California Bankruptcy Exemptions’ System 1
UPDATED: Oct 21, 2024
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UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Federal bankruptcy exemptions available? NO
California is the only state that has two sets of state exemptions. California System 1 is similar to other state exemptions. It allows a large homestead exemption and is therefore usually preferred by people who own their homes. System 2 is very like the federal exemptions in that it allows a debtor to use the homestead exemptions for other property instead of for a residence. In California, as in states that allow you to choose between the state and federal exemptions, you have to choose only one option. In other words, you can’t mix and match exemptions from the two systems.
The references to California statutes are to the California Code of Civil Procedure unless other code sections are specified. The amounts in this chart are not the same as the amounts in the statutes because these amounts are now updated every three years by the California Judicial Council.
Resources:
United States Bankruptcy Court, Eastern District of California
United States Bankruptcy Court, Northern District of California
United States Bankruptcy Court, Southern District of California
United States Bankruptcy Court, Central District of California
California Bankruptcy Attorneys
| California Bankruptcy Exemptions – System 1 | ||
|---|---|---|
| Assets | Exemption | State Statute |
| Homestead | Your residence, including land and buildings, and personal property such as a mobile home, boat, co-op, condo, or planned development: up to $75,000 for a single person who is not disabled. Up to $100,000 for a family if no other member of the family has a separate homestead. (A married person filing alone can exempt up to 1/2 of this amount if the property is community property, but the full amount if the property is held by the spouses as tenants in common.) Up to $175,000 for a debtor who is over 65 or physically or mentally disabled. Up to $175,000 for persons over 55 if single with an annual income of less than $15,000 or married with an annual income of less than $20,000 and creditors try to force sale of home. Proceeds received from a forced sale of home are exempt for 6 months after receipt. Spouses may not double these exemptions. | 704.710; 704.720; 704.730 |
| You have the option of filing a homestead declaration to protect your allowable exemption or proceeds of a voluntary sale (for a period of 6 months) from attachment or judicial liens. | 704.920 | |
| Insurance | Life insurance (unmatured): all cash surrender value and up to $9,700 of loan value. | 704.100(b) |
| Life insurance (matured): all benefits necessary for support. | 704.100(c) | |
| Unemployment benefits: all. | 704.120 | |
| Health or disability benefits: all. | 704.130 | |
| Fraternal benefit society benefits: all. | 704.170 | |
| Homeowners’ insurance proceeds: up to homestead exemption amount for 6 months after received. | 704.720(b) | |
| Fidelity bonds: all. | Labor 404 | |
| Life insurance payments: all if there is a clause prohibiting the proceeds from being used to pay creditors of the beneficiary. | Insurance 10132, 10170, 10171 | |
| Miscellaneous | Professional or business licenses: all. | 695.060 |
| Trust fund for inmate of prison or correctional facility: up to $1,225. (Married couple not allowed to double.) | 704.090 | |
| Property belonging to a business partnership. | Corporations 16501-04 | |
| Pensions | Federal pension exemptions (see federal exemptions). | |
| Public retirement benefits: all. | 704.110 | |
| Private retirement benefits, such as IRAs and Keoghs: all. | 704.115 | |
| Public employee pensions: all. | Government 21255 | |
| County employee pensions: all. | Government 31452 | |
| County peace officer pensions: all. | Government 31913 | |
| County firefighter pensions: all. | Government 32210 | |
| Personal Property | Motor vehicles: up to $2,300 in equity or the same amount in insurance payments for loss or damage. This amount applies to individuals and married couples. It may not be doubled. | 704.010 |
| Appliances, furnishings, clothing, and food: all. | 704.020 | |
| Building materials for repair or improvement: up to $2,425 for either a single person or a married couples. | 704.030 | |
| Art, heirlooms, and jewelry: up to $6,075 for single person or married couple. | 704.040 | |
| Health aids: all. | 704.050 | |
| Social Security bank deposits: up to $2,425 for a single person, $3,650 for a married couple. If the Social Security funds are not commingled with other funds: all. | 704.080 | |
| Other public benefit bank deposits: up to $1,225 for a single person, $1,825 for a married couple. | 704.080 | |
| Cause of action for personal injury or wrongful death: all. | 704.140(a); 704.150(a) | |
| Recoveries for personal injury or wrongful death: all needed for support | 704.140(b),(c),(d); 704.150(b),(c) | |
| Burial plot: all. | 704.200 | |
| Funds held in escrow: all. | Financial 17410 | |
| Public Benefits | Unemployment benefits: all. | 704.120 |
| Labor dispute benefits from union: all. | 704.120(b)(5) | |
| Worker’s compensation benefits: all. | 704.160 | |
| Public assistance benefits: all. | 704.170 | |
| Aid for disabled, blind, and aged: all. | 704.170 | |
| Relocation benefits: all. | 704.180 | |
| Student financial aid: all. | 704.190 | |
| Tools of Your Trade | Tools of trade, including uniforms, implements, instruments, books, furnishings, and equipment: up to $6,075. | 704.060 |
| Commercial vehicle as defined by the Vehicle Code §260: up to $4,850 for a single person. | 704.060 | |
| Wages | Wages paid to the debtor within 30 days of filing for bankruptcy: at least 75%. | 704.070 |
| Vacation credits for public employees. | 704.113 | |
| Wildcard | None. | |
Click here to read an Introduction to Bankruptcy Exemptions.
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Mary Martin
Published Legal Expert
Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.