How Do You File for Chapter 11 Bankruptcy in Arkansas?

Filing for Chapter 11 bankruptcy in Arkansas is somewhat straightforward. This is known as a “reorganization bankruptcy,” which aims to keep the business solvent and profitable through various potential means.

When a business files for Chapter 11 bankruptcy protection, it means that the company is in danger of going out of business due to a significant amount of accrued debt, and it needs state and federal assistance to keep it from doing so. The protection occurs through a series of steps with a Chapter 11 bankruptcy filing.

What to Know About Chapter 11 Bankruptcy in Arkansas

First off, Chapter 11 is a lengthier, more complex, and costlier proceeding than Chapter 7 due in part to additional filing, administrative, and legal fees.

Businesses looking to file Chapter 11 will formally submit to one of two bankruptcy courts in Arkansas, then begin an evaluation of assets to see if they pass the means test to move forward with the filing. Collection actions will stop while the business is evaluated.

The filer will continue to run the business as a “debtor-in-possession” and works with the court (and potentially other appointed experts) to reorganize the company into a viable operation.

How Arkansas Companies with Significant Property Navigate Chapter 11

If the company is large enough, it’ll need to consider how it will reorganize and cut down the number of properties it has. For example, retailers now get a maximum of 210 days to figure out which store leases to keep and which ones to let go of. With this expedited timespan, many companies choose liquidation versus reorganization. There is no one-size-fits-all option for businesses facing bankruptcy.


Chapter 11 all boils down to the company’s ability to continue operating. Can it be competitive? If so, can it be profitable? Can it be a reliable employer? These are all questions that need to be taken into consideration and ones that a qualified Little Rock bankruptcy law firm can help answer. Natural State Law is a trusted source for Arkansas businesses working through bankruptcy and is ready to help yours navigate the process. Call us today at (501) 916-2878 to learn more and schedule a free consultation.