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What are the
exemptions allowed in California?
The California bankruptcy exemptions chart,
see below, details the property you can
exempt or protect from creditors. You may
exempt any property that falls into one of
the exemptions categories below, up to the
dollar amount listed. You will be able to
kept this exempted property after you file
bankruptcy.
To keep non-exempt property, a debtor must
generally pay the trustee the value of the
non-exempt property.
California has two sets of exemptions. You
must choose System 1
or System 2 based on
your circumstances. System 1 is generally
indicated if you own real property. You also
may use certain
Federal Exemptions in
addition to your California exemptions.
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CALIFORNIA EXEMPTION
SYSTEM 1 |
|
ASSET |
EXEMPTION DESCRIPTION |
LAW SECTION |
|
Homestead |
Real or personal
property you occupy including mobile home,
boat, stock cooperative, community
apartment, planned development or
condominium unit is exempt to the extent of:
$50,000 if single and not disabled;
$75,000 for families if no other member
has a homestead (if only one spouse files,
may exempt one-half of amount if home held
as community property and all of amount if
home held as tenants in common);
$150,000 if 65 or older, physically or
mentally disabled, or if 55 or older, single
and earn under $15,000 or married and earn
under $20,000 and creditors seek to force
the sale of your home.
Sale proceeds from an exempt homestead
are exempt for 6 months after received.
A husband and wife may not double their
homestead exemption. |
CCCP §704.710
CCCP §704.720
CCCP §704.730In re McFall, 112
B.R. 336 (9th
Cir. B.A.P. 1990)
|
| Motor Vehicles |
Motor vehicles to
$2,300, or $2,300 in auto insurance if
vehicle(s), lost, damaged or destroyed.
Sale proceeds from an exempt motor
vehicle are exempt for 90 days after
received.
A husband and wife may not double
their motor vehicle exemption. |
CCCP §704.010 |
| Household
Furnishings |
All ordinary and
reasonable household furnishings,
appliances, food, wearing apparel, and other
personal effects. |
CCCP §704.020 |
| Building
Materials |
Home improvement
and building materials to $2,425 if they are
about to be applied to the repair or
improvement of your residence.
A husband and wife may not double
their building materials exemption. |
CCCP §704.030 |
| Jewelry |
Jewelry,
heirlooms and works of art to $6,075 total.
A husband and wife may not double
their jewelry exemption. |
CCCP §704.040 |
| Health Aids |
Health aids
including prosthetic and orthopedic
appliances. |
CCCP §704.050 |
| Tools of the
Trade |
Tools,
implements, instruments, materials,
uniforms, furnishings, books, equipment, one
commercial motor vehicle, one vessel, and
other personal property that are reasonably
necessary and actually used in the exercise
of the trade, business, or profession by
which you earn a livelihood to $6,075.
A husband and wife may double
their tools of the trade exemption if they
jointly operate the trade, business, or
profession by which they both earn a
livelihood.
Commercial motor vehicles are limited to
$4,850 ($9,700 for husband and wife
operating the same business).
You cannot claim a motor vehicle under
tools of trade exemption if you claimed the
same motor vehicle or a motor vehicle
suitable for business purposes under motor
vehicle exemption. |
CCCP §704.060 |
| Paid Earnings |
100% of earnings
paid within 30 days are exempt if you are
subject to an earnings assignment order for
support.
75% of earnings paid within 30 days are
exempt if you are not subject to an earnings
assignment order for support. |
CCCP §704.070 |
| Bank Accounts |
Public benefit
payments directly deposited into a bank
account to $1,225 ($1,825 if joint benefit
payees).
Social security benefit payments directly
deposited into a bank account to $2,425
($3,650 if joint benefit payees).
In some cases all public benefit and
social security benefit payments directly
deposited into a bank account are exempt.
Paid earnings (see Paid Earnings).
Paid retirement benefits (see
Retirement Benefits).
Paid life insurance death benefit (see
Life Insurance). |
CCCP §704.080
CCCP §704.080(c)
42 U.S.C. §407
CCCP §704.070
CCCP §704.110(d)
CCCP §704.115(d)
CCCP §704.100(c)
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| Prisoner Accounts |
Inmates’ trust
fund to $1,225 if inmate is not subject to a
restitution fine or similar order. If inmate
is subject to a restitution fine or similar
order to $300.
A husband and wife are each entitled to a
separate exemption or may double
their inmate trust fund exemption. |
CCP §704.090 |
| Life Insurance |
Unmatured life
insurance, endowment, and annuity policies
(unpaid death benefits) are 100% exempt.
Unmatured life insurance, endowment, and
annuity policies (loan value) are exempt to
the extent of $9,700.
A husband and wife are each entitled to a
separate exemption or may double
their unmatured life insurance loan value
exemption.
Benefits from matured life insurance,
endowment, and annuity policies (paid death
benefits) are exempt to the extent
reasonably necessary for the support of you,
your spouse, and your dependants.
Life insurance proceeds (paid death
benefits) if clause in life insurance policy
prohibits proceeds from being used to pay
beneficiary’s creditors. |
CCCP §704.100
Ins. Code §10132
Ins. Code §10170 |
| Retirement
Benefits |
Public retirement
benefits are exempt.
Private and union retirement benefits,
profit-sharing plans designed and used for
retirement purposes, self-employed
retirement plans, IRAs, and Keoghs are
exempt to the extent necessary to provide
support for you, your spouse, and your
dependants when you retire. |
CCCP §704.110
CCCP §704.115 |
| Pensions Plans |
Public employees
pension plans are exempt.
County employees pension plans are
exempt.
County peace officers pension plans are
exempt.
County firefighters pension plans are
exempt.
|
Gov. Code §21255
Gov. Code §31452
Gov. Code §31913
Gov. Code §32210 |
| Vacation Credits |
All accumulated
(unpaid) vacation credits of state and
public employees are exempt. All paid
vacation credits are treated as earnings. (See
Paid Earnings). |
CCCP §704.113 |
| Unemployment |
Unemployment
benefits paid by the state or a fraternal
organization to its members is exempt.
Benefits paid by a labor union due to a
labor dispute are exempt. |
CCCP §704.120 |
| Health &
Disability Insurance |
Benefits from a
disability or health insurance policy or
program are exempt. |
CCCP §704.130 |
| Personal Injury
Actions |
A cause of action
(claim before recovery) for personal injury
is exempt.
An award of damages or a settlement
(lump-sum) arising out of a personal injury
is exempt to the extent necessary for the
support of you, your spouse, and your
dependants.
Where an award of damages or a settlement
arising out of a personal injury is payable
in installments (structured settlement) it is
treated as earnings. (See Paid
Earnings). |
CCCP §704.140(a)
CCCP §704.140(b)
CCCP §704.140(d) |
| Wrongful Death
Actions |
A cause of action
(claim before recovery) for wrongful death
is exempt. An award of damages or a settlement
(lump-sum) arising out of a wrongful death
of your spouse, or someone for whom you were
a dependant, is exempt to the extent
necessary for the support of you, your
spouse, and your dependants.
Where an award of damages or a settlement
arising out of a wrongful death of your
spouse, or someone for whom you were a
dependant, is payable in installments
(structured settlement) it is treated as
earnings. (See Paid Earnings). |
CCCP §704.150(a)
CCCP §704.150(b)
CCCP §704.150(c)
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| Workers’
Compensation |
Workers’
compensation claims, awards, and payments
are exempt. |
CCCP §704.160(a) |
| Welfare &
Fraternal Benefits |
Welfare, aid to
blind/aged/disabled, AFDC, food stamps, and
fraternal benefit society payments are
exempt. |
CCCP §704.170 |
| Relocation
Benefits |
Relocation
benefits for displacement from your home are
exempt. |
CCCP §704.180 |
| Student Financial
Aid |
Student financial
aid is exempt. |
CCCP §704.190 |
| Burial Plots |
Burial, cemetery,
and family plots for you and your spouse are
exempt. |
CCCP §704.200 |
| Other Property |
Any other
property that is not subject to enforcement
of a money judgment is exempt. (e.g.
property that is not assignable or
transferable).
Licenses issued by a public entity to
engage in a business, profession, or
activity are not subject to enforcement of a
money judgment.
Property of a business partnership is not
subject to enforcement of a money judgment
against a partner.
Fidelity bonds are not subject to
enforcement of a money judgment held by a
general creditor. |
CCCP §704.210
CCCP §695.060
Corp. Code §16501
Labor Code §404
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CALIFORNIA EXEMPTION
SYSTEM 2
PLEASE NOTE: Married
couples may not double any exemptions. CCCP
§703.110; In re Talmadge, 822 F.2d
1120 (9th Cir. 1987); In re
Baldwin, 70 B.R. 612 (9th
Cir. B.A.P. 1987). |
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ASSET |
EXEMPTION DESCRIPTION |
LAW SECTION |
| Homestead |
Real or personal
property you live in including mobile home,
boat, stock cooperative, community
apartment, planned development or
condominium unit or in a burial plot
is exempt to $18,675.
Any unused portion of homestead exemption
may be applied to any other property. |
CCCP
§703.140(b)(1) |
| Motor Vehicles |
Motor vehicles
are exempt to a total value of $2,975. |
CCCP
§703.140(b)(2) |
| Household
Furnishings |
Household
furnishings, household goods, wearing
apparel, appliances, books, animals, crops,
or musical instruments are exempt to $475 per
item. |
CCCP
§703.140(b)(3)
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| Jewelry |
Jewelry is exempt
to a total value of $1,225. |
CCCP
§703.140(b)(4) |
| Wild Card
Exemption |
Any other
property to a total value of $1,000 plus any
unused portion of the Homestead exemption. |
CCCP
§703.140(b)(5) |
| Tools of the
Trade |
Tools,
implements, or professional books used in
your trade to a total value of $1,875. |
CCCP
§703.140(b)(6) |
| Life Insurance |
Unmatured life
insurance (unpaid death benefit), other than
credit life insurance, is 100% exempt.
Accrued dividends, interest, or loan
value of unmatured life insurance insuring
your life or the life of your dependant and
owned by you is exempt to the total value of
$9,975.
Benefits from matured life insurance
(death benefit) is exempt to the extent
reasonably necessary for the support of you
and your dependants. |
CCCP
§703.140(b)(7)
CCCP
§703.140(b)(8)
CCCP
§703.140(b)(11)(C) |
| Health Aids |
Professionally
prescribed health aids for you and your
dependants are 100% exempt. |
CCCP
§703.140(b)(9) |
| Public Benefits |
Social Security,
Unemployment Compensation, and Public
Assistance Benefits are 100% exempt.
Veteran’s Benefits are 100% exempt.
Disability, illness, and Unemployment
Benefits are 100% exempt.
Alimony, support, or separate maintenance
is exempt to the extent reasonably necessary
for the support of you and your dependants.
Awards under a crime victim’s
reparation law are 100% exempt. |
CCCP
§703.140(b)(10)(A)
CCCP
§703.140(b)(10)(B)
CCCP
§703.140(b)(10)(C)
CCCP
§703.140(b)(10)(D)
CCCP
§703.140(b)(11)(A) |
| Pension Plans |
Payments under
stock bonus, pension, profit-sharing,
annuity, or similar plans which are payable
on account of illness, disability, death,
age, or length of service are exempt to the
extent reasonably necessary for the support
of you and your dependants. |
CCCP
§703.140(b)(10)(E)
|
| Wrongful Death
Actions |
Payments on
account of the wrongful death of an
individual of whom you were a dependant
(your parents or spouse) are exempt to the
extent reasonably necessary for the support
of you and your dependants. |
CCCP
§703.140(b)(11)(B) |
| Personal Injury
Actions |
Payments on
account of personal bodily injury, not
including pain and suffering or compensation
for actual pecuniary loss, of you or your
dependant is exempt to the extent of
$18,675.
Payments in compensation of loss of your
future earnings or the future earnings of a
person for whom you are or were a dependant
(parent or spouse) are exempt to the extent
reasonably necessary for the support of you
and your dependants. |
CCCP
§703.140(b)(11)(D)
CCCP
§703.140(b)(11)(E) |
| Other Property |
Any other
property that is not subject to enforcement
of a money judgment is exempt. (e.g.
property that is not assignable or
transferable).
Licenses issued by a public entity to
engage in a business, profession, or
activity are not subject to enforcement of a
money judgment.
Property of a business partnership is not
subject to enforcement of a money judgment
against a partner.
Fidelity bonds are not subject to
enforcement of a money judgment held by a
general creditor. |
CCCP
§704.210
CCCP §695.060
Corp. Code §16501
Labor Code §404
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| Wages |
No exemption |
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ADDITIONAL FEDERAL EXEMPTIONS
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ASSET |
EXEMPTION DESCRIPTION |
LAW SECTION |
| Retirement
Benefits |
CIA
employees
Civil service employees
Foreign service employees
Military honor roll pensions
Military service employees
Railroad workers
Social Security
Veterans' benefits
Veterans' medal of honor benefits |
50
U.S.C. §403
5 U.S.C.§8346
22 U.S.C. §4060
38 U.S.C. §562
10 U.S.C. §1440
45 U.S.C. §231m
42 U.S.C. §407
38 U.S.C. §3101
38 U.S.C. §562 |
| Survivor's
benefits |
Judges,
US court directors, judicial center
directors, supreme court chief justice
administrators
Lighthouse workers
Military service |
28 U.S.C. §376
33 U.S.C. §775
10 U.S.C. §1450 |
| Death
& Disability Benefits |
Government
employees
Longshoremen and harbor workers
War risk hazard death or injury
compensation |
5 U.S.C. §8130
33 U.S.C. §916
42 U.S.C. §1717 |
| Miscellaneous |
Klamath
Indian tribe benefits for Indians residing
in Oregon
Military deposits in savings accounts
while on permanent duty outside continental
U.S.
Military group life insurance
Railroad workers' unemployment insurance
Seamen's clothing
Seamen's wages (while at sea) pursuant to
a written contract |
25
U.S.C. §543
25 U.S.C. §545
10 U.S.C §1035
38 U.S.C. §770(g)
45 U.S.C.§352(e)
46 U.S.C. §1110
46 U.S.C. §1111
15 U.S.C. §1673 |
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