📅 2026 Update: Changes in Arkansas Bankruptcy Law

Since the original article was written, several important updates have taken place in the realm of bankruptcy in Arkansas. Changes in filing fees and exemptions are significant for those considering bankruptcy. The details below will help you understand how these updates affect the bankruptcy process.

💰 Current Bankruptcy Filing Fees

As of December 1, 2023, the filing fees for bankruptcy have changed. The Chapter 7 filing fee is now $338, while the Chapter 11 fee has increased to $1,738. Understanding these fees is crucial for anyone planning to file for bankruptcy.

  • 🏦 Chapter 7 Fee: $338 nationwide.
  • 📈 Chapter 11 Fee: $1,738 nationwide.
  • 🏠 Chapter 13 Fee: $313 nationwide.

📝 Steps to File for Bankruptcy

Filing for bankruptcy includes several steps that remain unchanged. You must complete the bankruptcy petition, attend a 341 meeting of creditors, and finish a financial management course. These steps are essential for successfully navigating the bankruptcy process.

  • 📅 341 Meeting: Scheduled about a month after filing.
  • 📚 Financial Management Course: Required before discharge.

⏳ Processing Times for Bankruptcy

The time it takes to process bankruptcy cases has not changed significantly. Typically, a Chapter 7 discharge is granted within three to six months. Chapter 13 plans usually last between three to five years depending on individual circumstances.

  • ⏰ Chapter 7 Duration: 3 to 6 months.
  • 📆 Chapter 13 Duration: 3 to 5 years.

💡 Homestead Exemption Changes

While Arkansas has its own homestead exemption, it’s important to note changes in other states as well. For instance, starting July 1, 2026, Minnesota’s homestead exemption will increase to $540,000 for residential properties. This change highlights the varying protections available in different states.

📌 Key Points to Remember

  • 💵 Bankruptcy filing fees have increased.
  • 📑 Filing involves a series of mandatory steps.
  • ⏳ Chapter 7 discharges typically take 3 to 6 months.
  • 🏡 Homestead exemptions vary by state and can change.
  • 🆓 Free legal aid may be available for assistance.

💡 Tips for Navigating Bankruptcy in Arkansas

Reviewing the details of your financial situation with an attorney is essential to prepare for bankruptcy.

📊 Understand the Means Test

The means test is a crucial part of qualifying for Chapter 7 bankruptcy. It assesses your income against state averages to determine eligibility. Ensure you understand your financial position before filing.

🏠 Review State-Specific Exemptions

Each state has different exemptions that may protect your assets during bankruptcy. Be aware of what property you can keep in Arkansas. This knowledge is vital in planning your bankruptcy filing.

🔍 Keep Track of Deadlines

Meeting deadlines is crucial in the bankruptcy process. You must complete the means test before filing for Chapter 7. Additionally, attending the 341 meeting is mandatory, so mark your calendar.

💳 Rebuilding Credit After Bankruptcy

After bankruptcy, rebuilding your credit is possible. Consider using secured credit cards and making timely payments. This can improve your credit score over time.

📞 Seek Free Assistance

Utilize free resources available through legal aid organizations or the U.S. Trustee Program. These can provide valuable support and guidance throughout the bankruptcy process.

🏆 Arkansas Bankruptcy Services Ranked by User Reviews (2026)

This section highlights companies that offer services related to debt relief and legal document preparation, relevant to those considering bankruptcy. The order follows Trustpilot data checked in October 2026, and scores can change. Remember, star ratings are just one way to assess a service, as unhappy customers often leave more reviews.

🥇 1. National Debt Relief

National Debt Relief has a Trustpilot score of 4.5. It is known for providing debt relief services and consumer financial assistance. Many users appreciate the effective support, but there have been some concerns about unexpected fee deductions and administrative charges.

🥈 2. LawDepot

LawDepot holds a Trustpilot score of 4.0. This service specializes in legal document preparation and offers affordable legal forms. While it is generally well-reviewed, some customers have reported limited support and occasional document errors, which can impact those needing precise legal forms for bankruptcy.

🆓 Free Government Assistance

Legal aid organizations provide free or low-cost assistance for individuals seeking help with bankruptcy. Availability varies by state, and these resources can be essential for navigating the process without incurring additional expenses.

🔎 Factors to Compare When Choosing Services

  • 📊 Customer Ratings: Check Trustpilot scores and read reviews.
  • 🏷️ Fees: Understand any additional charges that may apply.
  • 📞 Support: Evaluate the level of customer service offered.
  • 📝 Document Accuracy: Ensure the service provides accurate legal forms.
  • 🤝 Reputation: Review the company's history in the debt relief space.

❓ Frequently Asked Questions

🤔 What is the automatic stay?

The automatic stay is a legal provision that stops creditors from collecting debts once you file for bankruptcy. It provides immediate relief from creditors.

🏡 How does the homestead exemption work in Arkansas?

In Arkansas, the homestead exemption protects a portion of your home equity during bankruptcy. The exact amount can vary, so it is essential to check state laws for the current limits.

⏳ How long does bankruptcy stay on my credit report?

Bankruptcy can remain on your credit report for up to 10 years. This can affect your credit score, but rebuilding is possible.

💡 What is a financial management course?

A financial management course is required before your debts can be discharged in bankruptcy. It teaches you how to manage your finances effectively.

📅 What happens if I miss a bankruptcy deadline?

Missing a bankruptcy deadline can result in case dismissal. It is crucial to adhere to all court-imposed timelines to avoid complications.

🏦 Can I file for Chapter 13 if I earn too much?

Yes, you can file for Chapter 13 if you exceed the income limits for Chapter 7. This chapter allows you to create a repayment plan based on your income.

⚖️ Recent Court Rulings in Bankruptcy Cases

Several recent court rulings have impacted bankruptcy laws and procedures, particularly in Arkansas. These decisions can influence how bankruptcy cases are handled in the state.

For more information on recent rulings, check out more rulings on the news page.

End of October 2026 Update






 



A Short Introduction Arkansas Bankruptcy Law



 

Arkansas Bankruptcy


Before Filing for Arkansas Bankruptcy



 



Individuals are required to get credit counseling no earlier than 180 days before filing for Arkansas bankruptcy. Though some exemptions are granted, they can only be applied for with the rest of your bankruptcy petition, and it will throw out your entire case is the exemption is not granted. The United States Department of Justice has a list of approved Arkansas credit counselors here: 



 



All companies are required to have legal representation when filing for bankruptcy, and it is recommended that private individuals do as well because of the high consequences of incorrect filing. To find a pro bono legal service that can aid you for low or no cost, provided you are eligible, consult this list of Arkansas bankruptcy legal services: https://apps.americanbar.org/legalservices/probono/directory/arkansas.html.



 



Filing for Arkansas Bankruptcy



 



There are two locations available for the United States Bankruptcy Courts, the main court 300 W. Second Street in Little Rock and the Fayetteville branch at 35 E. Mountain.  Most filings can also be done electronically. Additional courts located across the state may also be of use for finding forms and doing some official business.



 



There are many different forms that need to be filled out in order for you to file for bankruptcy. Besides the federal forms which can be found at the U.S. Courts website, there are local forms such as the affidavit and request to file, the intent to request redaction, and the matrix list waiver which may or may not be necessary depending on your filing needs. Those can be picked up at the nearest Arkansas Bankruptcy Court.



 



Corporate Arkansas Bankruptcy



 



Most businesses file for one of two types of Arkansas bankruptcy, depending mainly on their anticipated future revenue. These are the two types, called chapters:



 



• Chapter 7: This is the best option available for businesses who don’t anticipate ever being able to raise enough funds to become a profitable business. After the Arkansas bankruptcy is recognized by the Court, the bankrupt business’s assets are sold for money or liquidated and these funds then go towards paying creditors. Banks are given first crack at the money to get paid their loaned funds, then unsecured creditors such as bondholders get reimbursed, and finally stockholders, though there is seldom any money left for them.



 



• Chapter 11: Many companies find themselves unable to keep up debt payments but are hopeful that with some reorganization they may be able to become a profitable business. These companies file for Chapter 11 Arkansas bankruptcy, which allows for court overseen corporate restructuring as well as the construction of a debt repayment plan. Companies that have filed for Chapter 11 bankruptcy remain in possession of their assets (or their stockholder remain in possession, in the case of public companies).



 



Personal Arkansas Bankruptcy



 



Declaring personal Arkansas bankruptcy may be the best way for high-debt individuals to move on with their lives. These are the different personal options for Arkansas bankruptcy.



 



• Chapter 7: As with corporate bankruptcy, Chapter 7 allows for the liquidation of personal property to pay off debt. Therefore, individuals who own little may benefit the most from Chapter 7 Arkansas bankruptcy since they stand to lose little while absolving themselves of their debt, which is usually credit card debt or similar debt.



 



• Chapter 13: Individuals seeking Chapter 11 bankruptcy are usually not eligible for Chapter 7 because of the stringency of Arkansas bankruptcy law, which mandates that only people earning less than the state median can file for Chapter 7 or people who pass an Arkansas Means Test. Chapter 13 allows the individual to keep their property, but mandates that most of their discretionary income be used to pay creditors.



 



Taxes



 



Arkansas Bankruptcy Courts don’t allot individuals suffering from severe tax debts many avenues to better their financial positions, since its governmental nature makes governments reluctant to absolve it. Sometimes, however, this occurs and you should contact an Arkansas Bankruptcy Lawyer to learn more about when this can happen.