Western District of Arkansas Bankruptcy Cases

You may choose to use your Arkansas exemptions or the federal non-bankruptcy exemptions. If you choose to use your Arkansas exemptions, you may not use any of the federal non-bankruptcy exemptions.

Arkansas Bankruptcy Exemptions

There are two types of property that you can exempt in Arkansas: “non-exempt” property and “exempt” property. Non-exempt property is property that must be sold by a trustee if it is not exempted or protected, or if you do not pay the debt on it. Property that is exempt will still be yours after bankruptcy as long as you comply with the exemption law - up to the dollar amount listed below. You must claim your Arkansas bankruptcy exemptions on your bankruptcy forms; if you do not claim them, they will not apply. If there is a lien (mortgage) against your home, and it applies to more than one item of real estate owned by you, only one homestead exemption may be taken for each residence regardless of whether there are separate titles for each residence. The following table lists many common assets that fall into each category along with their dollar limit under Arkanas law:

ASSET EXEMPTION AMOUNT

• Homestead $25,000 Real Estate (personal)
• $15,000 Motor Vehicle
• $3,500 Tools of Trade
• $10,000 Public Benefits/Unemployment Compensation
• $2,400 Retirement Accounts (403(b), IRA's etc.)
• $1 million IRAs & 401Ks additional amounts allowed above Federal Limits Life Insurance Policy 10% Personal Property
• Up to $6,300 plus household goods and furnishings Clothing
• Up to $600 Jewelry
• Up to 50% Cash on hand
• Up to 5% Total Value Unsecured Creditors Allowed Debts Under 3 Years Old
• Allowed Debts Over 3 Years Old
• Allowed Wages Not Exempt from Garnishment Social Security Disability Income Tax Levy Any Amount over 100% earned income tax credit
• State Taxes Any Amount over 100% earned income tax credit
• Student Loans Any Amount over 100% earned income tax credit
• Health Savings Account Any Amount over 100% earned income tax credit
• Alimony Paid Any Amount over 100% earned income tax credit
• Child Support Paid Any Amount over 100% earned income tax credit
• Spousal Maintenance Paid Any Amount over 100% earned income tax credit