Arkansas Bankruptcy Exemptions — What You Keep
What property you can protect when filing for bankruptcy in Arkansas — homestead, personal property, vehicle, wage, and retirement exemptions.
Arkansas's exemption system
Arkansas requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific Arkansas exemption amounts below control what you can protect.
Key Arkansas exemptions
Homestead §16-66-210
unlimited value (1/4 acre in city or 80 acres rural); $2,500 minimum if property is smaller. Arkansas homestead exemption is unlimited in dollar value within acreage limits. Must be the debtor's principal residence. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.
Personal property §16-66-218
$500 in personal property (plus specific items: clothing, Bible, portraits, school books are fully exempt). Arkansas personal property exemptions are very limited. Married persons and heads of family may claim $500 in personal property. Specific items such as clothing, Bibles, school books, and family portraits are exempt without dollar limit. This covers household goods, furnishings, clothing, and everyday personal items.
Vehicle §16-66-218
included in $500 personal property exemption. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.
Wages §16-66-208
60 days of earned but unpaid wages (head of family); 30 days for single debtor; federal garnishment limits also apply. This applies to wages already earned but not yet paid at the time of filing.
Retirement accounts §16-66-209
ERISA-qualified plans, IRAs, and state and local public employee retirement systems are fully exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).
Tools of trade §16-66-218
tools, books, and implements of trade up to $750. This protects the equipment you need to earn a living.
Arkansas exemption comparison
| Homestead | Personal property | Wildcard | |
|---|---|---|---|
| What it protects | Equity in your primary residence §11 U.S.C. § 522 | Household goods, furnishings, clothing §11 U.S.C. § 522 | Any property not covered by other exemptions §11 U.S.C. § 522 |
| Arkansas limit | unlimited value (1/4 acre in city or 80 acres rural); $2,500 minimum if property is smaller §16-66-210 | $500 in personal property (plus specific items: clothing, Bible, portraits, school books are fully exempt) §16-66-218 | Not available |
| Key limitation | Primary residence only — not investment property §11 U.S.C. § 522 | Individual item and aggregate caps may apply §11 U.S.C. § 522 | Total cap across all wildcard-claimed property §11 U.S.C. § 522 |
| Strategic value | Can be the largest exemption | Protects everyday necessities | Fills gaps left by specific exemptions |
How exemptions affect chapter choice
- In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
- In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.
Common exemption planning considerations
- Is your home equity within the homestead limit, or does it exceed the cap?
- Do you have a vehicle loan that reduces your equity below the exemption?
- Are there assets that could be reclassified or converted to exempt form before filing?
- Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?
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Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
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Related guides
- unlimited value (1/4 acre in city or 80 acres rural); $2,500 minimum if property is smaller
- Arkansas homestead exemption is unlimited in dollar value within acreage limits. Must be the debtor's principal residence.
- $500 in personal property (plus specific items: clothing, Bible, portraits, school books are fully exempt)
- 60 days of earned but unpaid wages (head of family); 30 days for single debtor; federal garnishment limits also apply