Debt relief in Arkansas: collection rules, time limits and your options
Updated November 9, 2026
Arkansas at a glance (checked November 2026)
| Arkansas | |
|---|---|
| Time limit to sue on credit cards | 3 years as an open account, 5 years on a written contract |
| Wage garnishment for consumer debt | Up to 25% of disposable pay (the federal limit) |
| State debt collection law | Arkansas Fair Debt Collection Practices Act (Ark. Code § 17-24-501 and following) |
| Who licenses debt collectors | State Board of Collection Agencies |
| Where to complain | State Board of Collection Agencies, Arkansas Attorney General, and the CFPB |
Debt collection rules in Arkansas
Arkansas passed its own Fair Debt Collection Practices Act in 2009. It mirrors the federal law: collectors can't harass you, use threats or obscene language, lie about the debt or who they are, or contact you at inconvenient times. Because it's a state law, it gives Arkansas courts and regulators a second way to act against a collector that breaks the rules.
Any collection agency located in Arkansas or contacting Arkansas residents must be licensed by the State Board of Collection Agencies, part of the Department of Labor and Licensing. Licenses renew every year, agencies post a bond, and the board can suspend or revoke a license for breaking state or federal collection laws. If a collector won't tell you its license number, check with the board before paying.
How long creditors have to sue
Arkansas gives creditors 3 years on open accounts and oral agreements (Ark. Code § 16-56-105) and 5 years on written contracts (§ 16-56-111). Courts have gone both ways on credit cards: some treat them as open accounts with a 3-year limit, others as written contracts with 5 years.
A payment or a written acknowledgment of the debt can restart the clock in Arkansas, so check how old a debt is before you pay anything on it or sign a statement about it. After the time limit runs out, a collector can still ask for payment, but it can't sue you or threaten to.
What can be garnished in Arkansas
Once a creditor has a judgment, wage garnishment for consumer debts follows the federal limit: the lesser of 25% of your disposable earnings or the amount above 30 times the federal minimum wage. If you earn $217.50 a week or less after required deductions, nothing can be taken.
The Arkansas Constitution also protects personal property: up to $500 for a married person or head of family, and $200 for a single person, plus a homestead protection with limits on its size. You claim these exemptions by filing with the court after you get notice of the garnishment, so don't ignore the papers.
Ways out of debt in Arkansas
- Nonprofit credit counseling can bundle your cards into a debt management plan with lower interest. Look for an NFCC or FCAA member agency.
- Know your payoff date: our debt payoff calculator shows how long your cards take at today's payments and what payment clears them by a date you pick.
- Debt settlement companies can't take fees until they've settled a debt, under federal rules, and forgiven amounts can be taxable.
- Bankruptcy: Arkansas lets you choose the federal bankruptcy exemptions instead of the state ones, which often protects more for renters. Ask a bankruptcy attorney which list fits you.
Where to get help or complain
- Arkansas State Board of Collection Agencies licenses collectors and takes complaints about them.
- Arkansas Attorney General takes consumer protection complaints online.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Legal Aid of Arkansas gives free civil legal help, including with debt collection and garnishment; call 1-800-952-9243.
General information about Arkansas law, not legal advice. Checked November 2026.