Foreclosure & Alternatives Law
Can I Keep My Home If I File Bankruptcy in Arkansas?
There are two different homestead provisions that protect a homeowner’s equity in his or her primary residence in Arkansas. If the land is a rural then the homeowner may be protected by the rural homestead exemption. That provides an exemption of up to $2,500 for rural homes that are on 80 -160 acres of land. Urban homeowners are protected under the urban homestead exemption which provides an exemption of up to $2,500 for urban homes that are on ¼ acre – 1 acre of land.
Accordingly, an Arkansas homeowner may be able to keep his or her home if he or she is able to keep making the mortgage payments on the property, if he or she is not in default on the mortgage and does not have much more than $2,500 worth of equity in the property.