How To File Bankruptcy for Free in Arkansas (2025 Guide)

Filing for Chapter 7 bankruptcy in Arkansas can wipe out unsecured debts like credit cards and medical bills. You don’t need a lawyer to succeed. Many Arkansas residents have already used bankruptcy to get a fresh start and leave debt behind.

This guide walks you through each step of the process. You’ll learn how to gather documents, complete forms, and file with the court. We’ll also cover key requirements like financial courses, the means test, and property exemptions.

How To File Bankruptcy in Arkansas for Free

You’re not alone if you feel like you’re drowning in debt. Many people in Arkansas have used Chapter 7 bankruptcy to start fresh. You can file successfully without hiring a lawyer.

Whether you go the DIY route or work with a bankruptcy attorney, this guide supports you every step of the way. It covers everything from gathering documents to filing with the court.

Collect Your Arkansas Bankruptcy Documents

You’ll need to gather important documents to get started with your case. These help you fill out bankruptcy forms accurately. They also give the court a clear picture of your financial situation.

Here’s what you’ll need for the court or bankruptcy trustee:

• Tax returns from the last two years
• Paycheck stubs from the past 60 days
• A bank statement that covers your bankruptcy filing date

These extra documents aren’t required but can help you complete your forms:

• Bank statements from the past 12 months to help track your expenses
• Copies of bills from lenders and creditors
• Letters from collection agencies or debt collectors
• A copy of your recent credit report to help list your debts

You can get a free credit report every week at AnnualCreditReport.com.

Complete the Bankruptcy Forms

Now that you’ve gathered your financial documents, it’s time to fill out your bankruptcy forms. These forms are the same across the country. You can download them for free as fillable PDFs from the U.S. Courts website.

Some courts also require local forms. We’ll cover those below in the Arkansas Districts & Filing Requirements section.

If you work with a bankruptcy attorney, they’ll prepare and submit your forms for you.

Take the First Required Course (Credit Counseling Course)

Before you can file your bankruptcy case, you’ll need to take a credit counseling course. You must use an approved provider. The course helps explain your debt relief options. It gives you a better understanding of how bankruptcy works.

Here are some important things to know about this course:

• It usually takes 1–2 hours
• Most people take the course online, by phone, or in person
• It costs $10–$50, but many filers qualify for a fee waiver and can take the course for free
• You must complete the course within 180 days before you file

After you finish the course, you’ll get a certificate. You must include it with your bankruptcy forms when you file. Otherwise, the court may dismiss your case.

Get Your Filing Fee

There’s a $338 filing fee for Chapter 7 bankruptcy. But many people don’t have to pay it. If your income is below 150% of the federal poverty guideline, you can ask the court to waive the fee entirely.

If you don’t qualify for a waiver and can’t afford the full fee right away, you can apply to pay the fee in installments. This can be helpful if you need to file quickly to stop wage garnishment, foreclosure, or other collection efforts. As soon as you file, the automatic stay goes into effect. This powerful legal protection stops almost all debt collection.

Just keep in mind that if you miss an installment payment, the court may dismiss your case.

Print Your Bankruptcy Forms

After you’ve finished preparing your forms and figured out your filing fee, the next step is to print everything out. In Arkansas, everyone who files without a lawyer needs to submit paper copies of their bankruptcy forms.

Follow this guidance when printing your forms:

• Use standard 8.5″ x 11″ white paper
• Print in black ink
• Print single-sided only
• Don’t staple or hole-punch your pages
• Sign every signature page before you file

If you don’t have access to a printer, many public libraries and office supply stores can print your forms for a small fee. It’s also a good idea to print a second copy for your records if you can.

File Your Forms With the Arkansas Bankruptcy Court

Once you’ve printed and signed your bankruptcy forms, you’re ready to file them with the court. This officially starts your case.

In Arkansas, you can file your forms either in person or by mail. Online filing without a lawyer isn’t available right now.

Many people choose to file in person because the court clerk can do a quick check. That can help you avoid delays or extra trips later.

If you’re mailing your forms and payment, send them to the court in Little Rock, even if you live in another part of the state. If you’re filing in person, you’ll go to either Little Rock or Fayetteville. The location depends on which division you live in. We’ll explain that more in the Arkansas Districts & Filing Requirements section below.

Mail Documents to Your Trustee

After you file your forms, the court will assign a bankruptcy trustee to oversee your case. The trustee reviews your paperwork and ensures the process is fair for everyone involved.

Each trustee is different, but the U.S. Trustee’s office suggests giving the following to your trustee prior to your 341 meeting:

• Your two most recent federal tax returns
• A bank statement for any accounts you had open when you filed
• A copy of your photo ID (like a driver’s license or passport)
• Proof of your Social Security number (like a copy of your Social Security card, W-2, or a pay stub)
• Proof of your current income, like a recent pay stub

Try to send these at least 14 days before your 341 meeting. If you don’t have something on the list, you can include a short note explaining why it’s unavailable.

You’ll get your trustee’s name and contact information in an official court notice after you file. In most cases, your trustee will also send you a letter explaining who they are and what they need from you.

Take the Second Required Course (Financial Management/Debtor Education)

To get your debts officially discharged, you’ll need to take a second course after you file. This debtor education course teaches basic money management skills. It helps you rebuild after bankruptcy.

Here’s what you need to know about it:

• It typically takes 1–2 hours to complete
• You must take the course from a court-approved provider
• You need to complete the course within 60 days of your 341 meeting
• Once you finish, you’ll get a certificate of completion

Some providers will email your certificate and file it with the court for you. Sometimes you need to file it yourself. Either way, the court must receive your certificate. Otherwise, your case could be dismissed without your debts being wiped out.

Attend Your 341 Meeting

About a month after you file, you’ll attend a short meeting called the 341 meeting, or the meeting of creditors. It’s a standard part of the bankruptcy process. The trustee reviews your case and confirms the details in your paperwork.

Even though it’s called a meeting of creditors, most creditors don’t attend. Usually, it’s just you and the trustee.

These meetings are held virtually by Zoom in most cases. But you can ask for a phone or in-person meeting instead. You’ll get the time, date, and login details in an official notice from the court.

At the start of the meeting, the trustee will check your identity. Be ready to show:

• A government-issued photo ID (like a driver’s license or passport)
• Proof of your Social Security number (such as your Social Security card, a W-2, or a pay stub with your full SSN)

The trustee will then ask you a few questions about your finances. These are straightforward, and they’re based on the forms you already filed. Just answer honestly.

The whole meeting usually takes 10–15 minutes. Once it’s done, you’ll be one step closer to getting your debts discharged.

Deal With Your Car

In Arkansas, having a car is often essential for getting to work, school, or the store. So it’s understandable to feel nervous about what might happen to your vehicle if you file for bankruptcy. The good news is that many people are able to keep their car.

What happens to your car depends on three main things:

• How much your car is worth
• Whether you own it outright, have a loan, or lease it
• What exemptions you can claim ($1,200 under Arkansas law or $5,025 under federal law)

We’ll explain Arkansas’s property exemptions later. But here’s the big picture: If your car’s value (or equity) is less than the exemption amount, you can usually keep it.

If you’re still paying off a car loan, you have a few options:

• Reaffirm the loan: You keep the car and keep making regular payments. Some lenders require a reaffirmation agreement. Filers who are current on their car loan and want to keep the car often choose this option.
• Redeem the car: Redemption means you pay the car’s current value in one lump sum and wipe out the rest of the loan. This can help if your car is worth much less than what you owe. It’s less common than reaffirmation because you have to come up with a lump sum.
• Surrender the car: Surrendering means you give the car back and erase the loan. Some filers who are behind on payments or just don’t find the car worth keeping choose to use this option and start fresh.

If you own your car outright, you can keep it if the current market value is less than the exemption you’re claiming for it.

Arkansas Bankruptcy Means Test

Eligibility to file Chapter 7 bankruptcy in Arkansas is based on income. It’s measured by something called the means test, which has two steps.

First, you compare your income to the median income for a household of your size in Arkansas. If your income is below the limit, you likely qualify to file Chapter 7. Most people qualify at this step and don’t need to do the second part.

If your income is higher than the limit, there’s a second part to the test. It looks at your necessary living expenses, like rent, groceries, and healthcare. The test figures out how much disposable income you have. If there’s not much left, you may still be able to file Chapter 7. But it’s usually best to speak with a bankruptcy attorney to ensure you’re eligible.

Arkansas Districts & Filing Requirements

The Arkansas Bankruptcy Court is divided into two districts: The Eastern District and the Western District.

The filing process is the same in both districts. But the court that handles your case is determined by which county you live in.

You can use the table below or check the map to see which district you’re in.

If you’re filing without a lawyer (pro se), you can submit your paperwork in person or by mail.

The Arkansas Bankruptcy Court has two main filing offices:

Eastern District Filing Office
U.S. Bankruptcy Court
300 W. 2nd Street
Little Rock, AR 72201

Western District Filing Office
U.S. Bankruptcy Court
Divisional Office
35 E. Mountain Street, Room 316
Fayetteville, AR 72701

You can pay the filing fee in person using a money order or certified check made payable to Clerk, U.S. Bankruptcy Court. If you have exact cash, you can also pay in cash but only at the Little Rock office. Personal checks and credit cards aren’t accepted at any court location.

All mailed payments must go to the Little Rock office. Don’t mail cash.

Local Forms/Requirements for the Eastern and Western Districts of Arkansas

No matter which district you’re filing in, you’ll need to follow certain court requirements. One of the most important is preparing and submitting your creditor matrix.

Your creditor matrix is a list of everyone you owe money to, along with their mailing addresses. The court uses this list to send official notices and track claims in your case. The court has step-by-step instructions on how to correctly format your creditor matrix.

For full details on what’s required when you file, including payment options and which forms to submit, see the Chapter 7 Individual Filing Requirements on the court’s website.

Arkansas Bankruptcy Exemptions

Bankruptcy exemptions are laws that help you keep essential property when you file your case. Most people who file Chapter 7 never lose anything. Exemptions cover the things they need to live and work.

Arkansas lets you choose between the state and federal exemption systems. But you can only use one set, not a mix of both. If you’ve lived in Arkansas for at least two years, you can pick the option that protects more of your belongings.

Here’s a quick look at how the state and federal exemptions compare based on three of the most commonly used exemptions:

As you can see, federal exemptions offer stronger protection for most personal property, like cars. The federal wildcard exemption, which you can use for any property, is also more generous. It’s especially helpful if you don’t use the homestead exemption.

The Arkansas homestead exemption is unique. Instead of limiting you by dollar value, it protects a certain amount of land. You can protect up to 80 acres in rural areas or up to one-quarter acre in town, no matter how much it’s worth.

Arkansas Bankruptcy Lawyer Cost

Most Arkansas bankruptcy lawyers charge a flat fee between $595 and $1,500 for a Chapter 7 case. For those who choose to hire a lawyer, this is usually the biggest bankruptcy cost. Not everyone needs a lawyer. But some people find it worthwhile, especially if they own a home, have a complicated situation, or just feel more confident with legal support.

If you’re considering working with an attorney, you can speak with a bankruptcy attorney for free to explore your options.

Arkansas Legal Aid Organizations

You may be able to get help from free or low-cost legal aid organizations. These can be a good option if you’re not hiring a lawyer but still want some legal advice or support during your bankruptcy case.