Bill > HB1676

This bill amends Arkansas law to modify the existing provisions for garnishment against the state or its subdivisions. Specifically, the bill removes the previous exemption that protected state income tax refunds from garnishment, which means that judgment creditors will now be able to collect unpaid debts by seizing a defendant's state income tax refund. The bill clarifies that any indebtedness, money, credits, or other assets belonging to a defendant that are in the possession of the state or its institutions can be subject to garnishment, while maintaining existing provisions about debt set-off for state programs. This change expands the tools available to creditors seeking to recover money owed to them by allowing them to intercept state tax refunds as a means of satisfying a legal judgment, which could provide additional recourse for creditors in debt collection efforts.

Justice

https://arkleg.state.ar.us/Bills/Detail?id=hb1676&ddBienniumSession=2025%2F2025R