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Arkansas Chapter 7 Means Test: Do You Qualify?

2026 median income limits for Arkansas by household size. Free calculator and filing guide.

Important: This page provides educational information about the Chapter 7 means test in Arkansas. Median income data is approximate, based on Census Bureau / DOJ figures effective April 2026. Figures are updated every April and November. Verify current amounts at the DOJ Means Testing page. This is not legal advice.

Arkansas Median Income Thresholds (2026)

The table below shows the approximate annual and monthly income thresholds for Arkansas by household size. If your annualized income (6-month average multiplied by 12) is at or below the figure for your household size, you pass Part 1 of the means test.

Household SizeAnnual MedianMonthly Equivalent
1 person$54,714$4,560
2 persons$71,128$5,927
3 persons$83,165$6,930
4 persons$96,844$8,070
5 persons$107,944$8,995
6 people$119,044$9,920

For each additional person above 4, add approximately $11,100 to the 4-person figure.

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Bankruptcy Filing in Arkansas

Federal Exemptions

Available

Arkansas is one of the states that allows bankruptcy filers to choose between state exemptions and federal bankruptcy exemptions (11 U.S.C. Section 522(d)). This gives filers more flexibility to protect their property. In many cases, the federal exemptions offer higher protection for personal property, while state exemptions may provide better homestead coverage. A careful comparison of both sets is essential before filing.

Bankruptcy Districts

2 districts

Arkansas has 2 federal bankruptcy districts. The district where you file depends on where you have lived for the greater part of the last 180 days. Each district may have different local rules and procedures, so check the local rules for your specific district before filing.

Arkansas Income and the Means Test

With a single-person median income of $54,714, Arkansas has one of the lower income thresholds nationally. Filers whose income is close to this amount should carefully calculate their 6-month average, as even small fluctuations can determine whether they pass Part 1. Timing your filing date strategically can make a difference.

Arkansas Bankruptcy Filing Reality (FJC Data)

Numbers from the Federal Judicial Center Integrated Database covering 959 consumer bankruptcy cases filed in Arkansas federal bankruptcy courts. These are actual case outcomes - not estimates - and show what really happens after filing.

ChapterCases FiledDischarge RateDismissal Rate
Chapter 746296.7%3.3%
Chapter 1349760.9%39.1%

Chapter 7 Share

48.2% of consumer filings

Chapter 13 Share

51.8% of consumer filings

Arkansas stands out with a 61% Chapter 13 discharge rate among resolved cases - above the national norm. Plans that run to completion are the majority here. Chapter 7 in Arkansas is a high-completion path: 97% of resolved filings receive discharge. For filers who pass the means test, this is a reliable outcome. Consumer filings in Arkansas split 48.2% Chapter 7 and 51.8% Chapter 13, close to the national mix.

Discharge and dismissal rates are computed on resolved cases only; pending cases are excluded. Source: FJC Integrated Database.

Tips for Filing in Arkansas

  1. Gather all income documentation for the 6 full calendar months before your planned filing date, including pay stubs, tax returns, 1099s, and bank statements.
  2. Compare both federal and Arkansas state exemptions to determine which set protects more of your property.
  3. Confirm which of Arkansas's 2 bankruptcy districts covers your county, and review that district's local rules.
  4. Complete the credit counseling requirement (from an approved provider) before filing.

Frequently Asked Questions

What is the income limit for Chapter 7 bankruptcy in Arkansas?

There is no single income limit. The means test compares your annualized income (6-month average times 12) to the median income for your household size. For a single person in Arkansas, the current median is approximately $54,714 per year. For a family of four, it is approximately $96,844. If your income is below the median for your household size, you pass Part 1 of the means test.

Can I use federal bankruptcy exemptions in Arkansas?

Yes. Arkansas allows bankruptcy filers to choose between state exemptions and federal bankruptcy exemptions under 11 U.S.C. Section 522(d). You must choose one complete set - you cannot mix and match individual exemptions from both. Compare both sets carefully with attention to the homestead, vehicle, and wildcard exemptions.

What happens if I fail the means test in Arkansas?

Failing Part 1 of the means test (having above-median income) does not disqualify you. You must then complete Part 2 (Form 122A-2), which deducts allowable expenses - including IRS standard amounts, actual secured debt payments, taxes, insurance, and child care. Many above-median filers pass Part 2. If you still do not pass, Chapter 13 is an alternative that allows debt repayment over 3 to 5 years with no income ceiling.

Explore More Bankruptcy Resources

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Means Test Calculator Exemptions by State

Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5