^ Top - California Bankruptcy Exemptions
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California Homestead Exemption
Almost every state provides protection for equity in the family home, and many states have increased the amount of protection in recent years. Seven states offer unlimited protection. Most states are not as generous.
Federal Law Residency Requirement
Under the 2005 bankruptcy law, you must be have lived in the state for at least 40 months (three years and four months) before you can claim any homestead protection greater than $160,375. (If your state's exemption offers less than this amount, the law is irrelevant to you.) .
California System 1 Exemptions
- CA Exemptions
- May file homestead declaration to protect exemption amount from attachment of judicial liens and to protect proceeds of voluntary sale for 6 months.
Cal. Civ. Proc. Code § 704.920 (allows declaration of homestead)
Cal. Civ. Proc. Code § 704.950 (judgment liens cannot attach)
Cal. Civ. Proc. Code § 704.960 (exemption from voluntary sale proceeds)
- Real or personal property, including co-op, used as residence to $29,275; unused portion of homestead may be applied to any property
Cal. Civ. Proc. Code § 703.140 (b)(1)
- The amount of the homestead exemption is the greater of the following:
(1) The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed six hundred thousand dollars ($600,000*).
(2) Three hundred thousand dollars ($300,000*).
(* adjusted annually for inflation, beginning on January 1, 2022.
Cal. Civ. Proc. Code § 704.710 (definition - automatic homestead)
Cal. Civ. Proc. Code § 704.720
Cal. Civ. Proc. Code § 704.730 (homestead limits)
In re McFall, 112 B.R. 336 (9th Cir. B.A.P. 1990)
Cal. Civ. Proc. Code § 703.150 (c) (Adjustment of Exemption Amounts)
California System 2 Exemptions
- Real or personal property, including co-op, used as residence to $29,275; unused portion of homestead may be applied to any property
In re Talmadge, 832 F.2d 1120 (9th Cir 1987)
Home Valuation tool
Just add your street address to get an estimate of the value of your house, and all others in your neighborhood. (Note: Does not serve all areas, and valuations are imperfect estimates only.)
^ Top - California Bankruptcy Exemptions
Homestead |
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California Insurance exemptions
Virtually all states protect life insurance proceeds in some manner or another. Some restrict it to proceeds paid to a dependent. Many states also protect the cash-value or loan-value of insurance policies.
If a substantial amount of your assets are in life insurance, you may want to consult a professional to determine the extent to which those policies are exempt.
California System 1 Exemptions
- Disability benefits
Cal. Civ. Proc. Code § 703.140 (b)(10)(C)
- Fidelity bonds
Cal. Lab. Code § 404
- Fraternal Benefit Society benefits
Cal. Civ. Proc. Code § 704.170
- Fraternal unemployment benefits
Cal. Civ. Proc. Code § 704.120
- Homeowners' insurance proceeds for 6 months after received, to homestead exemption amount
Cal. Civ. Proc. Code § 704.720 (b)
- Life insurance proceeds needed for support of family
Cal. Civ. Proc. Code § 703.140 (b)(11)(C)
- Life insurance proceeds or avails if clause prohibits proceeds from being used to pay beneficiary's creditors
Cal. Ins. Code § 10132
Cal. Ins. Code § 10170
Cal. Ins. Code § 10171
- Matured life insurance benefits needed for support
Cal. Civ. Proc. Code § 704.100 (c)
- Unmatured life insurance contract accrued avails to $15,650
Cal. Civ. Proc. Code § 703.140 (b)(8)
- Unmatured life insurance policy loan value to $12,800 (husband & wife may double)
Cal. Civ. Proc. Code § 704.100 (b)
- Unmatured life insurance policy other than credit insurance
Cal. Civ. Proc. Code § 703.140 (b)(7)
California System 2 Exemptions
^ Top - California Bankruptcy Exemptions
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Miscellaneous other exemptions for California
California System 1 Exemptions
- Alimony, child support needed for support
Cal. Civ. Proc. Code § 703.140 (b)(10)(D)
- Business or professional licenses
Cal. Civ. Proc. Code § 695.060
- Inmates' trust funds to $1,750 (husband and wife may not double)
Cal. Civ. Proc. Code § 704.090
- Property of business partnership
Cal. Corp. Code § 16501
Cal. Corp. Code § 16502
Cal. Corp. Code § 16503
Cal. Corp. Code § 16504
California System 2 Exemptions
^ Top - California Bankruptcy Exemptions
Homestead |
Insurance | Misc |
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Wages |
Wild Card |
- AL
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California Pensions & Retirement Savings Exemptions
The new federal bankruptcy law now automatically exempts a virtually all tax-exempt pensions and retirement savings accounts from bankruptcy, even if you are using state law all_law_table_items. 11 U.S.C. § 522(b)(3)(C). (See Help Topic: Special Rules For Retirement Accounts.)
The law protects up to $1,283,025 of any pension or retirement fund that qualifies forspecial tax treatment under Internal Revenue Code sections 401,402, 403, 408, 408A, 414, 457, or 501(a).
California System 2 Exemptions
California System 1 Exemptions
- County employees
Cal. Gov't. Code § 31452
- County firefighters
Cal. Gov't. Code § 32210
- County peace officers
Cal. Bus. & Prof. Code § 31913
- ERISA-qualified benefits, IRAs & Roth IRAs needed for support
Cal. Civ. Proc. Code § 703.140 (b)(10)(E)
- Private retirement benefits, including IRAs & Keoghs
Cal. Civ. Proc. Code § 704.115
- Public employees
Cal. Gov't. Code § 21255
- Public retirement benefits
Cal. Civ. Proc. Code § 704.110
^ Top - California Bankruptcy Exemptions
Homestead |
Insurance | Misc |
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Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
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California Personal Property Exemptions
This category covers your car, your non-retirement bank accounts, and most of your other personal possessions, other than your house.
States vary widely on how generous they are in this area. Some exemptions may be for any combination of property up to an aggregate amount. Other exemptions apply only to specific items, such as jewelry.
Remember that an exemption will not protect your car from being repossessed by the holder of the car loan you used to purchase the vehicle if you pledged the vehicle as security for the loan. To keep the car, you will have to pursue other options such as 'redemption' or 'reaffirmation.' See the help topics and How to File for Chapter 7 Bankruptcy for more on this.
California System 1 Exemptions
- Animals, crops, appliances, furnishings, household goods, books, musical instruments & clothing to $725 per item
Cal. Civ. Proc. Code § 703.140 (b)(3)
- Appliances, furnishings, clothing, & food
Cal. Civ. Proc. Code § 704.020
- Bank deposits from Social Security Administration to $3,500 ($5,250 for husband and wife); unlimited if SS funds are not commingled with other funds Bank deposits of other public benefits to $1,750 ($2,600 for husband and wife)
Cal. Civ. Proc. Code § 704.080
- Building materials to repair or improve home to $3,500 (husband and wife may not double)
Cal. Civ. Proc. Code § 704.030
- Burial plot
Cal. Civ. Proc. Code § 704.200
- Burial plot to $29,275, in lieu of homestead
Cal. Civ. Proc. Code § 703.140 (b)(1)
- Deposit accounts to at least $1,788 (automatically protected)
Cal. Civ. Proc. Code § 704.220 (one deposit account protected to at least $1,788)
- Deposit accounts to the extent necessary for the support of the judgment debtor, as well as the judgment debtor’s spouse and dependents.
Cal. Civ. Proc. Code § 704.225 (deposit account to the extent neccsary for support)
- Funds held in escrow
Cal. Fin. Code § 17410
Cal. Civ. Proc. Code §
- Health aids
Cal. Civ. Proc. Code § 703.140 (b)(9)
- Health aids necessary to enable work; prosthetic and orthopedic appliances
Cal. Civ. Proc. Code § 704.050
Cal. Civ. Proc. Code § 703.140 (b)(9)(System 2)
Cal. Civ. Proc. Code § 703.150 (amounts adjusted each year)
- Homeowners' Association Assessments
(only exempt from association's creditors)
Cal. Civ. Code § 1366 (c)
- Jewelry to $1,750
Cal. Civ. Proc. Code § 703.140 (b)(4)
- Jewelry, heirlooms & art to $8,725 total (husband and wife may not double)
Cal. Civ. Proc. Code § 704.040
- Motor vehicles to $3,325, or $3,325 in auto insurance for loss or damages (husband and wife may not double)
Cal. Civ. Proc. Code § 704.010
- Motor Vehicles to $5,850
Cal. Civ. Proc. Code § 703.140 (b)(2)
- Personal injury & wrongful death causes of action
Cal. Civ. Proc. Code § 704.140 (a)
Cal. Civ. Proc. Code § 704.150 (a)
- Personal injury & wrongful death recoveries needed for support; if receiving installments, at least 75%
Cal. Civ. Proc. Code § 704.140 (b),(c),(d)
Cal. Civ. Proc. Code § 704.150 (b),(c)
- Personal injury recoveries to $29,275 ( not to include pain & suffering; pecuniary loss)
Cal. Civ. Proc. Code § 703.140 (b)(11)(D),(E)
- Wrongful death recoveries needed for support
Cal. Civ. Proc. Code § 703.140 (b)(11)(B)
California System 2 Exemptions
Auto Valuation Tools:
Both of these websites offer interactive tools to determine the current value of your used car.
^ Top - California Bankruptcy Exemptions
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Wild Card |
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California Public Benefits Exemptions
Most states exempt public benefits, consistent with the notion that such benefits are intended as a safety net for the recipient.
California System 1 Exemptions
- Aid to blind, aged, disabled; public assistance
Cal. Civ. Proc. Code § 704.170
- Crime victims' compensation
Cal. Civ. Proc. Code § 703.140 (b)(11)(A)
- Disability or health benefits
Cal. Civ. Proc. Code § 704.130
- FEMA Benefits
Cal. Civ. Proc. Code § 704.230
- Financial aid to students
Cal. Civ. Proc. Code § 704.190
- Public assistance
Cal. Civ. Proc. Code § 703.140 (b)(10)(A)
- Relocation benefits
Cal. Civ. Proc. Code § 704.180
- Social Security
Cal. Civ. Proc. Code § 703.140 (b)(10)(A)
- Unemployment benefits
Cal. Civ. Proc. Code § 704.120
- Unemployment compensation
Cal. Civ. Proc. Code § 703.140 (b)(10)(A)
- Union benefits due to labor dispute
Cal. Civ. Proc. Code § 704.120 (b)(5)
- Veterans' benefits
Cal. Civ. Proc. Code § 703.140 (b)(10)(B)
- Workers' compensation
Cal. Civ. Proc. Code § 704.160
California System 2 Exemptions
^ Top - California Bankruptcy Exemptions
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California Tools of Trade Exemptions
These are the things you use to make a living. An automobile or truck can be a tool of trade if you use it as such. Commuting to work doesn't count, but if driving is a necessary component of transacting your business, you can claim your vehicle is a tool of trade.
California System 1 Exemptions
- Commercial vehicle (Vehicle Code § 260) to $4,850 ($9,700 total if used by both spouses in same occupation)
Cal. Civ. Proc. Code § 704.060
- Implements, books, & tools of trade to $8,725
Cal. Civ. Proc. Code § 703.140 (b)(6)
- Tools, implements, materials, instruments, uniforms, books, furnishings, & equipment to $8,725 total ($17,450 total if used by both spouses in same occupation);
Commercial motor vehicle to $4,850 ($9,700 if used by debtor and spouse in same trade)
Cal. Civ. Proc. Code § 704.060
California System 2 Exemptions
^ Top - California Bankruptcy Exemptions
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California Wage Garnishment Laws
Most states have a wage garnishment law. In some states, wage garnishment laws can be used in bankruptcy as an exemption to protect income that you had coming due, but not yet received, as of the day you filed, for work you had already done -- so called "earned but unpaid wages".
In some states, the wage garnishment law protects not only wages owed to you, but also wages already in your possession and saved over time preferably holding it in a separate bank account. In other states wage garnishment laws do not protect wages once they are they are in your possession.
California System 1 Exemptions
- Minimum 75% of wages paid within 30 days prior to filing
Cal. Civ. Proc. Code § 704.070
- None
Cal. Civ. Proc. Code § 703.140
- Public employees' vacation credits; if receiving installments, at least 75%
Cal. Civ. Proc. Code § 704.113
California System 2 Exemptions
^ Top - California Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
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California Wild Card Exemption
Most, but not all, states allow a so-called "wild-card" exemption that can apply to any property. The wild card exemption can be of particular help if one or more of your other exemptions falls short of protecting your equity. You may split your wild card exemption amount over multiple items and stack it atop other exemptions as needed to protect exposed equity.
California System 1 Exemptions
- $1,550 of any property
Cal. Civ. Proc. Code § 703.140 (b)(5)
- Unused portion of homestead or burial exemption of any property
Cal. Civ. Proc. Code § 703.140 (b)(5)
Cal. Civ. Proc. Code § 703.140 (b)(1)
California System 2 Exemptions
^ Top - California Bankruptcy Exemptions
Links About California Bankruptcy Exemptions
- Exemptions | United States Bankruptcy Court, Northern Dist of California - Northern District of California's list of recent cases that are relevant to California exemptions and exemption planning.
- California Courts: Bankruptcy - money_selfhelp - California court system's guide to law and self-help bankruptcy and debt relief.
- State Bar of California: What Can I Do If I Can't Pay My Debts? What Can I Do If I Can't Pay My Debts? - State Bar's guide for consumers on how to handle debt problems.
- Inflation adjusted California exemption amounts - State of California exemption amounts adjusted for inflation.
- Message Board Bankruptcy/Debt - California - Discussion board on California bankruptcy. Good information