What post-judgment collection techniques are recognized in Arkansas?
The two basic post-judgment collection techniques are garnishment and execution. Arkansas allows wage garnishment, and the garnishment is continual until the judgment is paid in full or the judgment debtor/employee is no longer employed by the garnishee. Arkansas also allows writs of execution to be enforced by the county sheriff, which allows the debtors personal property to be sold to satisfy the judgment. Most sheriffs require a bond for twice the amount of the judgment as a precondition to enforcing a writ of execution.
Does Arkansas allow prejudgment attachment or garnishment?
No, it does not. However, summary judicial proceedings are available for replevin which provide for seizure of specific personal property in which the creditor has an interest, typically a security interest.
What can a Creditor do if a Garnishee Fails to Respond to a Garnishment?
The creditor must first give the garnishee the opportunity to respond at a court hearing set for that purpose. If the garnishee fails to attend that hearing, judgment can be taken against the garnishee for the full amount of the debt.
Does Arkansashave Usury Restrictions?
Its usury restrictions have long been one of the outstanding and peculiar features of Arkansas law. Currently, the maximum amount of interest that can be charged is 5% above the federal discount rate in effect on the day the contract is made. If the loan is a consumer loan, the absolute maximum rate is 17%; a consumer loan which requires interest in excess of 17% is void as to principal and interest. On a commercial loan, or consumer loan with interest less than 17%, the penalty for charging usurious is twice the usury interest paid and cancellation of future interest.
The reader is strongly cautioned that items can be considered "interest" which may not be considered "interest" in the common use of the term. Also, the usury prohibitions do not apply to just traditional lenders. ANY TRANSACTION INVOLVING THE EXTENSION OF CREDIT IN ARKANSAS SHOULD BE REVIEWED BY AN ARKANSAS ATTORNEY FAMILIAR WITH ARKANSAS’ USURY LAWS.
Does Arkansas have a Collection Practices Act?
Yes, and it is in most respects similar to the Federal Fair Debt Collection Practices Act. Two important distinctions are that attorneys are not subject to the Arkansas Act and Arkansas’ collection practices act extends to commercial debts.
Are Spouses Liable for Each Others Debts by Virtue of the Marital Relationship?
Arkansas follows the common law Doctrine of Necessaries, which provides that a husband is liable for the cost of necessary goods and services provided to his wife while they are married and living together. The wife is not, however, similarly liable for necessary goods and services rendered to his wife. This is clearly subject to constitutional challenge, but is currently the law.
Can an Out-of-State Collection Agency Collect Debts or Solicit Creditors in Arkansas without being Licensed?
No. Arkansas is a "closed borders" state per the Arkansas State Board of Collection Agencies.
