California Laws on Wage Garnishments, Statute of Limitation on Debt, and Bankruptcy Property Exemption

California Laws on Wage Garnishments, Statute of Limitation on Debt, and Bankruptcy Property Exemptions

WAGE GARNISHMENT EXEMPTION: The State of California does not provide a wage garnishment amount. Federal law applies.

MAXIMUM INTEREST RATE: Legal: 10% Judgment: 10% or contract rate

STATUTE OF LIMITATIONS FOR ENFORCEMENT:

Open Account (credit card): 4 years (2 yeas if not in writing)

Written Contract: 4 years

Domestic Judgment: 10 years (can be renewed at 10 years)

Foreign Judgment: 10 years

BAD CHECK LAW DAMAGES

Amount owed plus treble (3 times) damages [minimum $100 and maximum $1500]

CALIFORNIA PROPERTY EXEMPTIONS IN BANKRUPTCY

(California Code of Civil Procedure) You cannot use the federal exemptions, but you can use the federal non-bankruptcy exemptions. California is the only state with two options [pick the one that allows you to keep the most property. Option 2 is on the next page] --

California -- Option 1:

Real estate: Real property, mobile home, co-op, or condo to $50,000 if single and not disabled; $75,000 for families if no other member has a homestead; up to $125,000 if 65 or older or disabled or $100,000 if 55 or older, single and earn under $15,000 and creditors trying to force the sale of your home; or 55 or older, married, earning less than $20,000 and creditors trying to force the sale of your home; proceeds from sale of home are exempt for six months [704.710, 704.720 and 704.730]

Personal property: Furnishings, clothing, appliances and food (amount needed) [704.020]; bank deposits from social security to $2,000 ($3,000 if married) [704.080]; building materials for home improvement up to $2,000 [704.030]; jewelry, heirlooms and art up to $5,000 total [704.040]; motor vehicles or auto insurance proceeds on vehicle to $1,900 [704.010]; personal injury claims or recoveries, amount needed for support [704.140]; wrongful death causes of action or recovery, amount needed for support [704.140]; books, equipment, furnishings, materials, motor vehicle (if not claimed otherwise), tools, uniforms, and vessel up to $5,000 total (married couples may double to $10,000) [704.060]

Insurance / Annuities: Disability or health benefits, unlimited amount [704.130]; life insurance proceeds if policy prohibits proceeds from being used to pay creditors, unlimited amount [Insurance 1017]; fidelity bonds, unlimited amount [Labor 404]; matured life insurance benefits, amount needed for support [704.100(c); fraternal unemployment benefits, unlimited amount [704.120]; homeowner's insurance proceeds up to six months after receipt and up to real estate exemption amount [704.720(b)]; unmatured life insurance policy loan value up to $8,000 if single, married couples can double [704.100(b)]

Pensions / Retirement Plans: Public and Private retirement benefits, IRAs & Keoghs, unlimited amount [704.110, 704.115]; public employees, public retirement benefits [Government 21201]; county employees, firefighters, police officers, unlimited amount [Government 31452, 31913 and 32210]

Public Benefits / Entitlements: Union benefits due to labor dispute, unlimited amount [704.120(b)(5)]; workers' compensation, unlimited amount [704.160]; aid to blind, aged, disabled, and families with dependent children, unlimited amount [704.170]; financial aid to students, unlimited amount [704.180]; unemployment benefits, unlimited amount [704.120]; relocation benefits, unlimited amount [704.180]

Wages: Public employees vacation credits, unlimited amount [704.1113]; 75% of paid wages within 30 days of filing bankruptcy [704.070]

Miscellaneous: Business or professional licenses, except liquor licenses, unlimited amount [695.060 and 708.630]; inmates' trust funds up to $1,000 [704.090]; business partnership property, unlimited amount [Corporations 15025]

Option 2 exemptions:

Real Estate: Real property, co-op and/or burial plot of debtor or a dependent to $15,000; unused exemption may be applied to any property [703.140(b)(1)]

Personal property: Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing up to $400 per item [703.140(b)(3)]; implements, books and tools of trade up to $1,500 [703.140(b)(6)]; health aids, unlimited amount [703.140(b)(9)]; jewelry to $1,000 total [703.140(b)(4)]; motor vehicle to $2,400 [703.140(b)(2); personal injury recoveries to $15,000 (not pain or suffering or pecuniary loss) [703.140(b)(11)(D) and (E), wrongful death recoveries, amount needed for support [703.140(b)(11)(B)]; burial plot up to $15,000 in lieu of real estate exemption [703.140(b)(1)]

Insurance / Annuities: Disability benefits, unlimited amount [703.140(b)(10)(C)]; fidelity bonds; life insurance proceeds, amount needed for support [703.140(b)(11)(C); unmatured life insurance policy with dividends or loan value up to $8,000 [703.140(b)(8)]; unmatured life insurance policy [703.140(b)(7)]

Pensions / Retirement Plans: Retirement benefits, amount needed for support [703.140(b)(10)(E)]

Public Benefits / Entitlements: Unemployment compensation, unlimited amount [703.140(b)(10)(A)]; veterans' benefits, unlimited amount [703.140(b)(10)(B)]; crime victims' compensation, unlimited amount [703.140(b)(11)(A)]; public assistance, unlimited amount [703.140(b)(10)(A)]; social security, unlimited amount [703.140(b)(10)(A)]

Wages: None

Miscellaneous: Any property up to $800 [703.140(b)(5)]; alimony and child support, amount needed for support [703.140(b)(10)(D)]; unused portion of real estate or burial exemption (can be used with any property) [703.140(b)(5)]

Debt > Statutes > California