ExemptionsProcedure for Claiming Exemptions After Levy

Section § 703.510

Explanation

This section deals with how property that has been taken by a court order can be claimed as exempt, meaning it should not be taken. Specifically, if money in a bank account is automatically protected by certain laws, the bank must release it back to the account owner within five business days after receiving a written notice that explains why the money is exempt. This notice also needs to be sent to the person or entity who won the judgment on the debt within the same timeframe. For other types of property that are automatically protected, there is a special process to get it back without needing to file a detailed exemption claim.

(a)CA Civil Procedure Code § 703.510(a) Except as otherwise provided by statute, property that has been levied upon may be claimed to be exempt as provided in this article.
(b)CA Civil Procedure Code § 703.510(b) If property in a deposit account that is exempt without making a claim, as described in subdivision (b) of Section 704.080 or subdivision (a) of Section 704.220, is levied upon, the property shall be released by the financial institution holding the judgment debtor’s deposit account within five business days of the financial institution receiving written notice from the judgment debtor setting forth the facts supporting the exemption without the necessity of making a claim under this title. The judgment debtor’s written notice to the financial institution shall be served via first-class mail on the judgment creditor or judgment creditor’s attorney of record within five business days of notice being sent by the judgment debtor to the financial institution. The written notice shall be addressed to the financial institution identified pursuant to subdivision (c) or (d) of Section 684.110.
(c)CA Civil Procedure Code § 703.510(c) If property that is exempt without making a claim is levied upon, other than the property in a deposit account described in subdivision (b), the property may be released pursuant to the exemption procedure provided in this article.
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Section § 703.520

Explanation

This law is about how someone can claim their property as exempt from being taken to pay a debt. To do this, the person must file a claim with the officer handling the collection (called the levying officer). If notified in person, they have 15 days to file the claim. If notified by mail, they have 20 days. If the claim is mailed with a tracking number, it's considered filed when postmarked; without tracking, it's filed when received. The claim has to be under oath and include details like the claimant's and debtor's information, a description of the exempt property, any similar property owned, and the legal basis for the exemption claim. This requirement started on September 1, 2020.

(a)CA Civil Procedure Code § 703.520(a) The claimant may make a claim of exemption by filing with the levying officer, either in person or by mail, a claim of exemption together with a copy of the claim. If the claimant is personally served, the claim shall be made within 15 days after the date the notice of levy on the property claimed to be exempt is served on the judgment debtor. If the claimant is served by mail, the claim shall be made within 20 days after the date the notice of levy on the property claimed to be exempt is served on the judgment debtor. If the claim is filed by mail and assigned a tracking number by the United States Postal Service or another common carrier, the filing shall be deemed complete on the date the claim is postmarked. If the claim is filed by mail and not assigned a tracking number, the filing shall be deemed complete on the date the claim is received by the levying officer.
(b)CA Civil Procedure Code § 703.520(b) The claim of exemption shall be executed under oath and shall include all of the following:
(1)CA Civil Procedure Code § 703.520(b)(1) The name of the claimant and the mailing address where service of a notice of opposition to the claim may be made upon the claimant.
(2)CA Civil Procedure Code § 703.520(b)(2) The name and last known address of the judgment debtor if the claimant is not the judgment debtor.
(3)CA Civil Procedure Code § 703.520(b)(3) A description of the property claimed to be exempt. If an exemption is claimed pursuant to Section 704.010 or 704.060, the claimant shall describe all other property of the same type, including exempt proceeds of the property of the same type, owned by the judgment debtor alone or in combination with others on the date of levy and identify the property, whether or not levied upon, to which the exemption is to be applied. If an exemption is claimed pursuant to subdivision (b) of Section 704.100, the claimant shall state the nature and amount of all other property of the same type owned by the judgment debtor or the spouse of the judgment debtor alone or in combination with others on the date of levy.
(4)CA Civil Procedure Code § 703.520(b)(4) A financial statement if required by Section 703.530.
(5)CA Civil Procedure Code § 703.520(b)(5) A citation of the provision of this chapter or other statute upon which the claim is based.
(6)CA Civil Procedure Code § 703.520(b)(6) A statement of the facts necessary to support the claim.
(c)CA Civil Procedure Code § 703.520(c) This section shall become operative on September 1, 2020.
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Section § 703.530

Explanation

This section of the law talks about what you need to do if you're trying to protect certain property from being taken to pay a debt because it's needed to support you and your family. Basically, you have to fill out a detailed financial statement. This document should include the name of your spouse, details about any dependents, where and how much money everyone in your immediate family makes, what assets you and your family own and how much they're worth, as well as any debts you owe. Also, you have to swear that everything in this statement is true, and your spouse has to do it too unless you're living apart.

(a)CA Civil Procedure Code § 703.530(a) If property is claimed as exempt pursuant to a provision exempting property to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor, the claim of exemption shall include a financial statement.
(b)CA Civil Procedure Code § 703.530(b) The financial statement shall include all of the following information:
(1)CA Civil Procedure Code § 703.530(b)(1) The name of the spouse of the judgment debtor.
(2)CA Civil Procedure Code § 703.530(b)(2) The name, age, and relationship of all persons dependent upon the judgment debtor or the spouse of the judgment debtor for support.
(3)CA Civil Procedure Code § 703.530(b)(3) All sources and the amounts of earnings and other income of the judgment debtor and the spouse and dependents of the judgment debtor.
(4)CA Civil Procedure Code § 703.530(b)(4) A list of the assets of the judgment debtor and the spouse and dependents of the judgment debtor and the value of such assets.
(5)CA Civil Procedure Code § 703.530(b)(5) All outstanding obligations of the judgment debtor and the spouse and dependents of the judgment debtor.
(c)CA Civil Procedure Code § 703.530(c) The financial statement shall be executed under oath by the judgment debtor and, unless the spouses are living separate and apart, by the spouse of the judgment debtor.
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Section § 703.540

Explanation

When someone files a claim saying their property shouldn't be taken to pay a debt, the officer handling the process must let the person owed money know quickly. The officer sends them a copy of the exemption claim plus a notice. The notice states that if the person owed money doesn't file a notice to oppose this claim and a motion to have a court decide on it within a specified time, the property will be released back to the person who claimed the exemption.

Promptly after the filing of the claim of exemption, the levying officer shall serve both of the following on the judgment creditor personally or by mail:
(a)CA Civil Procedure Code § 703.540(a) A copy of the claim of exemption.
(b)CA Civil Procedure Code § 703.540(b) A notice of claim of exemption stating that the claim of exemption has been made and that the levying officer will release the property unless, within the time allowed as specified in the notice, both of the following are filed with the levying officer:
(1)CA Civil Procedure Code § 703.540(b)(1) A copy of the notice of opposition to the claim of exemption.
(2)CA Civil Procedure Code § 703.540(b)(2) A copy of the notice of motion for an order determining the claim of exemption.
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Section § 703.550

Explanation

If someone claims certain property should be exempt from being taken to pay a debt, the person who is owed money has 15 days to disagree and tell the court. They must file papers with both the court and the officer handling the case. If they don't do this in time, the officer must release the property claimed to be exempt. This rule started on September 1, 2020.

(a)CA Civil Procedure Code § 703.550(a) Within 15 days after service of the notice of claim of exemption, a judgment creditor who opposes the claim of exemption shall file with the court a notice of opposition to the claim of exemption and a notice of motion for an order determining the claim of exemption and shall file with the levying officer a copy of the notice of opposition and a copy of the notice of motion. Upon the filing of the copies of the notice of opposition and notice of motion, the levying officer shall promptly file the claim of exemption with the court. If copies of the notice of opposition and notice of motion are not filed with the levying officer within the time allowed, the levying officer shall immediately release the property to the extent it is claimed to be exempt.
(b)CA Civil Procedure Code § 703.550(b) This section shall become operative on September 1, 2020.
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Section § 703.560

Explanation

If someone wants to challenge a claim that property is exempt from being taken to pay a debt, they must do so officially and under oath. They need to explain why they think the property isn't legally exempt or has more value than the exemption allows. Additionally, they must provide the facts that back up their reasons.

The notice of opposition to the claim of exemption shall be executed under oath and shall include both of the following:
(a)CA Civil Procedure Code § 703.560(a) An allegation either (1) that the property is not exempt under the provision of this chapter or other statute relied upon or (2) that the equity in the property claimed to be exempt is in excess of the amount provided in the applicable exemption.
(b)CA Civil Procedure Code § 703.560(b) A statement of the facts necessary to support the allegation.
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Section § 703.570

Explanation
If someone files a motion related to exempting certain properties from being seized to pay off a debt judgment, the court must hold a hearing within 30 days. If there's a delay and the debt is personal, the court can temporarily stop the property from being taken until the hearing happens. Before the hearing, the person owed money must inform everyone involved, at least 10 days in advance, about the hearing and any objections to the property exemption.
(a)CA Civil Procedure Code § 703.570(a) The hearing on the motion shall be held not later than 30 days from the date the notice of motion was filed with the court unless continued by the court for good cause. Where the judgment upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, if the hearing is delayed by the court and cannot be set within 30 days of notice of the motion, a party may seek by ex parte application, and the court shall issue, an order staying any levy or garnishment with respect to the property subject to the claim of exemption until the hearing occurs.
(b)CA Civil Procedure Code § 703.570(b) Not less than 10 days prior to the hearing, the judgment creditor shall serve a notice of the hearing and a copy of the notice of opposition to the claim of exemption on the claimant and on the judgment debtor, if other than the claimant. Service shall be made personally or by mail.
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Section § 703.580

Explanation

This law explains how claims of exemption work when someone says their property shouldn't be taken to pay a debt. A court can only focus on whether the exemption claim is valid and the person claiming the exemption must prove it. If there’s an objection to the exemption, both that and the exemption claim count as evidence. The court might continue the hearing if more proof is needed. In the end, the court will decide if the property is exempt and either allow the creditor to use it to pay the debt or return it to the debtor. If the property was taken wrongfully, the debtor gets it back within a set time frame. The court clerk and officers handle the property based on the court’s decision, and if there's a delay in deciding about the exemption, the property should be returned.

(a)CA Civil Procedure Code § 703.580(a) The claim of exemption and notice of opposition to the claim of exemption do not constitute an appearance pursuant to Section 1014. The power of the court over the exemption claimant is limited to determining the claim of exemption.
(b)CA Civil Procedure Code § 703.580(b) At a hearing under this section, the exemption claimant has the burden of proof.
(c)CA Civil Procedure Code § 703.580(c) The claim of exemption is deemed controverted by the notice of opposition to the claim of exemption and both shall be received in evidence. If no other evidence is offered, the court, if satisfied that sufficient facts are shown by the claim of exemption (including the financial statement if one is required) and the notice of opposition, may make its determination thereon. If a claim of exemption asserts that money in a judgment debtor’s deposit account is or was necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor as provided in Section 704.225, the court shall review the judgment debtor’s financial statement and make findings thereon. If not satisfied, the court may order the hearing continued for the production of other evidence, oral or documentary.
(d)CA Civil Procedure Code § 703.580(d) At the conclusion of the hearing, the court shall determine by order whether or not the property is exempt in whole or in part.
(1)CA Civil Procedure Code § 703.580(d)(1) Subject to Section 703.600, the order is determinative of the right of the judgment creditor to apply the property to the satisfaction of the judgment.
(2)CA Civil Procedure Code § 703.580(d)(2) Where the judgment upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, the court shall order the return of any property that was exempt without the need for a claim and that was levied upon within the 12 months preceding the date of the order on the claim of exemption. This paragraph does not limit a judge’s authority to order, for good cause, the return of any exempt property taken more than 12 months preceding the date of the order on the claim of exemption.
(3)CA Civil Procedure Code § 703.580(d)(3) Where the judgment upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, the court shall order the return of any property that the debtor has demonstrated would have been exempt by claim of exemption and that was levied upon within the six months preceding the date of the order on the claim of exemption. This paragraph does not limit a judge’s authority to order, for good cause, the return of any exempt property taken more than six months preceding the date of the order on the claim of exemption.
(4)CA Civil Procedure Code § 703.580(d)(4) If property is exempt without the need for a claim under this title or as a result of a claim of exemption, the court shall order the return of the exempt property from the levying officer, judgment creditor, or other person who is in possession of the property, to the judgment debtor. A levying officer shall return the exempt property within 20 business days of receipt of notice of the order. A judgment creditor shall return the exempt property within 10 business days of entry of the order.
(e)CA Civil Procedure Code § 703.580(e) The court clerk shall promptly transmit a certified copy of the order to the levying officer. Subject to Section 703.610, the levying officer shall, in compliance with the order, release the property or apply the property to the satisfaction of the money judgment.
(f)CA Civil Procedure Code § 703.580(f) Unless otherwise ordered by the court, if an exemption is not determined within the time provided by Section 703.570, the property claimed to be exempt shall be released.
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Section § 703.590

Explanation

If a court gives someone more time to do something under this rule, they have to file a notice with the officer handling collection. Unless the other side agrees to skip it, they need to let them know about the extension, either in person or by mail.

If the court extends the time allowed for an act to be done under this article, written notice of the extension shall be filed with the levying officer and, unless notice is waived, shall be served promptly on the opposing party. Service shall be made personally or by mail.
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Section § 703.600

Explanation

This law means that if a court makes any decision based on this article, you can challenge that decision by appealing it to a higher court.

An appeal lies from any order made under this article.
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Section § 703.610

Explanation

This section deals with handling property when someone claims it should be exempt from being taken or sold to satisfy a debt. First, the property can't be sold or given up until it's clear if the exemption is allowed or if the decision is being appealed. A court can issue orders about what to do with the property during this time, but they can't give the property to the creditor if it would be exempt without needing to claim it. If there's an appeal about the exemption, everyone involved, like the officer holding the property and the debtor’s employer, must be told. In the case of wage garnishment, the employer has to stop garnishing wages during the appeal unless the court orders otherwise.

(a)CA Civil Procedure Code § 703.610(a) Except as otherwise provided by statute or ordered by the court, the levying officer shall not release, sell, or otherwise dispose of the property for which an exemption is claimed until an appeal is waived, the time to file an appeal has expired, or the exemption is finally determined.
(b)CA Civil Procedure Code § 703.610(b) At any time while the exemption proceedings are pending, upon motion of the judgment creditor or a claimant, or upon its own motion, the court may make any orders for disposition of the property that may be proper under the circumstances of the case, except that such order may not require the release to the judgment creditor of property that would be exempt without a claim of exemption. The order may be modified or vacated by the court at any time during the pendency of the exemption proceedings upon any terms that are just, except that such order may not require the release to the judgment creditor of property that would be exempt without a claim of exemption.
(c)CA Civil Procedure Code § 703.610(c) If an appeal of the determination of a claim of exemption is taken, notice of the appeal shall be given to the levying officer and the levying officer shall hold, release, or dispose of the property in accordance with the provisions governing enforcement and stay of enforcement of money judgments pending appeal. Where the judgment upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, if an earnings withholding order has been served upon the judgment debtor’s employer, notice of the appeal shall also be given to the judgment debtor’s employer who shall, upon receipt of the notice, immediately suspend any further garnishment of the judgment debtor’s wages for the pendency of the appeal and until ordered by the court to resume garnishment.
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