Arkansas Judgment Exemptions: What Assets Are Protected from Collection

Not everything a debtor owns can be seized to satisfy a judgment. Arkansas exemption laws — grounded in Article 9 of the state constitution and A.C.A. Title 16, Chapter 66 — protect certain property and income from creditors. Understanding these limits saves you from spending money on writs that produce nothing.

Homestead Exemption

The strongest protection in Arkansas law. Under Article 9, § 3 of the Arkansas Constitution and A.C.A. § 16-66-210, a debtor's primary residence is exempt from forced sale for ordinary debts:

• Urban property: Up to ¼ acre
• Rural property: Up to 80 acres

There is no dollar cap on the homestead exemption in Arkansas — it's measured by acreage, not value. A debtor living in a $400,000 home on a quarter-acre urban lot is fully protected.

You can still record a judgment lien against homestead property. The lien attaches on paper and the debtor can't sell without addressing it. But you cannot force a judicial sale of the homestead to collect an ordinary contract debt.

Wage Exemptions

Federal and state law protect most of a debtor's paycheck:

• At least 75% of disposable earnings are exempt from garnishment
• If the debtor's weekly disposable earnings are $217.50 or less (30 × federal minimum wage), wages are 100% exempt
• The maximum withholding is 25% of disposable earnings, or the amount exceeding $217.50, whichever is less

"Disposable earnings" means gross pay minus legally required deductions like taxes and FICA. For a worker earning $500/week in disposable pay, the maximum garnishment is $125 (25%).

Personal Property Exemption

Under Article 9, §§ 1–2 of the Arkansas Constitution and A.C.A. § 16-66-218:

• Married debtors or heads of household: Up to $500 in aggregate personal property (clothing, household goods, furnishings)
• Single individuals: Up to $200

These are low caps. In practice, most household goods fall within them, but vehicles, boats, or business equipment above these thresholds can be reached by a writ of execution.

Government Benefits

Protected under applicable federal or Arkansas exemptions:

• Social Security retirement and disability (SSDI)
• Supplemental Security Income (SSI)
• Veterans Affairs (VA) benefits
• Temporary Assistance for Needy Families (TANF)
• Unemployment compensation
• Workers' compensation
• Public employee pensions
• Qualifying retirement accounts (A.C.A. § 16-66-220)

When a bank receives a garnishment writ, federal rules (31 C.F.R. Part 212) require a 60-day lookback for qualifying electronically deposited federal benefits. Arkansas law also protects categories such as TANF, unemployment compensation, and workers' compensation.

How the Debtor Claims Exemptions

After receiving a writ of execution and notice, the debtor has 20 calendar days under A.C.A. § 16-66-104(h) to file an exemption petition. For garnishment, the debtor may file an exemption claim with the clerk after service under A.C.A. § 16-110-402(e); the debtor must notify the creditor within five days after filing, and the creditor has ten days to contest the claim. If the claimed assets fall within the statutory limits, the court can issue a writ of supersedeas and release the property.

What "Judgment Proof" Really Means

A debtor is informally called "judgment proof" when all of their income and assets fall within exemption categories — they earn below the garnishment threshold, own no non-exempt property, have only protected benefits in their bank account, and live in a homestead. There's no formal legal status; it just means enforcement tools produce nothing right now.

A judgment-proof debtor today may not be judgment-proof next year. Jobs change, assets are acquired, circumstances shift. Your judgment is enforceable for 10 years, subject to renewal or a new limitations period after qualifying enforcement process or payment. Post-judgment interest is set under A.C.A. § 16-65-114.

The Collecting a Small Claims Judgment in Arkansas guide includes an enforcement decision tree that factors exemptions into each tool's expected yield, so you spend money only on writs likely to produce results.

See more Arkansas guides →