How To Keep Your Property During Bankruptcy

Many people believe filing for bankruptcy will cause them to lose their cars, their homes and all their personal property. This is a myth.

Federal and state bankruptcy laws “exempt” certain properties, safeguarding them during the bankruptcy process. As a result, many people are able to keep most, if not all, of their assets.

Located in Rogers, the attorneys at Hatfield Harris, PLLC, have been helping people protect their properties and eliminate their debts for more than 20 years.

Together, we will get you the clean slate you deserve, while protecting the properties you value.

Protect Your Property, Eliminate Your Debts

State and federal bankruptcy property exemptions protect most properties during bankruptcy. In general, you will be able to keep (up to a certain value) the following:

• Your home
• Your car
• Tools of the trade
• Household goods and jewelry
• Life insurance
• Disability benefits

Filing for bankruptcy will also stop wage garnishments, prevent repossession and can stall the foreclosure process.

At Hatfield Harris, PLLC, we use bankruptcy to help people eliminate their debts and regain control of their finances while safeguarding their assets.

How to Keep Your Rogers, Arkansas, Property During Bankruptcy

While some states allow you to use federal bankruptcy exemptions, you can use state exemptions in a Chapter 7 filing in Rogers, Arkansas. State exemptions allow you to protect the resources that matter the most for your long-term financial stability. You must disclose your assets by creating a comprehensive inventory of your possessions and their estimated value when seeking to exempt eligible property.

In Arkansas, you can protect the equity accrued in your primary residence, as well as the land on which it sits. This means it may be possible to exempt up to 80 acres of rural land or 1/4 acre of urban land, as well as the parcel’s dwelling unit.

Additionally, your necessary clothing and tools of your trade are exempt from liquidation in an Arkansas Chapter 7 filing. State exemptions also protect up to $1,200 in vehicle equity, up to $200 in personal property ($500 if filing with a spouse), tax-deferred retirement accounts and up to 60 days of wages.

If you have more assets than you can protect with exemptions, then a Rogers, Arkansas, Chapter 13 filing may be a better option. You do not need to liquidate assets to repay creditors in a Chapter 13 filing, but you must commit to a three-to-five-year repayment plan.

Retirement Accounts Exempt During Bankruptcy

Many people cash in their retirement accounts in an attempt to pay off their debts. This is a mistake. Under Chapter 13, you can eliminate your debts while keeping your retirement savings.

Chapter 13 bankruptcy does not require asset liquidation, making it an ideal solution for those who may have saved for retirement using non-specialized accounts or investments.

In a Chapter 7 filing, you may exempt retirement savings in many cases, but any funds you withdraw from a retirement account before filing for bankruptcy lose exemption eligibility. It may also be possible to protect most of your tax-deferred retirement savings in a Chapter 7.

Most retirement savings remain protected in an Arkansas Chapter 7 case. Accounts covered by the Employee Retirement Income Security Act of 1974 are generally exempt from liquidation, which helps preserve long‑term financial security. Common protected plans include 401(k)s, 403(b)s, and employer‑sponsored pensions, all designed to safeguard future income.

Traditional and Roth IRAs have limited protection, with filers being able to preserve up to $1,711,975 per person based on 2025-2028 guidelines. However, inherited IRAs may not be exempt during a Rogers, Arkansas, Chapter 7 bankruptcy filing.

 

Don’t wait until it is too late. Consult with an Arkansas bankruptcy lawyer before liquidating your retirement accounts.There is a way to keep your property during the bankruptcy process. At Hatfield Harris, PLLC, we can help. Contact our law office today at 479-250-1962. We offer free consultations and flat fees. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.