Stop Wage Garnishment in Arkansas: Your Rights

Facing a debt lawsuit in Arkansas? You need to know what happens if you lose.

A debt lawsuit is serious business. Ignoring it won’t make it disappear. If you don’t defend yourself before your court date, your creditor will likely win a judgment against you.

Stop Arkansas Wage Garnishment Before It Starts

Don't let creditors take 25% of your paycheck. Respond to your debt lawsuit and negotiate a settlement today before the court issues a judgment against you.

Settle Your Debt

That judgment gives creditors the legal right to garnish your wages. They can take a significant chunk of your monthly pay until you repay the full amount. Depending on your earnings, you could lose hundreds or thousands of dollars each month.

You can stop wage garnishment before it starts. Taking action now protects your paycheck and your financial future.

Arkansas Wage Garnishment Laws Explained

Arkansas follows federal law for wage garnishment limits. Federal law 15 U.S.C. 1673 sets the maximum garnishment amount.

Creditors can garnish the lesser of these two amounts:

25% of your disposable earnings
The amount exceeding 30 times the federal minimum wage of $7.25 per hour

Arkansas offers one special exception for mechanics and laborers. Under Ark. Code § 16-66-208, these workers can claim a 60-day exemption if the garnishment is less than the state personal property exemption.

The personal property exemption is $200 for single individuals without dependents. Married individuals and those with dependents get $500.

Your employer must withhold and submit the nonexempt wages to the appropriate entity. Garnishment ends when you repay your debt in full or your employment terminates.

Real Example of Arkansas Wage Garnishment

Tiffany owes Arkansas Express $5,000 on an unpaid credit card. She stops making payments and ignores the debt lawsuit. The court awards Arkansas Express a judgment against her.

Tiffany earns $750 weekly. Arkansas Express can garnish $187.50 each week, which is 25% of her income. That’s less than the alternative calculation of $532.50 ($750 minus 30 times $7.25).

Since Tiffany owes $5,000, her wage garnishment will continue for 27 weeks. She’ll lose over $5,000 before it’s done.

Tiffany could have avoided this outcome entirely. Here’s how.

How to Stop Wage Garnishment in Arkansas

Wage garnishment doesn’t happen overnight. Creditors must sue you and win their case first. You have time to act before it reaches that point.

When you fall behind on payments, your debt doesn’t vanish. Your creditor will call and send letters. If you don’t respond, they’ll initiate legal action or sell your debt to a collector.

Meanwhile, your credit score tanks. You’ll struggle to obtain new loans or rent an apartment.

Respond to the Lawsuit

Once you receive notice of a debt lawsuit, you must take action. File an Answer to the Complaint explaining your situation. An Answer prevents a judge from automatically ruling against you.

Even if the lawsuit is valid, look for appropriate defenses. You might claim the lawsuit amount doesn’t match your records for the debt. Stick to the facts and avoid dishonest statements.

Our partner Solo can help you respond to the lawsuit and protect your rights.

Repay or Settle Your Debt

Next, determine if you can repay the debt before your court date. Repaying the full amount stops the lawsuit immediately. If there’s nothing left to collect, there’s no basis for a legal claim.

Can’t afford to pay in full? Aim for a settlement instead. In a settlement, you pay a percentage of what you owe in one lump sum. In exchange, the creditor drops the lawsuit and releases you from the remaining debt.

The more you offer, the more likely they’ll accept. A fair settlement is 60% of your debt’s value. Be prepared to negotiate higher if needed.

Settling your debt helps you avoid the hassle of wage garnishment. When creditors garnish wages, they contact your employer directly. Taking care of the matter before court protects you from judgment and future garnishment.

Take Action on Your Debt Today

Dealing with debt feels scary, especially without money to repay it. Avoiding your financial problems only makes things worse.

The alternative is a debt lawsuit and wage garnishment. That causes more financial headaches and impacts your ability to meet other obligations.

You have options right now. Respond to the lawsuit. Negotiate a settlement. Protect your paycheck before it’s too late.

Our partner Solo makes it easy to respond to debt collectors and settle your debt online. The process is straightforward and designed to help you resolve your debt quickly.

You can take control of your situation today. Don’t wait until garnishment starts.

Frequently Asked Questions

How much can creditors garnish from my wages in Arkansas?

Creditors can garnish up to 25% of your disposable earnings or the amount exceeding 30 times the federal minimum wage ($7.25/hour), whichever is less. For example, on $750 weekly earnings, creditors can take $187.50 per week.

Can I stop wage garnishment after it starts in Arkansas?

Wage garnishment continues until you repay the debt in full, your employment ends, or you modify the judgment. Your best option is to prevent garnishment by responding to the lawsuit and settling the debt before judgment.

What happens if I ignore a debt lawsuit in Arkansas?

If you ignore a debt lawsuit, the court will likely grant a default judgment against you. The creditor can then use that judgment to garnish your wages, taking up to 25% of your paycheck until the debt is fully repaid.

How do I settle my debt before wage garnishment starts?

You can negotiate a settlement by offering to pay a percentage of what you owe in a lump sum. A fair settlement is typically 60% of the debt amount. You must act before your court date to avoid judgment.

What is the personal property exemption in Arkansas?

Arkansas offers a $200 personal property exemption for single individuals without dependents and $500 for married individuals or those with dependents. Mechanics and laborers may claim a 60-day wage garnishment exemption if it's less than this amount.

Stop Wage Garnishment in Arkansas: Your Action Plan