Arkansas Debt Collection Laws: Time Limits, Garnishment and Your Rights
Arkansas debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Arkansas
- Time limit to sue on a written contract
- 5 years for actions to enforce written obligations, such as a signed loan or credit agreement. Ark. Code Ann. § 16-56-111
- Wage garnishment limit
- The first $25 per week of net wages is always exempt. A worker may also claim up to 60 days' wages as exempt by filing a sworn statement that the wages, together with other personal property, do not exceed the constitutional personal property exemption ($500 for a married person or head… Ark. Code Ann. § 16-66-208; Ark. Const. art. 9, §§ 1-2 (as listed in § 16-66-218(b)); Arkansas Attorney General, Guide to Small Claims Court
- Money protected in a bank account
- No separate bank account exemption. Money in an account can be claimed under the constitutional personal property exemption: $500 for a married person or head of a family, $200 for an unmarried person who is not head of a family (plus wearing apparel). Ark. Const. art. 9, §§ 1-2 (as listed in Ark. Code Ann. § 16-66-218(b)(1)-(2))
- Answering a debt lawsuit
- File a written answer with the court clerk by the deadline on the papers served, usually 30 days after service, and send a copy to the plaintiff. Arkansas Attorney General, Guide to Small Claims Court
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 5 years for actions to enforce written obligations, such as a signed loan or credit agreement. Official code published only via LexisNexis; text verified on a public mirror (FindLaw, current as of March 28, 2024). 2025 session amendments, if any, would not show on this mirror. Source: Ark. Code Ann. § 16-56-111 |
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| Time limit for credit cards and open accounts | 3 years for contracts not in writing, such as oral agreements and open accounts. Public mirror (FindLaw). Source: Ark. Code Ann. § 16-56-105 |
| Can a payment restart the clock? | Yes. For written obligations, a partial payment or a written acknowledgment of the debt restarts the limitations period. Public mirror (FindLaw). Source: Ark. Code Ann. § 16-56-111 |
| How long a judgment lasts | An action on a judgment must be brought within 10 years after the cause of action accrues. Public mirror (FindLaw). Source: Ark. Code Ann. § 16-56-114 |
If you are sued
| Answering a debt lawsuit | File a written answer with the court clerk by the deadline on the papers served, usually 30 days after service, and send a copy to the plaintiff. Collection agencies may not file cases in small claims court, so a debt buyer or collector's suit is usually on the regular District Court or Circuit Court docket. The Arkansas Rules of Civil Procedure set the exact answer deadlines (not separately reviewed). |
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Garnishment and what creditors can't take
| Wage garnishment limit | The first $25 per week of net wages is always exempt. A worker may also claim up to 60 days' wages as exempt by filing a sworn statement that the wages, together with other personal property, do not exceed the constitutional personal property exemption ($500 for a married person or head of family, $200 for others). The federal limit (no more than 25% of disposable earnings) also applies. Public mirror (FindLaw). The AG guide states the maximum that can be withheld is 25% of net disposable income: https://arkansasag.gov/divisions/public-protection/legal-resources/guide-to-small-claims-court/ |
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| Money protected in a bank account | No separate bank account exemption. Money in an account can be claimed under the constitutional personal property exemption: $500 for a married person or head of a family, $200 for an unmarried person who is not head of a family (plus wearing apparel). Exempt federal benefits keep their protection under federal law. Public mirror (FindLaw). Constitution text not separately read. |
| Homestead exemption | Rural homestead: up to 160 acres with improvements, up to $2,500 in value, but never less than 80 acres regardless of value. Urban homestead: up to 1 acre with improvements, up to $2,500 in value, but never less than one-quarter acre regardless of value. A widow's or surviving dependent children's homestead is also protected. Public mirror (FindLaw). In effect, the minimum acreage (80 acres rural, one-quarter acre urban) is protected regardless of value. |
| Vehicle exemption | In bankruptcy, a debtor may exempt up to $1,200 in one motor vehicle. Outside bankruptcy, a vehicle can be claimed only within the general personal property exemption ($500 married or head of family; $200 otherwise). Public mirror (FindLaw). The $1,200 vehicle exemption is in the section titled 'State bankruptcy proceedings.' |
| Claiming an exemption | To protect wages beyond the automatic $25 per week, the debtor files a sworn statement (schedule) of exemption with the court that issued the garnishment. The creditor has 5 days after the claim to ask for a hearing on its validity. If the claim is upheld, the debtor's wages cannot be garnished again for 60 days. Public mirror (FindLaw). Source: Ark. Code Ann. § 16-66-208(a) |
| Bankruptcy exemptions | Arkansas residents may choose either the Arkansas exemptions (constitution and state law, plus the extra bankruptcy-only exemptions in § 16-66-218) or the federal bankruptcy exemptions. Public mirror (FindLaw). Source: Ark. Code Ann. § 16-66-217 |
Debt collectors and interest
| State debt collection law | Yes. The Arkansas Fair Debt Collection Practices Act (Ark. Code Ann. § 17-24-501 et seq.) regulates 'debt collectors' collecting consumer debts owed to another. It also covers a creditor that collects its own debts under a different name suggesting a third party. A creditor's own employees collecting in the creditor's name are not covered. Public mirror (FindLaw). Source: Ark. Code Ann. § 17-24-502 |
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| Debt collector licensing | Yes. A license from the State Board of Collection Agencies is required to collect delinquent accounts for others, to collect one's own accounts under a fictitious or other name, to solicit claims for collection, or to buy and collect delinquent accounts (debt buyers). Public mirror (FindLaw). |
| Interest rate limits | Judgments on a contract bear interest at the contract rate or the Federal Reserve primary credit rate plus 2%, whichever is greater. Other judgments bear the Federal Reserve primary credit rate plus 2%, set on the date the judgment is entered. Judgment interest may not exceed the maximum allowed by Amendment 89 of the Arkansas Constitution. Public mirror (FindLaw). Source: Ark. Code Ann. § 16-65-114 |
Where to get help in Arkansas
- Arkansas Attorney General, Public Protection Department (collection agency licensing: Arkansas State Board of Collection Agencies)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Arkansas?
5 years for actions to enforce written obligations, such as a signed loan or credit agreement.
How long can a creditor sue on a credit card debt in Arkansas?
3 years for contracts not in writing, such as oral agreements and open accounts.
Does making a payment restart the statute of limitations in Arkansas?
Yes. For written obligations, a partial payment or a written acknowledgment of the debt restarts the limitations period.
How long does a court judgment last in Arkansas?
An action on a judgment must be brought within 10 years after the cause of action accrues.
How much of my wages can be garnished in Arkansas?
The first $25 per week of net wages is always exempt. A worker may also claim up to 60 days' wages as exempt by filing a sworn statement that the wages, together with other personal property, do not exceed the constitutional personal property exemption ($500 for a married person or head of family, $200 for others). The federal limit (no more than 25% of disposable earnings) also applies.
How much money in a bank account is protected from creditors in Arkansas?
No separate bank account exemption. Money in an account can be claimed under the constitutional personal property exemption: $500 for a married person or head of a family, $200 for an unmarried person who is not head of a family (plus wearing apparel). Exempt federal benefits keep their protection under federal law.
What is the homestead exemption in Arkansas?
Rural homestead: up to 160 acres with improvements, up to $2,500 in value, but never less than 80 acres regardless of value. Urban homestead: up to 1 acre with improvements, up to $2,500 in value, but never less than one-quarter acre regardless of value. A widow's or surviving dependent children's homestead is also protected.
Can a creditor take my car in Arkansas?
In bankruptcy, a debtor may exempt up to $1,200 in one motor vehicle. Outside bankruptcy, a vehicle can be claimed only within the general personal property exemption ($500 married or head of family; $200 otherwise).
What debt collection practices are illegal in Arkansas?
Yes. The Arkansas Fair Debt Collection Practices Act (Ark. Code Ann. § 17-24-501 et seq.) regulates 'debt collectors' collecting consumer debts owed to another. It also covers a creditor that collects its own debts under a different name suggesting a third party. A creditor's own employees collecting in the creditor's name are not covered.
Do debt collectors need a license in Arkansas?
Yes. A license from the State Board of Collection Agencies is required to collect delinquent accounts for others, to collect one's own accounts under a fictitious or other name, to solicit claims for collection, or to buy and collect delinquent accounts (debt buyers).
What is the maximum legal interest rate in Arkansas?
Judgments on a contract bear interest at the contract rate or the Federal Reserve primary credit rate plus 2%, whichever is greater. Other judgments bear the Federal Reserve primary credit rate plus 2%, set on the date the judgment is entered. Judgment interest may not exceed the maximum allowed by Amendment 89 of the Arkansas Constitution.
How do I respond to a debt collection lawsuit in Arkansas?
File a written answer with the court clerk by the deadline on the papers served, usually 30 days after service, and send a copy to the plaintiff. Collection agencies may not file cases in small claims court, so a debt buyer or collector's suit is usually on the regular District Court or Circuit Court docket.
How do I stop a garnishment or claim an exemption in Arkansas?
To protect wages beyond the automatic $25 per week, the debtor files a sworn statement (schedule) of exemption with the court that issued the garnishment. The creditor has 5 days after the claim to ask for a hearing on its validity. If the claim is upheld, the debtor's wages cannot be garnished again for 60 days.
Which bankruptcy exemptions can I use in Arkansas?
Arkansas residents may choose either the Arkansas exemptions (constitution and state law, plus the extra bankruptcy-only exemptions in § 16-66-218) or the federal bankruptcy exemptions.
Debt & Collections in other states
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.