Exempt Property - Exemptions - Civil Procedure - CA

Section § 704.010

If you owe money and your car is being used to pay off a debt, this law says you're allowed to protect up to $7,500 of the value from being taken. This applies to your car's value, money made from selling your car, or payouts from insurance if your car is lost or damaged. You have 90 days to use this protection after receiving any sale or insurance money. To figure out your car's value, they usually use car price guides. If you only have one car and it's sold off, you automatically get the $7,500 protection without having to fill out any forms, as long as records show you own just one car.

(a) Any combination of the following is exempt in the amount of seven thousand five hundred dollars ($7,500):

(1) The aggregate equity in motor vehicles.

(2) The proceeds of an execution sale of a motor vehicle.

(3) The proceeds of insurance or other indemnification for the loss, damage, or destruction of a motor vehicle.

(b) Proceeds exempt under subdivision (a) are exempt for a period of 90 days after the time the proceeds are actually received by the judgment debtor.

(c) For the purpose of determining the equity, the fair market value of a motor vehicle shall be determined by reference to used car price guides customarily used by California automobile dealers unless the motor vehicle is not listed in such price guides.

(d) If the judgment debtor has only one motor vehicle and it is sold at an execution sale, the proceeds of the execution sale are exempt in the amount of seven thousand five hundred dollars ($7,500) without making a claim. The levying officer shall consult and may rely upon the records of the Department of Motor Vehicles in determining whether the judgment debtor has only one motor vehicle. In the case covered by this subdivision, the exemption provided by subdivision (a) is not available.

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Section § 704.020

This law says that certain personal belongings like household items, appliances, clothes, and other effects can't be taken away if they're necessary and used by a person or their family at their main home. This rule also applies to a separated spouse's home. To decide if something is "necessary," the court looks at whether the item is usually found in a household and if it has a much higher value than similar items in other homes. If a valuable item isn't exempt, any money from selling it is protected for 90 days to allow the owner to buy a similar, ordinary item, if necessary.

(a) Household furnishings, appliances, provisions, wearing apparel, and other personal effects are exempt in the following cases:

(1) If ordinarily and reasonably necessary to, and personally used or procured for use by, the judgment debtor and members of the judgment debtor’s family at the judgment debtor’s principal place of residence.

(2) Where the judgment debtor and the judgment debtor’s spouse live separate and apart, if ordinarily and reasonably necessary to, and personally used or procured for use by, the spouse and members of the spouse’s family at the spouse’s principal place of residence.

(b) In determining whether an item of property is “ordinarily and reasonably necessary” under subdivision (a), the court shall take into account both of the following:

(1) The extent to which the particular type of item is ordinarily found in a household.

(2) Whether the particular item has extraordinary value as compared to the value of items of the same type found in other households.

(c) If an item of property for which an exemption is claimed pursuant to this section is an item of the type ordinarily found in a household but is determined not to be exempt because the item has extraordinary value as compared to the value of items of the same type found in other households, the proceeds obtained at an execution sale of the item are exempt in the amount determined by the court to be a reasonable amount sufficient to purchase a replacement of ordinary value if the court determines that a replacement is reasonably necessary. Proceeds exempt under this subdivision are exempt for a period of 90 days after the proceeds are actually received by the judgment debtor.

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Section § 704.030

This law states that materials bought in good faith to fix or improve a home are protected from being taken to pay off debts, as long as their value doesn't go over $3,500. This applies if the materials are for the debtor's main home or, if the debtor and their spouse live separately, for the spouse's main home.

Material that in good faith is about to be applied to the repair or improvement of a residence is exempt if the equity in the material does not exceed three thousand five hundred dollars ($3,500) in the following cases:

(a) If purchased in good faith for use in the repair or improvement of the judgment debtor’s principal place of residence.

(b) Where the judgment debtor and the judgment debtor’s spouse live separate and apart, if purchased in good faith for use in the repair or improvement of the spouse’s principal place of residence.

home improvement exemption repair materials judgment debtor ...

Section § 704.040

If you have jewelry, family heirlooms, or artworks, you can keep them safe from debt collectors as long as their total value, after subtracting any money you owe on them, doesn't exceed $8,725.

Jewelry, heirlooms, and works of art are exempt to the extent that the aggregate equity therein does not exceed eight thousand seven hundred twenty-five dollars ($8,725).

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Section § 704.050

This law states that items necessary for someone to work or maintain their health are protected from being taken to pay off debts. This includes medical devices, prosthetics, and even modified vehicles for those with disabilities, like cars with wheelchair lifts or special controls. These items can't be seized because they're essential for daily living and employment.

(a) Health aids reasonably necessary to enable the judgment debtor or the spouse or a dependent of the judgment debtor to work or sustain health, and prosthetic and orthopedic appliances, are exempt.

(b) Health aids described in subdivision (a) include vehicles converted for use by the debtor, the debtor’s spouse, or a dependent of the debtor, who has a disability. Conversion of a vehicle for use by a person who has a disability includes altering the interior, installing steering, a wheelchair lift, or motorized steps, or modifying the operation of the vehicle.

health aids exemption prosthetic appliances orthopedic appliances ...

Section § 704.060

This law explains what personal property a person can keep safe from being seized to pay off debts, as long as it's needed for their job. People can keep tools, materials, and one work vehicle as long as their value doesn't go over $8,725 for each person, or $17,450 if shared by a couple in the same profession. If these items are sold or damaged, the money received is also protected for 90 days. However, if someone already has a different vehicle that works for their job, the extra work vehicle might not be protected. For work vehicles, the protection amount is limited to $4,850 per individual or double that for a couple.

(a) Tools, implements, instruments, materials, uniforms, furnishings, books, equipment, one commercial motor vehicle, one vessel, and other personal property are exempt to the extent that the aggregate equity therein does not exceed:

(1) Eight thousand seven hundred twenty-five dollars ($8,725), if reasonably necessary to and actually used by the judgment debtor in the exercise of the trade, business, or profession by which the judgment debtor earns a livelihood.

(2) Eight thousand seven hundred twenty-five dollars ($8,725), if reasonably necessary to and actually used by the spouse of the judgment debtor in the exercise of the trade, business, or profession by which the spouse earns a livelihood.

(3) Twice the amount of the exemption provided in paragraph (1), if reasonably necessary to and actually used by the judgment debtor and by the spouse of the judgment debtor in the exercise of the same trade, business, or profession by which both earn a livelihood. In the case covered by this paragraph, the exemptions provided in paragraphs (1) and (2) are not available.

(b) If property described in subdivision (a) is sold at an execution sale, or if it has been lost, damaged, or destroyed, the proceeds of the execution sale or of insurance or other indemnification are exempt for a period of 90 days after the proceeds are actually received by the judgment debtor or the judgment debtor’s spouse. The amount exempt under this subdivision is the amount specified in subdivision (a) that applies to the particular case less the aggregate equity of any other property to which the exemption provided by subdivision (a) for the particular case has been applied.

(c) Notwithstanding subdivision (a), a motor vehicle is not exempt under subdivision (a) if there is a motor vehicle exempt under Section 704.010 which is reasonably adequate for use in the trade, business, or profession for which the exemption is claimed under this section.

(d) Notwithstanding subdivisions (a) and (b):

(1) The amount of the exemption for a commercial motor vehicle under paragraph (1) or (2) of subdivision (a) is limited to four thousand eight hundred fifty dollars ($4,850).

(2) The amount of the exemption for a commercial motor vehicle under paragraph (3) of subdivision (a) is limited to twice the amount of the exemption provided in paragraph (1) of this subdivision.

tools exemption implements protection commercial motor vehicle protection ...

Section § 704.070

This section explains rules about how much of a person's earnings are protected from being taken to pay off debts. If an employee's wages were already being withheld by a court order for another debt before being paid to them, then those wages cannot be taken again. If wages weren't already under a court order, certain parts of the remaining wages are still protected from being taken. These protections apply whether the wages are in a bank account or in cash.

(a) As used in this section:

(1) “Earnings withholding order” means an earnings withholding order under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).

(2) “Paid earnings” means earnings as defined in Section 706.011 that were paid to the employee during the 30-day period ending on the date of the levy. For the purposes of this paragraph, where earnings that have been paid to the employee are sought to be subjected to the enforcement of a money judgment other than by a levy, the date of levy is deemed to be the date the earnings were otherwise subjected to the enforcement of the judgment.

(3) “Earnings assignment order for support” means an earnings assignment order for support as defined in Section 706.011.

(b) Paid earnings that can be traced into deposit accounts or in the form of cash or its equivalent as provided in Section 703.080 are exempt in the following amounts:

(1) All of the paid earnings are exempt if prior to payment to the employee they were subject to an earnings withholding order or an earnings assignment order for support.

(2) Disposable earnings that would otherwise not be subject to levy under Section 706.050 that are levied upon or otherwise sought to be subjected to the enforcement of a money judgment are exempt if prior to payment to the employee they were not subject to an earnings withholding order or an earnings assignment order for support.

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Section § 704.080

This law specifies how certain funds in bank accounts are protected from being seized for debt collection. It outlines what counts as a 'deposit account' with government benefits and how much money in these accounts is protected without needing to claim an exemption. Amounts vary depending on whether benefits are public aid or social security; for example, up to $1,750 or $3,500 is protected for a single depositor. If an account has more funds than the protected limit, only the excess can be questioned through legal proceedings. The financial institution must hold the excess in a separate account while any claim is resolved. If the judgment creditor doesn't challenge the exemption as outlined, the funds are released back to the account holder.

(a) For the purposes of this section:

(1) “Deposit account” means a deposit account in which payments of public benefits or social security benefits are directly deposited by the government or its agent.

(2) “Social security benefits” means payments authorized by the Social Security Administration for regular retirement and survivors’ benefits, supplemental security income benefits, coal miners’ health benefits, and disability insurance benefits. “Public benefits” means aid payments authorized pursuant to subdivision (a) of Section 11450 of the Welfare and Institutions Code, payments for supportive services as described in Section 11323.2 of the Welfare and Institutions Code, and general assistance payments made pursuant to Section 17000.5 of the Welfare and Institutions Code.

(b) A deposit account is exempt without making a claim in the following amount:

(1) One thousand seven hundred fifty dollars ($1,750) where one depositor is the designated payee of the directly deposited public benefits payments.

(2) Three thousand five hundred dollars ($3,500) where one depositor is the designated payee of directly deposited social security payments.

(3) Two thousand six hundred dollars ($2,600) where two or more depositors are the designated payees of the directly deposited public benefits payments, unless those depositors are joint payees of directly deposited payments that represent a benefit to only one of the depositors, in which case the exemption under paragraph (1) applies.

(4) Five thousand two hundred fifty dollars ($5,250) where two or more depositors are the designated payees of directly deposited social security payments, unless those depositors are joint payees of directly deposited payments that represent a benefit to only one of the depositors, in which case the exemption under paragraph (2) applies.

(c) The amount of a deposit account that exceeds the exemption provided in subdivision (b) is exempt to the extent that it consists of payments of public benefits or social security benefits.

(d) Notwithstanding Article 5 (commencing with Section 701.010) of Chapter 3, when a deposit account is levied upon or otherwise sought to be subjected to the enforcement of a money judgment, the financial institution that holds the deposit account shall either place the amount that exceeds the exemption provided in subdivision (b) in a suspense account or otherwise prohibit withdrawal of that amount pending notification of the failure of the judgment creditor to file the affidavit required by this section or the judicial determination of the exempt status of the amount. Within 10 business days after the levy, the financial institution shall provide the levying officer with a written notice stating (1) that the deposit account is one in which payments of public benefits or social security benefits are directly deposited by the government or its agent and (2) the balance of the deposit account that exceeds the exemption provided by subdivision (b). Promptly upon receipt of the notice, the levying officer shall serve the notice on the judgment creditor. Service shall be made personally or by mail.

(e) Notwithstanding the procedure prescribed in Article 2 (commencing with Section 703.510), whether there is an amount exempt under subdivision (c) shall be determined as follows:

(1) Within five days after the levying officer serves the notice on the judgment creditor under subdivision (d), a judgment creditor who desires to claim that the amount is not exempt shall file with the court an affidavit alleging that the amount is not exempt and file a copy with the levying officer. The affidavit shall be in the form of the notice of opposition provided by Section 703.560, and a hearing shall be set and held, and notice given, as provided by Sections 703.570 and 703.580. For the purpose of this subdivision, the “notice of opposition to the claim of exemption” in Sections 703.570 and 703.580 means the affidavit under this subdivision.

(2) If the judgment creditor does not file the affidavit with the levying officer and give notice of hearing pursuant to Section 703.570 within the time provided in paragraph (1), the levying officer shall release the deposit account and shall notify the financial institution.

(3) The affidavit constitutes the pleading of the judgment creditor, subject to the power of the court to permit amendments in the interest of justice. The affidavit is deemed controverted and no counteraffidavit is required.

(4) At a hearing under this subdivision, the judgment debtor has the burden of proving that the excess amount is exempt.

(5) At the conclusion of the hearing, the court by order shall determine whether or not the amount of the deposit account is exempt pursuant to subdivision (c) in whole or in part and shall make an appropriate order for its prompt disposition. No findings are required in a proceeding under this subdivision.

(6) Upon determining the exemption claim for the deposit account under subdivision (c), the court shall immediately transmit a certified copy of the order of the court to the financial institution and to the levying officer. If the order determines that all or part of the excess is exempt under subdivision (c), with respect to the amount of the excess which is exempt, the financial institution shall transfer the exempt excess from the suspense account or otherwise release any restrictions on its withdrawal by the judgment debtor. The transfer or release shall be effected within three business days of the receipt of the certified copy of the court order by the financial institution.

(f) If the judgment debtor claims that a portion of the amount is exempt other than pursuant to subdivision (c), the claim of exemption shall be made pursuant to Article 2 (commencing with Section 703.510). If the judgment debtor also opposes the judgment creditor’s affidavit regarding an amount exempt pursuant to subdivision (c), both exemptions shall be determined at the same hearing, provided the judgment debtor has complied with Article 2 (commencing with Section 703.510).

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Section § 704.090

This law explains the protection of funds held in inmate trust accounts for individuals in prison or detention facilities. Normally, these accounts are protected up to $1,750 without needing to file a claim. If the inmate is married, their spouse can also claim this protection. However, if the funds are being collected for specific types of restitution fines or orders, the protected amount is only $325. These exemptions are fixed and not subject to adjustment.

(a) The funds of a judgment debtor confined in a prison or facility under the jurisdiction of the Department of Corrections or the Department of the Youth Authority or confined in any county or city jail, road camp, industrial farm, or other local correctional facility, held in trust for or to the credit of the judgment debtor, in an inmate’s trust account or similar account by the state, county, or city, or any agency thereof, are exempt without making a claim in the amount of one thousand seven hundred fifty dollars ($1,750). If the judgment debtor is married, each spouse is entitled to a separate exemption under this section or the spouses may combine their exemptions.

(b) Notwithstanding subdivision (a), if the judgment is for a restitution fine or order imposed pursuant to subdivision (a) of Section 13967 of the Government Code, as operative on or before September 28, 1994, or Section 1203.04 of the Penal Code, as operative on or before August 2, 1995, or Section 1202.4 of the Penal Code, the funds held in trust for, or to the credit of, a judgment debtor described in subdivision (a) are exempt in the amount of three hundred twenty-five dollars ($325) without making a claim. The exemption provided in this subdivision is not subject to adjustment under Section 703.150.

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Section § 704.100

This law explains how life insurance policies are treated when someone owes money due to a court judgment. If you have life insurance that hasn't matured yet, it's generally safe from being used to pay off your debts, except for its loan value. If you do have a loan against such policies, up to $13,975 of that can still be protected. If you're married, both you and your spouse can claim this protection, and you can combine your amounts. Additionally, any money you receive from a life insurance policy that has matured (meaning it's ready to pay out) is protected if you need it to support yourself, your spouse, or your dependents.

(a) Unmatured life insurance policies (including endowment and annuity policies), but not the loan value of such policies, are exempt without making a claim.

(b) The aggregate loan value of unmatured life insurance policies (including endowment and annuity policies) is subject to the enforcement of a money judgment but is exempt in the amount of thirteen thousand nine hundred seventy-five dollars ($13,975). If the judgment debtor is married, each spouse is entitled to a separate exemption under this subdivision, and the exemptions of the spouses may be combined, regardless of whether the policies belong to either or both spouses and regardless of whether the spouse of the judgment debtor is also a judgment debtor under the judgment. The exemption provided by this subdivision shall be first applied to policies other than the policy before the court and then, if the exemption is not exhausted, to the policy before the court.

(c) Benefits from matured life insurance policies (including endowment and annuity policies) are exempt to the extent reasonably necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.

unmatured life insurance endowment policies annuity policies ...

Section § 704.105

This law deals with money in accounts set up under the Golden State Scholarshare Trust Act, protecting it from being taken by creditors. If you have money in such an account, it's generally safe from creditors without needing to make a legal claim, with some limits. Contributions made to these accounts in the year before a court orders you to pay money are protected up to a certain amount, which is the same as the IRS's gift tax exclusion limit. Contributions made between one and two years before a court order are also protected up to this limit. All accounts for the same beneficiary are treated as one. This protection stands regardless of other related legal requirements.

Money held in an account owned by the judgment debtor and established pursuant to the Golden State Scholarshare Trust Act (Article 19 (commencing with Section 69980) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code) is exempt without making a claim, subject to the following limitations:

(a) The amount exempted for contributions to an account during the 365-day period prior to the date of entry of a money judgment, in the aggregate during this period, shall not exceed the amount of the annual gift tax exclusion under Section 2503(b) of the Internal Revenue Code of 1986, as amended, in effect at the time of entry of the money judgment.

(b) The amount exempted for contributions to an account during the period commencing 730 days prior to and ending 366 days prior to the date of entry of a money judgment, in the aggregate during this period, shall not exceed the amount of the annual gift tax exclusion under Section 2503(b) of the Internal Revenue Code of 1986, as amended, in effect at the time of entry of the money judgment.

(c) For the purposes of this section, “account” includes all accounts having the same beneficiary.

(d) This section is not subject to the requirements of Section 703.150.

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Section § 704.110

This section clarifies that pensions, annuities, and other benefits from public retirement systems in California are generally protected from being seized. However, if someone owes child, family, or spousal support, these protected funds might be used to pay off those debts. The court decides the amount that can be used in such cases. If the payments are regular, they could be subject to an earnings assignment order, which limits how much can be taken based on a specific formula. There are also specific procedures for intercepting lump-sum distributions. Furthermore, small administrative fees may be deducted due to assignment orders.

(a) As used in this section:

(1) “Public entity” means the state, or a city, city and county, county, or other political subdivision of the state, or a public trust, public corporation, or public board, or the governing body of any of them, but does not include the United States except where expressly so provided.

(2) “Public retirement benefit” means a pension or an annuity, or a retirement, disability, death, or other benefit, paid or payable by a public retirement system.

(3) “Public retirement system” means a system established pursuant to statute by a public entity for retirement, annuity, or pension purposes or payment of disability or death benefits.

(b) All amounts held, controlled, or in process of distribution by a public entity derived from contributions by the public entity or by an officer or employee of the public entity for public retirement benefit purposes, and all rights and benefits accrued or accruing to any person under a public retirement system, are exempt without making a claim.

(c) Notwithstanding subdivision (b), where an amount described in subdivision (b) becomes payable to a person and is sought to be applied to the satisfaction of a judgment for child, family, or spousal support against that person:

(1) Except as provided in paragraphs (2) and (3), the amount is exempt only to the extent that the court determines under subdivision (c) of Section 703.070.

(2) If the amount sought to be applied to the satisfaction of the judgment is payable periodically, the amount payable is subject to an earnings assignment order for support as defined in Section 706.011, or any other applicable enforcement procedure, but the amount to be withheld pursuant to the assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052. The paying entity may deduct from the payment being made to the judgment debtor, for each payment made pursuant to an earnings assignment order under this paragraph, an amount reflecting the actual cost of administration caused by the assignment order of up to two dollars ($2) for each payment.

(3) If the intercept procedure provided for in Section 11357 of the Welfare and Institutions Code is used for benefits that are payable periodically, the amount to be withheld shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052.

(4) If the amount sought to be applied to the satisfaction of the judgment is payable as a lump-sum distribution, the amount payable is subject to the intercept procedure provided in Section 11357 of the Welfare and Institutions Code or any other applicable enforcement procedure.

(d) All amounts received by any person, a resident of the state, as a public retirement benefit or as a return of contributions and interest thereon from the United States or a public entity or from a public retirement system are exempt.

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Section § 704.111

If you owe money but are receiving payments for alimony, child support, or separate maintenance, this money can't be taken away if it's needed to support you and your dependents.

Alimony, support, and separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, are exempt.

alimony exemption support payments separate maintenance ...

Section § 704.113

This law explains what 'vacation credits' are for public employees and sets an exemption limit for these credits along with related types of leave or pay. Specifically, up to $7,500 of a person’s vacation credits or unused vacation pay, sick leave, or family leave is protected from being taken to pay debts. However, if these credits are paid out as part of someone's earnings, they're still subject to wage garnishments, similar to regular pay checks.

(a) As used in this chapter, “vacation credits” means vacation credits accumulated by a state employee pursuant to Section 19858.1 of the Government Code or by any other public employee pursuant to any law for the accumulation of vacation credits applicable to the employee.

(b) The aggregate interest, not to exceed seven thousand five hundred dollars ($7,500), in vacation credits or accrued, or unused, vacation pay, sick leave, or family leave is exempt.

(c) Amounts paid periodically or as a lump sum representing vacation credits are subject to any earnings withholding order served under Chapter 5 (commencing with Section 706.010) or any earnings assignment order for support as defined in Section 706.011 and are exempt to the same extent as earnings of a judgment debtor.

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Section § 704.114

This law lets earnings assignment orders for child support create a lien on an employee's contributions to retirement funds held by public entities, except for the U.S. government, to fulfill a support judgment. If asked by the employee, the public entity must send the contributions to the court unless an order stops this action. The court clerk has to inform all relevant parties within 10 days of receiving these funds. If no one acts to enforce the support order within 30 days, the court might return the funds to the public entity unless told otherwise. Courts can't require employees to request their contributions back as a condition for support orders.

(a) Notwithstanding any other provision of law, service of an earnings assignment order for support, or an order or notice to withhold income for child support on any public entity described in Section 704.110, other than the United States government, creates a lien on all employee contributions in the amount necessary to satisfy a support judgment as determined under Section 695.210 to the extent that the judgment remains enforceable.

(b) The public entity shall comply with any request for a return of employee contributions by an employee named in the order or notice to withhold by delivering the contributions to the clerk of the court in which the support order was awarded or last registered, unless the entity has received a certified copy of an order or administrative notice terminating the earnings assignment order for support.

(c) Upon receipt of moneys pursuant to this section, the clerk of the court, within 10 days, shall send written notice of the receipt of the deposit to the parties and to the local child support agency enforcing any order pursuant to Section 17400 of the Family Code.

(d) Moneys received pursuant to this section are subject to any procedure available to enforce an order for support, but if no enforcement procedure is commenced after 30 days have elapsed from the date the notice of receipt is sent, the clerk shall, upon request, return the moneys to the public entity that delivered the moneys to the court unless the public entity has informed the court in writing that the moneys shall be released to the employee.

(e) A court shall not directly or indirectly condition the issuance, modification, or termination of, or condition the terms or conditions of, any order for support upon the making of a request for the return of employee contributions by an employee.

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Section § 704.115

This law outlines which types of retirement plans are protected from being seized to pay off debts, specifying that most retirement funds are safe. However, if someone owes child, family, or spousal support, those funds could be partially used. The law also restricts how much can be taken from retirement funds to cover personal debts, ensuring there's enough left for the person's living needs during retirement. For certain debts, retirement funds can be garnished similar to wages, but protections are in place to prevent excessive withholdings.

(a) As used in this section, “retirement plan” means:

(1) Private retirement plans, including, but not limited to, union retirement plans.

(2) Profit-sharing plans designed and used for retirement purposes.

(3) Self-employed retirement plans and individual retirement annuities or accounts provided for in the Internal Revenue Code of 1986, as amended, including individual retirement accounts qualified under Section 408 or 408A of that code, to the extent the amounts held in the plans, annuities, or accounts do not exceed the maximum amounts exempt from federal income taxation under that code.

(4) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under Sections 403, 414, or 457 of the Internal Revenue Code of 1986, as amended, to the extent the amounts held in the plans, annuities, or accounts do not exceed the maximum amounts exempt from federal income taxation under that code and are not otherwise exempt under federal law.

(b) All amounts held, controlled, or in process of distribution by a retirement plan, for the payment of benefits as an annuity, pension, retirement allowance, disability payment, or death benefit from a retirement plan are exempt.

(c) Notwithstanding subdivision (b), where an amount described in subdivision (b) becomes payable to a person and is sought to be applied to the satisfaction of a judgment for child, family, or spousal support against that person:

(1) Except as provided in paragraph (2), the amount is exempt only to the extent that the court determines under subdivision (c) of Section 703.070.

(2) If the amount sought to be applied to the satisfaction of the judgment is payable periodically, the amount payable is subject to an earnings assignment order for support as defined in Section 706.011 or any other applicable enforcement procedure, but the amount to be withheld pursuant to the assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052.

(d) After payment, the amounts described in subdivision (b) and all contributions and interest thereon returned to any member of a retirement plan are exempt.

(e)

(1) Notwithstanding subdivisions (b) and (d), except as provided in subdivision (f), the amounts described in paragraphs (3) and (4) of subdivision (a) are exempt only to the extent necessary to provide for the support of the judgment debtor when the judgment debtor retires and for the support of the spouse and dependents of the judgment debtor, taking into account all resources that are likely to be available for the support of the judgment debtor when the judgment debtor retires.

(2) For personal debt, as defined in subdivision (d) of Section 683.110, the amount necessary to provide for the support of the judgment debtor cannot be, unless otherwise provided by federal law, less than the amount listed in subsection (n) of Section 522 of Title 11 of the United States Code, as adjusted in accordance with subsection (b) of Section 104 of Title 11 of the United States Code. The exempt amount may be aggregated across all retirement plans in the judgment debtor’s name. The exempt amount may be reduced to the extent that such value is attributable to any portion of any property the debtor disposed of with the intent to hinder, delay, or defraud a creditor, and that the debtor could not have exempted at the time the debtor so disposed of the property.

(3) In determining the amount to be exempt under this subdivision, the court shall allow the judgment debtor such additional amount as is necessary to pay any federal and state income taxes owed as a result of the application of funds in a retirement plan to the satisfaction of the money judgment.

(f) Where the amounts described in paragraphs (3) and (4) of subdivision (a) are payable periodically, the amount of the periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law). To the extent a lump-sum distribution from an individual retirement account is treated differently from a periodic distribution under this subdivision, any lump-sum distribution from an account qualified under Section 408A of the Internal Revenue Code shall be treated the same as a lump-sum distribution from an account qualified under Section 408 of the Internal Revenue Code for purposes of determining whether any of that payment may be applied to the satisfaction of a money judgment.

retirement plan exemptions union retirement plans profit-sharing plans ...

Section § 704.120

This law makes contributions by workers and employers to unemployment funds automatically protected from being claimed by creditors. Before they're paid out, benefits like unemployment, certain incentives, supplemental unemployment plans, and union benefits are protected too. Once the benefits are paid, they remain protected, except when they're used to fulfill child support judgments. If someone owes child support, their unemployment benefits can be partially used to pay off that debt, but only up to 25% of each payment. The organization paying out these benefits can charge a small fee for handling this deduction.

(a) Contributions by workers payable to the Unemployment Compensation Disability Fund and by employers payable to the Unemployment Fund are exempt without making a claim.

(b) Before payment, amounts held for payment of the following benefits are exempt without making a claim:

(1) Benefits payable under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.

(2) Incentives payable under Division 2 (commencing with Section 5000) of the Unemployment Insurance Code.

(3) Benefits payable under an employer’s plan or system to supplement unemployment compensation benefits of the employees generally or for a class or group of employees.

(4) Unemployment benefits payable by a fraternal organization to its bona fide members.

(5) Benefits payable by a union due to a labor dispute.

(c) After payment, the benefits described in subdivision (b) are exempt.

(d) During the payment of benefits described in paragraph (1) of subdivision (b) to a judgment debtor under a support judgment, the judgment creditor may, through the appropriate local child support agency, seek to apply the benefit payment to satisfy the judgment as provided by Section 17518 of the Family Code.

(e) During the payment of benefits described in paragraphs (2) to (5), inclusive, of subdivision (b) to a judgment debtor under a support judgment, the judgment creditor may, directly or through the appropriate local child support agency, seek to apply the benefit payments to satisfy the judgment by an earnings assignment order for support as defined in Section 706.011 or any other applicable enforcement procedure. If the benefit is payable periodically, the amount to be withheld pursuant to the assignment order or other procedure shall be 25 percent of the amount of each periodic payment or any lower amount specified in writing by the judgment creditor or court order, rounded down to the nearest whole dollar. Otherwise the amount to be withheld shall be the amount the court determines under subdivision (c) of Section 703.070. The paying entity may deduct from each payment made pursuant to an assignment order under this subdivision an amount reflecting the actual cost of administration caused by the assignment order up to two dollars ($2) for each payment.

unemployment benefits disability fund contributions employer contributions ...

Section § 704.130

This law explains how disability or health insurance benefits are protected from being claimed by creditors. Before and after payment, these benefits are generally protected, meaning they can't be taken by creditors. However, if the benefits are specifically for health care costs and the creditor is the health care provider, then this protection doesn't apply. Additionally, if there's a support judgment (like child support owed), the money from disability benefits can be used to pay off this debt, but only up to a certain limit.

(a) Before payment, benefits from a disability or health insurance policy or program are exempt without making a claim. After payment, the benefits are exempt.

(b) Subdivision (a) does not apply to benefits that are paid or payable to cover the cost of health care if the judgment creditor is a provider of health care whose claim is the basis on which the benefits are paid or payable.

(c) During the payment of disability benefits described in subdivision (a) to a judgment debtor under a support judgment, the judgment creditor or local child support agency may seek to apply the benefit payments to satisfy the judgment by an earnings assignment order for support, as defined in Section 706.011, or any other applicable enforcement procedure, but the amount to be withheld pursuant to the earnings assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings assignment order for support under Section 706.052.

disability benefits health insurance policy creditor exemption ...

Section § 704.140

If you're injured and win a lawsuit or get a settlement, that money is generally protected and can't be taken by creditors. This protection helps you and your dependents financially. However, if the creditor is a healthcare provider who treated you for that injury, the money might not be protected. Also, if the money is paid over time, only a limited amount can be used to pay off a debt, similar to how wages can be garnished.

(a) Except as provided in Article 5 (commencing with Section 708.410) of Chapter 6, a cause of action for personal injury is exempt without making a claim.

(b) Except as provided in subdivisions (c) and (d), an award of damages or a settlement arising out of personal injury is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.

(c) Subdivision (b) does not apply if the judgment creditor is a provider of health care whose claim is based on the providing of health care for the personal injury for which the award or settlement was made.

(d) Where an award of damages or a settlement arising out of personal injury is payable periodically, the amount of such periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).

personal injury settlement judgment creditor healthcare provider claims ...

Section § 704.150

This law section explains that if someone has a lawsuit related to the wrongful death of a close person, like a spouse, that lawsuit is protected from being claimed by creditors. If you get money from such a lawsuit or settlement due to someone's wrongful death, that money is also protected if you need it for your family's living expenses. However, if the money is paid out over time, some of it can be taken to pay off debts, similar to how wages might be garnished to pay a judgment.

(a) Except as provided in Article 5 (commencing with Section 708.410) of Chapter 6, a cause of action for wrongful death is exempt without making a claim.

(b) Except as provided in subdivision (c), an award of damages or a settlement arising out of the wrongful death of the judgment debtor’s spouse or a person on whom the judgment debtor or the judgment debtor’s spouse was dependent is exempt to the extent reasonably necessary for support of the judgment debtor and the spouse and dependents of the judgment debtor.

(c) Where an award of damages or a settlement arising out of the wrongful death of the judgment debtor’s spouse or a person on whom the judgment debtor or the judgment debtor’s spouse was dependent is payable periodically, the amount of such a periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).

wrongful death lawsuit protection creditors ...

Section § 704.160

This law explains that before receiving payment, a workers' compensation claim is protected and generally can't be taken, except after payment under specific conditions noted in the law. However, when the person receiving workers' compensation also has a child support debt, the money from temporary disability benefits can be used to pay that debt. This involves 25% of each periodic payment, unless otherwise specified. Definitions of terms like 'judgment debtor' and 'support' are also provided.

(a) Except as provided by Chapter 1 (commencing with Section 4900) of Part 3 of Division 4 of the Labor Code, before payment, a claim for workers’ compensation or workers’ compensation awarded or adjudged is exempt without making a claim. Except as specified in subdivision (b), after payment, the award is exempt.

(b) Notwithstanding any other provision of law, during the payment of workers’ compensation temporary disability benefits described in subdivision (a) to a support judgment debtor, the support judgment creditor may, through the appropriate local child support agency, seek to apply the workers’ compensation temporary disability benefit payment to satisfy the support judgment as provided by Section 17404 of the Family Code.

(c) Notwithstanding any other provision of law, during the payment of workers’ compensation temporary disability benefits described in subdivision (a) to a support judgment debtor under a support judgment, including a judgment for reimbursement of public assistance, the judgment creditor may, directly or through the appropriate local child support agency, seek to apply the temporary disability benefit payments to satisfy the support judgment by an earnings assignment order for support, as defined in Section 5208 of the Family Code, or any other applicable enforcement procedure. The amount to be withheld pursuant to the earnings assignment order for support or other enforcement procedure shall be 25 percent of the amount of each periodic payment or any lower amount specified in writing by the judgment creditor or court order, rounded down to the nearest dollar. Otherwise, the amount to be withheld shall be the amount the court determines under subdivision (c) of Section 703.070. The paying entity may deduct from each payment made pursuant to an order assigning earnings under this subdivision an amount reflecting the actual cost of administration of this assignment, up to two dollars ($2) for each payment.

(d) Unless the provision or context otherwise requires, the following definitions govern the construction of this section.

(1) “Judgment debtor” or “support judgment debtor” means a person who is owing a duty of support.

(2) “Judgment creditor” or “support judgment creditor” means the person to whom support has been ordered to be paid.

(3) “Support” refers to an obligation owing on behalf of a child, spouse, or family; or an amount owing pursuant to Section 17402 of the Family Code. It also includes past due support or arrearage when it exists.

workers' compensation temporary disability benefits child support ...

Section § 704.170

This law states that financial assistance given through public welfare programs or by certain nonprofit organizations is protected from creditors both before and after it's paid out. You don't need to take any action or make a formal claim to ensure this protection.

Before payment, aid provided pursuant to Division 9 (commencing with Section 10000) of the Welfare and Institutions Code or similar aid provided by a charitable organization or a fraternal benefit society as defined in Section 10990 of the Insurance Code, is exempt without making a claim. After payment, the aid is exempt.

public welfare assistance charitable organization aid fraternal benefit society ...

Section § 704.180

If you are forced to move from your home and you get relocation benefits from certain government programs, these benefits are protected from being claimed by creditors both before and after you receive them.

Before payment, relocation benefits for displacement from a dwelling which are to be paid pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code or the federal “Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970” (42 U.S.C. Sec. 4601 et seq.), as amended, are exempt without making a claim. After payment, the benefits are exempt.

relocation benefits displacement from dwelling creditor protection ...

Section § 704.190

This law says that money given to you as financial aid for school expenses is protected from being taken to pay off debts. This protection applies both before you receive the money and after you have it.

(a) As used in this section, “institution of higher education” means “institution of higher education” as defined in Section 1141(a) of Title 20 of the United States Code, as amended.

(b) Before payment, financial aid for expenses while attending school provided to a student by an institution of higher education is exempt without making a claim. After payment, the aid is exempt.

financial aid exemption school expenses student aid protection ...

Section § 704.200

This law explains that certain cemetery-related properties are protected from being taken to pay off debts. A family burial plot is automatically protected, meaning you don’t need to take any action to keep it safe. Additionally, cemetery plots intended for a person who owes money (debtor) and their spouse are also protected from seizure. However, if land is being held to sell as cemetery plots, it’s not protected.

(a) As used in this section:

(1) “Cemetery” has the meaning provided by Section 7003 of the Health and Safety Code.

(2) “Family plot” is a plot that satisfies the requirements of Section 8650 of the Health and Safety Code.

(3) “Plot” has the meaning provided by Section 7022 of the Health and Safety Code.

(b) A family plot is exempt without making a claim.

(c) Except as provided in subdivision (d), a cemetery plot for the judgment debtor and the spouse of the judgment debtor is exempt.

(d) Land held for the purpose of sale or disposition as cemetery plots or otherwise is not exempt.

family plot exemption cemetery plot protection judgment debtor ...

Section § 704.210

This law section says that certain types of property are automatically protected from being taken to pay off a debt even if you don't specifically claim them as exempt.

Property that is not subject to enforcement of a money judgment is exempt without making a claim.

property exemption money judgment debt protection ...

Section § 704.220

This law makes sure that a certain amount of money in your bank account is protected from debt collection if it's under a specific amount set by the state for basic family needs. If the bank knows you have other legal protections, those might apply too. But, this protection doesn't cover money owed for things like wages, child support, or certain taxes. The rules also explain how this protection works if you have multiple accounts at the same bank or at different banks. If your accounts together have less than the protected amount, the bank must protect it. The law also outlines processes for disputes over which account the protection applies to. Banks must inform you about these protections during a levy, and updates to the necessary forms are required.

(a) Money in the judgment debtor’s deposit account in an amount equal to or less than the minimum basic standard of adequate care for a family of four for Region 1, established by Section 11452 of the Welfare and Institutions Code and as annually adjusted by the State Department of Social Services pursuant to Section 11453 of the Welfare and Institutions Code, is exempt without making a claim.

(b)

(1) Subdivision (a) does not preclude or reduce a judgment debtor’s right to any other exemption provided by state or federal law.

(2) If the financial institution holding the judgment debtor’s deposit account has actual knowledge that the judgment debtor is entitled to one or more exemptions that the financial institution is required to apply pursuant to federal law or state law other than that set forth in subdivision (a), the following shall apply:

(A) If the sum of the amount of money in the deposit account that would be exempt from levy under the additional exemptions is less than or equal to the amount set forth in subdivision (a), the additional exemptions described in this paragraph shall be considered encompassed within the exemption set forth in subdivision (a) and subdivision (a) shall apply.

(B) If the sum of the amount of money in the deposit account that would be exempt from levy under the additional exemptions is greater than the amount set forth in subdivision (a), subdivision (a) shall not apply and instead money in the deposit account equal to or less than the sum of the additional exemptions is exempt without making a claim.

(c) Subdivision (a) does not apply to money levied upon to satisfy any of the following:

(1) A levy to satisfy a judgment for wages owed, child support, or spousal support. For purposes of this paragraph, “wages owed” includes damages and penalties.

(2) A provision of the Public Resources Code, Revenue and Taxation Code, or Unemployment Insurance Code.

(3) A warrant or notice of levy issued by the state, or any department or agency thereof, for the collection of a liability.

(d) A levy against a judgment debtor’s deposit account shall include a written description of the requirements of this section.

(e)

(1) The exemption applies per debtor, not per account.

(2) If a judgment debtor holds an interest in multiple accounts at a single financial institution, the judgment creditor or judgment debtor may file an ex parte application in the superior court in which the judgment was entered for a hearing to establish how and to which account the exemption should be applied. Subject to a service of an order issued in that hearing, if any, the financial institution may determine how and to which account the exemption should be applied. This paragraph does not create a cause of action against a judgment creditor who executes a levy or against a financial institution that complies with a levy pursuant to the court’s determination.

(3) If a judgment debtor holds an interest in multiple accounts at two or more financial institutions, the judgment creditor shall, and the judgment debtor may, file an ex parte application in the superior court in which the judgment was entered for a hearing to establish how and to which account the exemption should be applied. Subject to a service of an order issued in that hearing, if any, the financial institutions shall comply with the levy subject to the exemption. This paragraph does not create a cause of action against a judgment creditor who executes a levy or against a financial institution which complies with a levy pursuant to the court’s determination.

(4) Notwithstanding paragraph (2), if a judgment debtor holds multiple accounts at a single financial institution, and those accounts cumulatively contain an amount less than or equal to the amount specified in subdivision (a), the financial institution shall protect the full amount in those accounts.

(5) Notwithstanding paragraph (2), if a judgment debtor holds multiple accounts at a single financial institution, and each of those accounts contains an amount less than the amount specified in subdivision (a) but the accounts cumulatively contain an amount greater than the amount specified in subdivision (a), the financial institution shall protect an aggregate amount equal to the amount specified in subdivision (a).

(f) Subdivision (e) of Section 700.140 applies to a financial institution acting under this section.

(g) The Judicial Council shall amend or adopt all forms necessary to implement this section. The forms shall clearly delineate the amount of funds exempt from levy by a financial institution, including funds exempted by this section.

(h) This section shall become operative on September 1, 2020.

judgment debtor deposit account basic standard of adequate care ...

Section § 704.225

If someone owes money from a legal judgment and has funds in a bank account, this law allows them to keep enough money to support themselves and their family. This means essential living needs are prioritized before paying off the debt.

Money in a judgment debtor’s deposit account that is not otherwise exempt under this chapter is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.

judgment debtor deposit account exempt money ...

Section § 704.230

If someone owes a debt and gets money from FEMA, that money is automatically protected from being taken to pay their debts. They don't have to do anything extra to claim this protection.

Money provided to the judgment debtor by the Federal Emergency Management Agency (FEMA) is exempt without making a claim.

FEMA funds judgment debtor debt protection ...

Section § 704.235

This law states that a one-time lump-sum payment from a HOPE trust account is normally protected from being claimed by creditors, except in cases related to child or spousal support and criminal restitution. If a bank gets this payment directly from the state and it's marked as a HOPE trust account payment, it should treat it as protected from claims, unless it's for the exceptions mentioned.

(a) A one-time lump-sum payment made from a HOPE trust account, as defined in subdivision (a) of Section 18997.51 of the Welfare and Institutions Code, shall be exempt without making a claim, except as provided in subdivision (b).

(b) A one-time lump-sum payment described in subdivision (a) is not exempt from a levy in connection with child support, spousal support, family support, or a criminal restitution.

(c) A financial institution that receives a payment described in subdivision (a) directly from the state shall treat the payment as exempt from levy if it is designated “HOPE trust account payment” or if the payment is otherwise sufficiently identified to inform the financial institution that the payment is a HOPE trust account payment.

HOPE trust account lump-sum payment exempt from levy ...

Exemptions

ExemptionsExempt Property

Section § 704.010

Section § 704.020

Section § 704.030

Section § 704.040

Section § 704.050

Section § 704.060

Section § 704.070

Section § 704.080

Section § 704.090

Section § 704.100

Section § 704.105

Section § 704.110

Section § 704.111

Section § 704.113

Section § 704.114

Section § 704.115

Section § 704.120

Section § 704.130

Section § 704.140

Section § 704.150

Section § 704.160

Section § 704.170

Section § 704.180

Section § 704.190

Section § 704.200

Section § 704.210

Section § 704.220

Section § 704.225

Section § 704.230

Section § 704.235

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