How to Settle a Small Claims Case in Arkansas Before the Hearing

A Verbal Agreement Doesn't Close the Case

Reaching a deal with the plaintiff over the phone or in person feels like progress, but it changes nothing at the courthouse. The case stays active on the docket, your hearing date stays set, and the plaintiff can still request a default judgment if you don't file your answer and show up.

Only two things formally close an Arkansas small claims case: an Order of Dismissal With Prejudice signed by the plaintiff and the judge, or a Consent Judgment (Stipulated Settlement Order) signed by both parties and the judge.

Until one of those documents is file-stamped by the District Court Clerk, treat the case as fully live.

How to Approach Settlement

Contact the plaintiff directly — a phone call or written message works. Most small claims disputes involve people who know each other: a former landlord, a contractor, a neighbor, a buyer from a private sale. The conversation is usually about money, so come with a specific number.

Consider what the case is actually worth to both sides. The plaintiff spent time and money filing (filing fees range from $30 to $67.50 across Arkansas district courts, plus $50 for sheriff service). You're spending time preparing a defense. A settlement in the middle often costs less than the hearing for everyone.

Common settlement structures:

• Lump sum payment — you pay an agreed amount, the plaintiff files a dismissal
• Installment plan — you pay over time, documented in a Consent Judgment that the judge signs
• Mutual release — both sides walk away, each covering their own costs. Useful when both sides have claims against each other.

Put It in Writing Before the Court Date

If you reach a deal, write up the terms and have both parties sign. Then convert it into a court-recognized document:

If the plaintiff agrees to drop the case entirely: the plaintiff files an Order of Dismissal With Prejudice. "With prejudice" means they can't refile the same claim later.

If you're paying in installments: file a Consent Judgment with the court. This protects both sides — the plaintiff has an enforceable order if you default on payments, and you have clear terms rather than a vague verbal promise.

Get these filed before the hearing date. If the hearing arrives and nothing is on file, both of you must still show up.

Mediation as an Alternative

The Arkansas Community Dispute Resolution Centers (ACDRC) offer mediation with trained volunteer mediators, available in person or over video. Fees run on a sliding scale based on household income.

Mediation isn't mandatory in most Arkansas small claims jurisdictions, but some judges will refer cases to it. The mediator doesn't decide who wins; they help both parties reach an agreement. If mediation produces an agreement, formalize it through an Order of Dismissal or Consent Judgment filed with the court.

Contact ACDRC at (501) 379-1501 or through their website to schedule a session.

Don't Let Settlement Talks Stall Your Filing

Negotiating doesn't pause any deadline. Your answer deadline still runs (30 days, or 60 days if you are incarcerated). Your hearing date still stands. File your written answer on time even if you're in active settlement discussions. If a deal comes together, the answer is just paperwork that gets mooted by the dismissal. If the deal falls apart, you've protected yourself.

The Arkansas Small Claims Response Guide covers when settlement makes sense and how to formalize it without missing your procedural deadlines.

See more Arkansas guides →