the Arkansas homestead exemption states "but in no event to be less than one-quarter (1/4) of an acre of land without regard to value" so if your house sits on 1/4 to acre you can claim exemption to it regardless of value. So depending on your lot size it may be all exempt.
Ark. Const. art. 4. For married person or head of family: unlimited exemption on real or personal property used as residence to 1/4 acre in city, town, or village, or 80 acres elsewhere; if property is between 1/4 to 1 acre in city, town, or village, or 80-160 acres elsewhere, additional limit is $2,500; homestead may not exceed 1 acre in city, town, or village, or 160 acres elsewhere.
Then you need a lawyer.
The problem is the laws on collection do not care one iota what you can or cannot financially tolerate. Once state and federal exemptions are applies ANY income left is subject to garnishment of up to 25%. If that leaves you with major financial issues the court considers that your problem. It will not stop the garnishment.
You are supposed to file a MTC after you answer the suit and BEFORE discovery. In many states participating in the trial process (which discovery is) means you waive your right to arbitration. Did you send discovery to them?
It's so people don't transfer a lot of money/property into someone else's name so they can file Chapter 7 instead of Chapter 13.
Like me - I had a rough time a few years ago and got behind, but managed to save my house. I have a lot of equity, but I doubt my credit would support a refinance or equity loan. Other than selling the house, it's not an asset I can readily make liquid.
But, I also don't want to file Chapter 13 if I don't have to because it would be a major pain and I'd still have to pay off everything I owe due to that equity and my current salary.
Without laws like that, I could transfer all my properties with equity into someone else's name that I trust, file Chapter 7 immediately and get rid of all my unsecured debt, then transfer it back after the bankruptcy was finished, cheating the system.
It was significantly more. i would prefer not to file. But i do need to know if it truly would be a issue, i met with a highly rated most used bankruptcy attorneys in town, he said Arkansas 4 years, i had NO clue a bankruptcy assignee would go back looking for stuff like that. I mean really what i did with my property and mortgage in 2019 really is no ones business, crazy to me.
Check with another attorney
I read they go back two years not four,
also if you sold something you are able to exempt (protect up to a certain value) in your bankruptcy paperwork, that will also not be an issue.
In Arkansas you can elect federal exemptions which is $25,150 or state which some sites say it's unlimited and others say it's $2,500.
Hence check with another bankruptcy attorney. If you had less than $25K equity it's no brainer the house transfer is not an issue. If it's more check with another attorney.