What is the Arkansas homestead exemption in 2026?

Arkansas has an unlimited homestead exemption under the state constitution (Art. 9, Sections 3-4). There is no dollar cap on equity. The property must be your principal residence and cannot exceed 1/4 acre in a city/town or 80 acres in a rural area. You must have owned the property for at least 40 days before filing.

Does Arkansas allow federal bankruptcy exemptions?

Yes. Arkansas is one of the states that allows debtors to choose between state exemptions and the federal exemptions under 11 U.S.C. Section 522(d). You cannot mix and match -- you must choose one system entirely.

What is the Arkansas vehicle exemption?

Under Arkansas state exemptions, the motor vehicle exemption is $1,200 per person. If you choose federal exemptions instead, you can exempt up to $4,450 in vehicle equity, plus apply any unused portion of the federal wildcard.

Arkansas Bankruptcy Exemptions 2026

Complete guide to what property you can keep when filing bankruptcy in Arkansas

Unlimited

Homestead Exemption

$1,200

Vehicle Exemption (State)

Choice

State or Federal Exemptions

2 Districts

E.D. Ark. & W.D. Ark.

Arkansas Exemptions Chart

Asset Type	Exemption Amount	Statute
Homestead	Unlimited value; 1/4 acre (city) or 80 acres (rural)	Ark. Const. Art. 9, Sec. 3-4
Vehicle	$1,200	Ark. Code Ann. 16-66-218(b)(3)
Personal property	$500 per item (clothing, furniture); $200 wedding rings	Ark. Code Ann. 16-66-218
Wages	First $25/week earned plus 60 days wages	Ark. Code Ann. 16-66-208
Retirement accounts	Fully exempt (ERISA-qualified)	Ark. Code Ann. 16-66-218(b)(16)
IRA	Fully exempt (traditional + Roth)	Ark. Code Ann. 16-66-218(b)(16)
Life insurance	Cash value up to $500; group policy fully exempt	Ark. Code Ann. 16-66-209; 23-79-131
Public benefits	Fully exempt (unemployment, workers' comp, crime victims)	Various
Wildcard	None under state; $1,475 + $13,950 unused homestead under federal	11 U.S.C. 522(d)(5)

Arkansas Homestead Exemption Details

Arkansas has one of the most generous homestead exemptions in the country -- unlimited dollar value -- limited only by acreage:

Urban: 1/4 acre in a city or town
Rural: 80 acres outside city limits
Must be your principal residence
Must have owned for at least 40 days before filing
The 730-day federal domicile rule applies if you recently moved to Arkansas (11 U.S.C. 522(b)(3)(A))

Important: If you recently bought an expensive home to shelter assets before bankruptcy, the BAPCPA cap of $189,050 may apply under 11 U.S.C. 522(p). This targets pre-filing asset conversion.

State vs. Federal Exemptions in Arkansas

Arkansas allows debtors to choose between state and federal exemption systems. You cannot mix and match. Key considerations:

Choose state exemptions if: You have significant home equity (unlimited vs. $27,900 federal) or own rural acreage
Choose federal exemptions if: You rent or have little home equity -- the federal wildcard ($1,475 + up to $13,950 of unused homestead = $15,425) protects more personal property, and the vehicle exemption is $4,450 vs. $1,200 under state law

Important Notes for Arkansas Filers

Low vehicle exemption under state law: Only $1,200. If you have significant car equity, consider using federal exemptions ($4,450 + potential wildcard)
Marriage doubles exemptions: Married couples filing jointly can each claim the full exemption amounts
Two bankruptcy districts: Eastern District (Little Rock) and Western District (Fort Smith). Local rules may differ
Strong retirement protection: All ERISA-qualified plans and IRAs are fully exempt under both state and federal systems

Related Resources

Full Arkansas Bankruptcy Guide | Homestead Exemptions by State | Federal Exemptions (Section 522(d)) | Means Test Calculator | How to File Bankruptcy in Arkansas