Arkansas follows at least the federal CCPA cap: a creditor can take the lesser of 25% of disposable earnings or the amount over $217.5/week (30 × the federal minimum wage). This federal cap is a floor, not a ceiling on your protection — many states protect MORE. Child support, alimony, federal student loans, and federal/state taxes follow different, higher limits.
These income sources are exempt from ordinary-creditor garnishment no matter your state. The recurring problem: the bank freezes the whole account anyway, and you must prove the funds are protected to get them released.
| Protected source | Federal law |
|---|---|
| Social Security (retirement & survivors) Exempt from ordinary-creditor garnishment, including after deposit into a bank account, as long as the funds are traceable. | 42 U.S.C. § 407(a) |
| Supplemental Security Income (SSI) SSI is fully protected. SSI in a bank account is exempt — but banks routinely freeze it anyway; you may have to file to get it released. | 42 U.S.C. § 1383(d)(1) |
| Social Security Disability (SSDI) Same protection as Social Security retirement. | 42 U.S.C. § 407(a) |
| Veterans (VA) benefits VA disability and pension benefits are exempt from creditor claims. | 38 U.S.C. § 5301(a) |
| Federal civil-service & military retirement Generally exempt from ordinary creditors (different rules apply for child/spousal support). | 5 U.S.C. § 8346; 10 U.S.C. § 1440 |
| Railroad Retirement benefits Exempt from creditor garnishment. | 45 U.S.C. § 231m |
| Federal student aid (some) Federal student-loan collection itself follows separate administrative-wage-garnishment rules (capped at 15%), with its own hearing rights. | 20 U.S.C. § 1095a |
When a bank gets a garnishment order, federal rule REQUIRES it to look back 2 months and automatically protect federal benefit payments (Social Security, SSI, SSDI, VA, federal retirement, railroad retirement) that were directly deposited — without you filing anything. The protected amount stays accessible.
The gap: The auto-protection only covers DIRECTLY-DEPOSITED federal benefits within the 2-month lookback. Benefits beyond 2 months of accumulation, benefits received by check then deposited, or funds commingled with non-exempt money are NOT auto-protected — for those you must file a claim of exemption to get the freeze lifted.
Exemptions are not automatic — you usually must file a claim of exemption in the issuing court before a short deadline. See the Arkansas claim-of-exemption form, deadline & filing steps, or how to stop a Arkansas wage garnishment.
A single state-specific packet you can fill in and file:
Self-help document templates. Not legal advice or representation.
Filing bankruptcy triggers an automatic stay the instant the petition is filed — it legally STOPS most wage garnishments and bank levies immediately, before any hearing. It can also let you recover certain amounts garnished in the 90 days before filing (preference). This is a powerful but consequential step with long-term credit and asset effects.
Whether bankruptcy is the right lever (and Chapter 7 vs 13) depends on your whole financial picture, your assets, and your exemptions. This is exactly the decision to take to a bankruptcy attorney — do NOT decide it from a web page.
A consumer-debt or bankruptcy attorney can file the right objection before your window closes — and can tell you whether the bankruptcy automatic stay should stop the garnishment now. Most offer a free consultation.
Find a debt / bankruptcy attorney →