-72-114]; stipulated insurance premiums, unlimited amount [23-71-112]; life insurance proceeds if beneficiary is not the insured, unlimited amount [23-79-131]; life insurance proceeds if policy prohibits proceeds from being used to pay creditors, unlimited amount [23-79-131]
Pensions / Retirement Plans:  Firefighters, unlimited amount [24-11-814]; police officers, unlimited amount [24-11-417]; IRA deposits to $20,000, if deposits exceed 1 year before filing bankruptcy (limit applied to individual debtor and husband/wife combined) [16-66218(b)(16)]; school employees, unlimited amt [24-10-616]; state police officers, unlimited amount [24-6-223]
Public Benefits / Entitlements:  Public assistance; crime victims' compensation up to $10,000 [16-90-716(e)]; unemployment compensation, unlimited amount [11-10-109]; workers' compensation, unlimited amount [11-9-110]
Wages:  Earned but unpaid wages due for 60 days, up to $500 if married or head of household, up to $200 otherwise (16-66-208 and 16-66-218(b)(6)]
Miscellaneous:  Business partnership property, unlimited amount [4-42-502]; any property up to $800 if single or up to $1,250 if married [16-66-218(a)(1)]