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California Bankruptcy Exemptions

California Homestead
Insurance
Misc
Pensions
Personal Property
Public Benefits
Tools of Trade
Wages
Wild Card

Federal Bankruptcy Exemptions NOT Available in California

California has opted out of the Federal Exemptions (see below)

California Bankrupcty Exemptions Summary

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Homestead

$300,000 to $600,000 depending on county, and median sale price for a home in prior calendar year.

2021 California Homestead Caclulator (by County)

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Auto/Truck (aka Motor Vehicle)

Motor vehicles to $3,325, or $3,325 in auto insurance for loss or damages (husband and wife may not double)

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Jewelry, heirlooms & art to $8,725 total (husband and wife may not double)Health aids
Building materials to repair or improve home to $3,500 (husband and wife may not double)
Tools, implements, materials, instruments, uniforms, books, furnishings, & equipment to $8,725 total ($17,450 total if used by both spouses in same occupation); amount of exemption for commercial motor vehicle not to exceed $4,850 ($9,700 if used by debtor and spouse in same trade)

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Wild Card

None (use federal non-bankruptcy wage exemption)

Deposit Accounts to amount "necessary for the support of the judgment debtor, as well as the judgment debtor’s spouse and dependents"(CCP 704.225.) Using this exemption, a family living paycheck to paycheck could likely exempt an entire account balance; however, courts have yet to weigh in on the new law. A debtor must assert this exemption for it to apply.

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Wage Garnishment Law

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More California all_law_table_items...

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California Bankruptcy Exemptions

Federal Bankruptcy Code Exemptions Not Available in California

Although the federal bankruptcy code provides a list of exemptions, these exemptions are not available in California. California law requires you to use the exemptions found in state law -- not the U.S. bankruptcy code.

Federal "non-bankruptcy" exemptions are available

However you are entitled to use so-called federal "non-bankruptcy" exemptions in addition to your state law all_law_table_items. Non-bankruptcy exemptions are those found provisions of U.S. law that are not part of the bankruptcy code.

The four most significant non-bankruptcy exemptions are for

Wages (a general cap on what percentage of your wages can be garnished),
Social Security benefits,
Civil Service benefits,
Veterans Benefits

Other so called "non-bankruptcy" exemptions mostly deal with various benefits to government and military personnel, with a few odd laws regarding specially-regulated labor markets such as railroad workers, seamen, and longshoremen.

Special Notes regarding California exemptions:

Federal Bankruptcy Exemptions not available. California has two systems; you must select one or the other. Most law references are to the California Code of Civil Procedure. Many exemptions do not apply to claims for child support.

Joint filers cannot double California exemptions. Unlike most states, under California law, joint filers may not double exemptions with specific dollar limitations unless clearly stated otherwise in the exemption law. Code Civ. Pro. � 703.110 ("Where the property exempt under a particular exemption is limited to a specified maximum dollar amount, unless the exemption provision specifically provides otherwise, the two spouses together are entitled to one exemption limited to the specified maximum dollar amount, whether one or both of the spouses are judgment debtors under the judgment and whether the property sought to be applied to the satisfaction of the judgment is separate or community.")

Note: California's exemption amounts are no longer updated in the statutes themselves. California Code of Civil Procedure section 703.150 deputizes the California judicial council to update the exemption amounts every three years. (The last revision was in 2019; the next will be 2022.) As a result, the amounts listed in this chart (from the 2019 revisions) may not match the amounts that appear in the cited statutes. The current exemption amounts can be found on the California Judicial Council Website. Form EJ-156

Disclaimer

Citations and links to primary law and secondary sources are provided for those who wish to do further research. Every effort has been made to make this information up to date and accurate, but laws can and do change without notice. Persons relying on this information are responsible for confirming its timeliness and accuracy before relying on it. (This information was updated for April 2019.)

Also bear in mind that these brief summaries do not list every detail or exception to these exemptions. For example, there are often exceptions for collection of child support debt and/or taxes. These listings are designed to inform you of laws that exist for your benefit, so that you may exercise what rights you may have.

Finally, this website is intended to provide information only. It cannot answer whether your property does or does not qualify for a specific exemption.

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.) .

IF you are moving to another state, OR you moved to California within in the last two years, click here.

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

Avg home value in
Zip code 92501
Riverside, CA
Zillow.com.

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.)

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

Miscellaneous other exemptions for California

This category covers items like partnership property, alimony & support payments.

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

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

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.

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

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

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

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