Arkansas Business Debts: How long does a Judgment survive in Arkansas?

Unfortunately, a common problem with many Arkansas businesses involves unpaid invoices.  Many companies address the problem in Small Claims Court, or pursue other judicial alternatives to obtain a judgment.  Once the lawsuit is filed and a judgment has been obtained, the question becomes:  how long does the judgment last? 

The basic answer is 10 years.  In Arkansas, a filed judgment will act as a lien on all real estate owned by the debtor in the county where the judgment is filed for 10 years.  Careful planning will allow you to “revive” the judgment for 10 additional years, but you must act within the period subscribed by law to take advantage of the extra time.  What this means for business owners in Arkansas:

• Don’t be afraid to pursue bad debts through the Arkansas Courts.  10 or 20 years is a long period of time for the debtor to be affected by your judgment, and payment opportunities may arise.
• Make sure the judgment is properly filed in every county in Arkansas where the debtor may have assets.
• If you obtain a judgment, you need to have a long memory, because 10 years after it is filed you need to revive the judgment.
• Contact our office for additional information and assistance for all questions concerning Arkansas business law.   Please see our Business Law Page for additional information concerning businesses in Arkansas.