Arkansas Bankruptcy, Answered Plainly
What it costs, what you keep, how fast the collection calls and garnishments stop — the questions Arkansans actually ask, answered by a licensed Arkansas bankruptcy attorney.
Talk to a lawyer, free. Every case starts with a free debt analysis by phone or video — we look at your whole situation and tell you the truth, even if the answer is “do nothing.”
How much does it cost to file Chapter 7 bankruptcy in Arkansas?
The court filing fee for a Chapter 7 case is about $338, paid to the bankruptcy court, plus attorney fees if you hire a lawyer. Most consumer bankruptcy attorneys in Arkansas (including this office) charge a flat fee quoted in writing up front, and the court can let you pay the filing fee in installments. If your income is below 150% of the federal poverty line, you may qualify to have the filing fee waived entirely.
Will I lose my house or my car if I file bankruptcy in Arkansas?
Most Arkansas Chapter 7 filers keep everything they own. Property is protected by exemptions, and Arkansas is one of the states that lets you choose between the Arkansas state exemption list and the federal exemption list — whichever protects your particular assets better. If you're current on a mortgage or car loan and the equity fits within your exemptions, you can generally keep the home or vehicle and continue paying for it.
How long does Chapter 7 bankruptcy take in Arkansas?
Typically about three to five months from filing to discharge. Roughly a month after filing you attend a short meeting of creditors (the “341 meeting”) with the trustee — usually ten minutes, often held by phone or video. If no issues come up, the court enters your discharge about two months after that, wiping out the debts that qualify.
Does filing bankruptcy stop wage garnishment in Arkansas?
Yes, immediately. The moment a bankruptcy case is filed, a federal court order called the automatic stay stops wage garnishments, bank levies, collection lawsuits, repossessions, and collector phone calls. Employers and creditors who keep garnishing after the filing are violating a federal injunction. In some cases, money garnished shortly before the filing can even be recovered.
What's the difference between Chapter 7 and Chapter 13 in Arkansas?
Chapter 7 wipes out qualifying unsecured debt (credit cards, medical bills, personal loans) in a few months and is the right fit for most people whose income is at or below the Arkansas median. Chapter 13 is a three-to-five-year court-supervised repayment plan — it's the tool for catching up missed mortgage payments to stop a foreclosure, protecting property a Chapter 7 trustee might sell, or dealing with debts Chapter 7 can't fix.
What is the bankruptcy means test, and will I pass it in Arkansas?
The means test compares your household income to the Arkansas median for a household your size. If you're at or below the median, you qualify for Chapter 7 automatically. If you're above it, you may still qualify after deducting allowed expenses — and if not, Chapter 13 remains available. Many working Arkansans pass the means test; it's a calculation worth having a lawyer run before assuming you don't qualify.
What debts does bankruptcy NOT erase?
Some debts generally survive bankruptcy: most student loans, recent income taxes, child support and alimony, criminal fines and restitution, and debts incurred by fraud. Almost everything else — credit cards, medical bills, personal loans, repossession deficiencies, old utility and phone bills, most payday loans — can be discharged. A big part of the free debt analysis is sorting your debts into these two buckets before you decide anything.
How badly will bankruptcy hurt my credit?
Less than most people fear, and often less than the alternative. A Chapter 7 stays on your credit report up to ten years and a Chapter 13 up to seven — but if you're already being sued, garnished, or charged off, your credit is taking that damage now, every month. Most filers see scores begin recovering within a year of discharge, and many qualify for car loans and even FHA mortgages within one to two years of finishing.
Do my spouse and I both have to file bankruptcy?
No. One spouse can file alone in Arkansas. The discharge only erases the filing spouse's liability — so if a debt is in both names, the creditor can still pursue the non-filing spouse. Whether to file alone or together depends on whose names the debts are in, and it's one of the first things we look at in a free analysis.
Do I have to go to court if I file bankruptcy in Arkansas?
Almost certainly not in front of a judge. Arkansas cases are filed in the Eastern or Western District of Arkansas bankruptcy courts, and the only required appearance for a routine case is the 341 meeting of creditors — a short, informal meeting with the trustee, frequently conducted by phone or video. Contested hearings happen only if a dispute arises, which is uncommon in well-prepared consumer cases.
Can I file bankruptcy in Arkansas without a lawyer?
Legally, yes — practically, it's risky. Filing pro se means getting the means test, exemption elections, schedules, and required credit-counseling certificates right on your own; mistakes can cost you property that proper exemption planning would have protected, or get the case dismissed. If cost is the concern, say so in the consultation — flat fees, payment timing, and whether you even need to file are exactly what the free analysis is for.
Is bankruptcy even the right move — or should I do something else?
Sometimes the honest answer is don't file. If your income and property are legally protected from collection (Social Security, disability, exempt wages), you may be “judgment proof” and able to safely do nothing. Other times, defending the lawsuit or negotiating a settlement beats filing. That's why this practice starts every case with a whole-situation debt analysis instead of a bankruptcy sales pitch — bankruptcy, fighting back, or doing nothing at all.
Ready for a straight answer? Asa King is a licensed attorney (Arkansas & New Mexico, admitted to the 8th Circuit and the U.S. Supreme Court) who represents people — never debt collectors or debt buyers. Consultations are by phone or video, statewide.
This page is general legal information for Arkansas, not legal advice about your specific situation. Laws, court fees, and exemption amounts change. For advice you can rely on, speak with a licensed attorney. Attorney advertising.