State Debt Laws
Arkansas Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Arkansas
Arkansas (AR) - At a Glance
| State Consumer Protection Law | Arkansas Deceptive Trade Practices Act |
| Source | Ark. Code ยง 4-88-101 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | Wages exempt for 60 days after deposit |
| Homestead Exemption | $2,500 (rural) / $500 (urban) |
Key Protections in Arkansas
- Wages exempt for 60 days after direct deposit
- Low homestead exemption - seek counsel if you own home
- FDCPA applies to third-party collectors
Wage Garnishment in Arkansas
After a court judgment, creditors in Arkansas can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Arkansas follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Arkansas
If a debt collector violates the FDCPA or Arkansas Deceptive Trade Practices Act:
- File with the Arkansas Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)