California State Bankruptcy Exemptions
§ 706.050. Amount of earnings exempt
Except as otherwise provided in this chapter, the amount of earnings of a
judgment debtor exempt from the levy of an earnings withholding order shall be
that amount that may not be withheld from the judgment debtor's earnings under
federal law in Section 1673(a) of Title 15 of the United States Code.
§ 706.051. Earnings necessary for support of judgment debtor or judgment debtor's
family
(a) For the purposes of this section, "family of the judgment debtor" includes
the spouse or former spouse of the judgment debtor.
(b) Except as provided in subdivision (c), the portion of the judgment debtor's
earnings which the judgment debtor proves is necessary for the support of the
judgment debtor or the judgment debtor's family supported in whole or in part
by the judgment debtor is exempt from levy under this chapter.
(c) The exemption provided in subdivision (b) is not available if any of the
following exceptions applies:
(1) The debt was incurred for the common necessaries of life furnished to the
judgment debtor or the family of the judgment debtor.
(2) The debt was incurred for personal services rendered by an employee or
former employee of the judgment debtor.
(3) The order is a withholding order for support under Section 706.030.
(4) The order is one governed by Article 4 (commencing with Section 706.070)
(state tax order).
§ 703.130. Exemptions in bankruptcy
Pursuant to the authority of paragraph (1) of subsection (b) of Section 522 of
Title 11 of the United States Code, the exemptions set forth in subsection (d)
of Section 522 of Title 11 of the United States Code (Bankruptcy) are not
authorized in this state.
§ 703.140. Election of exemptions if bankruptcy petition is filed
(a) In a case under Title 11 of the United States Code, all of the exemptions
provided by this chapter, including the homestead exemption, other than the
provisions of subdivision (b) are applicable regardless of whether there is a
money judgment against the debtor or whether a money judgment is being enforced
by execution sale or any other procedure, but the exemptions provided by
subdivision (b) may be elected in lieu of all other exemptions provided by this
chapter, as follows:
(1) If a husband and wife are joined in the petition, they jointly may elect to
utilize the applicable exemption provisions of this chapter other than the
provisions of subdivision (b), or to utilize the applicable exemptions set
forth in subdivision (b), but not both.
(2) If the petition is filed individually, and not jointly, for a husband or a
wife, the exemptions provided by this chapter other than the provisions of
subdivision (b) are applicable, except that, if both the husband and the wife
effectively waive in writing the right to claim, during the period the case
commenced by filing the petition is pending, the exemptions provided by the
applicable exemption provisions of this chapter, other than subdivision (b), in
any case commenced by filing a petition for either of them under Title 11 of
the United States Code, then they may elect to instead utilize the applicable
exemptions set forth in subdivision (b).
(3) If the petition is filed for an unmarried person, that person may elect to
utilize the applicable exemption provisions of this chapter other than
subdivision (b), or to utilize the applicable exemptions set forth in
subdivision (b), but not both.
(b) The following exemptions may be elected as provided in subdivision (a):
(1) The debtor's aggregate interest, not to exceed seventeen thousand four
hundred twenty-five dollars ($ 17,425) in value, in real property or personal
property that the debtor or a dependent of the debtor uses as a residence, in a
cooperative that owns property that the debtor or a dependent of the debtor
uses as a residence, or in a burial plot for the debtor or a dependent of the
debtor.
(2) The debtor's interest, not to exceed two thousand seven hundred seventy-five
dollars ($ 2,775) in value, in one motor vehicle.
(3) The debtor's interest, not to exceed four hundred fifty dollars ($ 450) in
value in any particular item, in household furnishings, household goods,
wearing apparel, appliances, books, animals, crops, or musical instruments,
that are held primarily for the personal, family, or household use of the
debtor or a dependent of the debtor.
(4) The debtor's aggregate interest, not to exceed one thousand one hundred
fifty dollars ($ 1,150) in value, in jewelry held primarily for the personal,
family, or household use of the debtor or a dependent of the debtor.
(5) The debtor's aggregate interest, not to exceed in value nine hundred
twenty-five dollars ($ 925) plus any unused amount of the exemption provided
under paragraph (1), in any property.
(6) The debtor's aggregate interest, not to exceed one thousand seven hundred
fifty dollars ($ 1,750) in value, in any implements, professional books, or
tools of the trade of the debtor or the trade of a dependent of the debtor.
(7) Any unmatured life insurance contract owned by the debtor, other than a
credit life insurance contract.
(8) The debtor's aggregate interest, not to exceed in value nine thousand three
hundred dollars ($ 9,300), in any accrued dividend or interest under, or loan
value of, any unmatured life insurance contract owned by the debtor under which
the insured is the debtor or an individual of whom the debtor is a dependent.
(9) Professionally prescribed health aids for the debtor or a dependent of the
debtor.
(10) The debtor's right to receive any of the following:
(A) A social security benefit, unemployment compensation, or a local public
assistance benefit.
(B) A veterans' benefit.
(C) A disability, illness, or unemployment benefit.
(D) Alimony, support, or separate maintenance, to the extent reasonably
necessary for the support of the debtor and any dependent of the debtor.
(E) A payment under a stock bonus, pension, profit-sharing, annuity, or similar
plan or contract on account of illness, disability, death, age, or length of
service, to the extent reasonably necessary for the support of the debtor and
any dependent of the debtor, unless all of the following apply:
(i) That plan or contract was established by or under the auspices of an insider
that employed the debtor at the time the debtor's rights under the plan or
contract arose.
(ii) The payment is on account of age or length of service.
(iii) That plan or contract does not qualify under Section 401(a), 403(a),
403(b), 408, or 408A of the Internal Revenue Code of 1986.
(11) The debtor's right to receive, or property that is traceable to, any of the
following:
(A) An award under a crime victim's reparation law.
(B) A payment on account of the wrongful death of an individual of whom the
debtor was a dependent, to the extent reasonably necessary for the support of
the debtor and any dependent of the debtor.
(C) A payment under a life insurance contract that insured the life of an
individual of whom the debtor was a dependent on the date of that individual's
death, to the extent reasonably necessary for the support of the debtor and any
dependent of the debtor.
(D) A payment, not to exceed seventeen thousand four hundred twenty-five dollars
($ 17,425), on account of personal bodily injury, not including pain and
suffering or compensation for actual pecuniary loss, of the debtor or an
individual of whom the debtor is a dependent.
(E) A payment in compensation of loss of future earnings of the debtor or an
individual of whom the debtor is or was a dependent, to the extent reasonably
necessary for the support of the debtor and any dependent of the debtor.
§ 704.730. Amount of homestead exemption
(a) The amount of the homestead exemption is one of the following:
(1) Fifty thousand dollars ($ 50,000) unless the judgment debtor or spouse of
the judgment debtor who resides in the homestead is a person described in
paragraph (2) or (3).
(2) Seventy-five thousand dollars ($ 75,000) if the judgment debtor or spouse of
the judgment debtor who resides in the homestead is at the time of the
attempted sale of the homestead a member of a family unit, and there is at
least one member of the family unit who owns no interest in the homestead or
whose only interest in the homestead is a community property interest with the
judgment debtor.
(3) One hundred fifty thousand dollars ($ 150,000) if the judgment debtor or
spouse of the judgment debtor who resides in the homestead is at the time of
the attempted sale of the homestead any one of the following:
(A) A person 65 years of age or older.
(B) A person physically or mentally disabled and as a result of that disability
is unable to engage in substantial gainful employment. There is a rebuttable
presumption affecting the burden of proof that a person receiving disability
insurance benefit payments under Title II or supplemental security income
payments under Title XVI of the federal Social Security Act satisfies the
requirements of this paragraph as to his or her inability to engage in
substantial gainful employment.
(C) A person 55 years of age or older with a gross annual income of not more
than fifteen thousand dollars ($ 15,000) or, if the judgment debtor is married,
a gross annual income, including the gross annual income of the judgment
debtor's spouse, of not more than twenty thousand dollars ($ 20,000) and the
sale is an involuntary sale.
(b) Notwithstanding any other provision of this section, the combined homestead
exemptions of spouses on the same judgment shall not exceed the amount
specified in paragraph (2) or (3), whichever is applicable, of subdivision (a),
regardless of whether the spouses are jointly obligated on the judgment and
regardless of whether the homestead consists of community or separate property
or both. Notwithstanding any other provision of this article, if both spouses
are entitled to a homestead exemption, the exemption of proceeds of the
homestead shall be apportioned between the spouses on the basis of their
proportionate interests in the homestead.
§ 704.010. Motor vehicles
(a) Any combination of the following is exempt in the amount of two thousand
three hundred dollars ($ 2,300):
(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
two thousand three hundred dollars ($ 2,300) 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.
§ 704.020. Household furnishings and personal effects
(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.
§ 704.030. Materials for repair or improvement of residence
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 two
thousand four hundred twenty-five dollars ($ 2,425) 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.
§ 704.040. Jewelry, heirlooms, works of art
Jewelry, heirlooms, and works of art are exempt to the extent that the
aggregate equity therein does not exceed six thousand seventy-five dollars ($
6,075).
§ 704.050. Health aids
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.
§ 704.060. Personal property used in trade, business, or profession
(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) Six thousand seventy-five dollars ($ 6,075), 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) Six thousand seventy-five dollars ($ 6,075), 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.
§ 704.070. Paid earnings
(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) Seventy-five percent of the paid earnings 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.
§ 704.080. Deposit account in which public benefits or social security benefits
are directly deposited
(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 two hundred twenty-five dollars ($ 1,225) where one depositor
is the designated payee of the directly deposited public benefits payments.
(2) Two thousand four hundred twenty-five dollars ($ 2,425) where one depositor
is the designated payee of directly deposited social security payments.
(3)One thousand eight hundred twenty-five dollars ($ 1,825) 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
theexemption under paragraph (1) applies.
(4) Three thousand six hundred fifty dollars ($ 3,650) 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).
§ 704.090. Inmate's trust account
(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 two hundred twenty-five dollars ($ 1,225). 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 dollars
($ 300) without making a claim. The exemption provided in this subdivision is
not subject to adjustment under Section 703.150.
§ 704.100. Life insurance policies
(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 nine thousand seven hundred dollars ($
9,700). 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.
§ 704.110. Public retirement and related benefits and contributions
(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.
§ 704.113. Public employee vacation credits
(a) As used in this section, "vacation credits" means vacation credits
accumulated by a state employee pursuant to Section 18050 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) All vacation credits are exempt without making a claim.
(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.
§ 704.115. Private retirement and related benefits and contributions
(a) As used in this section, "private 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.
(b) All amounts held, controlled, or in process of distribution by a private
retirement plan, for the payment of benefits as an annuity, pension, retirement
allowance, disability payment, or death benefit from a private 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 private
retirement plan are exempt.
(e) Notwithstanding subdivisions (b) and (d), except as provided in subdivision
(f), the amounts described in paragraph (3) 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. 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 payable as a result of the applying of
an amount described in paragraph (3) of subdivision (a) to the satisfaction of
the money judgment.
(f) Where the amounts described in paragraph (3) 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.
§ 704.120. Unemployment benefits and contributions; Strike benefits
(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.
§ 704.130. Disability and health benefits
(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.
§ 704.140. Damages for personal injury
(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).
§ 704.150. Damages for wrongful death
(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).
§ 704.160. Workers' compensation; Exceptions
(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.
§ 704.170. Aid provided to needy persons
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.
§ 704.180. Relocation benefits
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.
§ 704.190. Financial aid provided to student by educational institution
(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.
§ 704.200. Cemetery plot
(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.
Note: Exemptions may have changed since our last update.
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