Arkansas Bankruptcy Exemptions

Arkansas is a “dual-choice” state, meaning you can use Arkansas exemptions and also **some** federal exemptions. Below is a comprehensive list of commonly claimed state-specific exemptions, along with references. Always verify the current amounts and rules with an attorney, as laws and interpretations may change.

Asset / Type of PropertyExemption DescriptionStatute / Law SectionNotes
Homestead – Option 1 (Rural / Urban)Rural: Up to 160 acres not exceeding \$2,500 value; or at least 80 acres without regard to value.
Urban: Up to 1 acre not exceeding \$2,500 value; or 1/4 acre without regard to value.
Ark. Const. art. 9, §§ 3, 4, 5;
A.C.A. §§ 16-66-210; 16-66-218(b)(3), (4)
Cannot be doubled by spouses (see In re Stevens, 829 F.2d 693).
Homestead – Option 2Real or personal property used as a residence, up to **\$800 (single)**; **\$1,250 (married)**.A.C.A. § 16-66-218(a)(1)Must choose either Option 1 or Option 2, not both.
Annuity ContractExempt annuity proceeds.A.C.A. § 23-79-134
Disability BenefitsExempt disability benefits.A.C.A. § 23-79-133
Fraternal Benefit Society BenefitsFully exempt from claims.A.C.A. § 23-74-403
Group Life InsurancePolicy or proceeds are exempt.A.C.A. § 23-79-132
Life, Health, Accident or Disability Cash ValuePaid or due (limited to \$500 under Arkansas Constitution, see In re Holt, 97 B.R. 997).A.C.A. § 16-66-209The Arkansas Constitution art. 9, §§ 1 & 2 limit to \$500.
Life Insurance Proceeds (Anti-Creditor Clause)Exempt if the policy specifically prevents proceeds from being used to pay beneficiary’s creditors.A.C.A. § 23-79-131
Life Insurance Proceeds / Avails if Beneficiary Not the InsuredExempt from claims.A.C.A. § 23-79-131
Mutual Assessment Life / DisabilityUp to **\$1,000** exempt.A.C.A. § 23-79-114
Stipulated Insurance PremiumsGenerally exempt from creditors.A.C.A. § 23-71-112
Property of Business PartnershipExempt from individual partner’s creditors.A.C.A. § 4-42-502
Disabled FirefightersExempt pension benefits.A.C.A. § 24-11-814
Disabled Police OfficersExempt pension benefits.A.C.A. § 24-11-417
FirefightersGeneral firefighter pensions exempt.A.C.A. § 24-10-616
IRA DepositsUp to **\$20,000** if deposited at least 1 year before filing.A.C.A. § 16-66-218(b)(16)
Police OfficersPolice retirement exempt.A.C.A. § 24-10-616
School EmployeesExempt pension/retirement benefits.A.C.A. § 24-7-715
State Police OfficersExempt benefits (retirement, etc.).A.C.A. §§ 24-6-202, 24-6-205, 24-6-223
Burial Plot (Up to 5 acres)May be taken in lieu of homestead Option 2.A.C.A. §§ 16-66-207, 16-66-218(a)(1)
ClothingProtected by Arkansas Constitution art. 9, §§ 1 & 2.Ark. Const. 9-1, 9-2
Motor VehicleEquity up to **\$1,200**.A.C.A. § 16-66-218(a)(2)
Wedding BandsAny diamond cannot exceed 1/2 carat.A.C.A. § 16-66-218(a)(3)
Aid to Blind, Aged, Disabled, AFDCFully exempt.A.C.A. § 20-76-430
Crime Victim’s CompensationExempt unless discharging debt for injury from the crime.A.C.A. § 16-90-716(e)
Unemployment CompensationExempt from claims.A.C.A. § 11-10-109
Workers’ CompensationExempt from creditors.A.C.A. § 11-9-110
Implements, Books, Tools of TradeUp to **\$750** total value.A.C.A. § 16-66-218(a)(4)
WagesEarned but unpaid wages for 60 days; at least \$25/week.A.C.A. §§ 16-66-208, 16-66-218(b)(6)
“Wild Card”Up to **\$500** of any personal property if married or head of family; else **\$200**.Ark. Const. 9-1, 9-2; A.C.A. §§ 16-66-218(b)(1), (2)

Disclaimer

This information is provided for general educational purposes only and may not reflect the most recent legal developments. Exemption laws can change or be interpreted differently by courts. Always consult a licensed Arkansas bankruptcy attorney for advice specific to your situation.