Arkansas Bankruptcy

Bankruptcy is a legal court procedure where an individual or business requests that a judge discharge or reorganize their debts. In Arkansas, this procedure works under federal law, but some state-level rules (especially exemptions) significantly influence the case. In Arkansas, you may choose either the federal or the state exemption scheme (but you cannot mix the two).

How to File Bankruptcy in Arkansas

This is important for individuals and businesses to be familiar with the bankruptcy filing process in Arkansas. They must take a court-approved consumer credit counseling course within 180 days before filing their case. You must collect the required financial records, including recent tax returns, income statements, bank statements, asset and debt lists, vehicle titles, and real estate paperwork.

You must decide whether to file your case under Chapter 7, Chapter 13, or Chapter 11 and use state or federal exemptions. All petitions, schedules, Statement of Financial Affairs, and certificate of credit counseling must be submitted to the appropriate U.S. Bankruptcy Court (Eastern & Western Districts of Arkansas).

You must pay the filing fee or apply for a fee waiver or pay in installments. It is compulsory for you to attend the 341 meeting of creditors with the trustee and answer all questions under oath. After the filing process, you must fulfill the required debtor education and respond to any trustee or court requests until discharge or plan completion.

Bankruptcy Types in Arkansas: Chapter 7, Chapter 13, & Chapter 11

There are several types of chapters in Arkansas, and you must choose the right option:

Chapter 7 (liquidation)

Individuals with limited income and substantial unsecured debt are advised to pick this option. It allows the trustee to sell the debtor’s non-exempt assets to pay creditors. There are some exemptions to assets that may be sold off. Under Arkansas law, it includes your home (with acreage limits) and personal property ($500 cap on personal property for single non-household-head filers).

Chapter 13 (individual repayment plan)

If you have a regular income, you may choose this option to reorganize and repay your debts over three to five years. The amount you repay may be affected by the exemptions you select, which will determine the extent of your non-exempt equity. If you file for this chapter, you cannot file for another Chapter 13 bankruptcy for at least two years.

Chapter 11 (business reorganization)

This option is mainly used by businesses (and some individuals) that need to reorganize rather than liquidate. The process is complex, costly, requires plan approval, and may involve debtor-in-possession oversight.

Steps in Filing for Bankruptcy in Arkansas

You can take a look at the simplified checklist below to learn how to prepare for filing a bankruptcy case in Arkansas:

• Complete credit-counseling course
• Collect financial documents (such as tax returns, income, debts, assets)
• Choose the filing chapter and exemption scheme
• Prepare and file petition, schedules, and certificate of counseling
• Pay the filing fee or apply for waiver/installments
• Attend the 341 meeting of creditors
• Complete debtor-education course after filing
• Respond to trustee/court notices and await discharge or plan completion

Arkansas Bankruptcy Courts & Access to Records

You can find bankruptcy records in the Eastern and Western Districts of the U.S. Bankruptcy Court in Arkansas. This section outlines where you file in Arkansas, plus how to access the bankruptcy records and court services.

Court Locations

• The Eastern and Western Districts of Arkansas: The main headquarters of the court district is situated in the City of Little Rock. If you are making any payment by mail, remember to use the Little Rock office. The court has an additional divisional office in Fayetteville. The address for the main courthouse is:

Record Access

The United States Bankruptcy Court for the Eastern and Western Districts of Arkansas handles bankruptcy records in Arkansas. The Public Access to Court Electronic Records (PACER) system allows anyone to view court records. However, users must pay a $0.10 fee to search and view case details.

In Arkansas, individuals may use the Multi Court Voice Case Information System (McVCIS) to view limited case information. They must dial (866) 222-8029 from any touch-tone telephone. The McVCIS provides information such as the case type, debtor name, the last four digits of the debtor’s Social Security number, date filed, nature of case, assets information, debtor's attorney, trustee, judge, status of case, date of discharge, and dismissal.

Ensure you check with the local clerk for records, filings, and local rules (Fayetteville offices do not accept cash payment). The clerk’s office is open to the public Monday through Friday from 8:00 am to 5:00 pm. You may also access records in person at the courthouse public terminals. While you can view it free of charge, you must pay a fee of $0,50 per page for copies of records.