Arkansas Debt Relief
Arkansas Credit Card Debt law allows a three-year Statute of Limitations (SOL) for creditors to file suit against debtors for unpaid open-ended accounts. The SOL begins to run from the date of the first missed payment on the account. Partial payments on such accounts will restart the SOL from the date of the partial payment. Arkansas provides 20 days time for filing an answer to a summons. Important court documents such as these should always be sent via certified mail
Judgment Enforcement
In Arkansas, the creditor may lien the debtor’s real property for the ten-year enforcement period allowed under judgments. This time may be extended by court order. Judgments are subject to interest at a rate of 10 percent annually. In addition, any nonexempt real and personal property is subject to seizure by the creditor. The debtor may claim a homestead exemption up to $2,500 and personal property exemption valued at $200 for an individual and $500 for families. Clothing is exempted from seizure.
Credit card companies don’t like to seize debtor’s property if they can avoid doing so. Such actions are costly and bad for public relations. Instead, most creditors will garnish wages and accounts. Arkansas follows federal rules in exempting 25% of the debtor’s wages from garnishment, with exemptions on certain types of income, like social security benefits.
Arkansas residents take note that some credit contracts might contain a “confession of judgment” clause. Such contract language binds the debtor to accepting responsibility for the debt, leaving no defense against the lawsuit.
Debt Settlement
Rather than partaking in a lengthy and painful suit, many consumers prefer to arrange for Debt Settlement. During the Debt Settlement process, no interest is charged on the amount owed. This solution to debt problems is preferable to bankruptcy in that it stays on the debtors credit record for a shorter period and because it carries less stigma than filing for bankruptcy.