California has **two** exemption systems—often called **System 1** (CCP § 704) and **System 2** (CCP § 703.140). Debtors who file for bankruptcy in California must **choose one set** of exemptions for the duration of their case; you **cannot** mix and match. Generally, **System 1** (often known as 704) is more favorable for homeowners with substantial equity, while **System 2** (often known as 703.140) provides a so-called “wildcard” exemption that can be used for various assets.
**Important**: You may also be able to use certain **federal exemptions** in addition to these California-specific ones, but only if your particular situation allows (e.g., some retirement accounts or Social Security benefits are protected under federal law). Always confirm with an attorney or official code to ensure you’re maximizing your protection.
Sometimes called the “homeowner” set, **System 1** is found in CCP §§ 704.010 - 704.210. These exemptions typically protect more home equity but provide less flexibility for other property.
| Asset | Description / Amount | Code Section | Notes |
|---|---|---|---|
| Homestead | Real/personal property you occupy (house, condo, mobile home, boat, etc.) up to:
| CCP §§ 704.710, 704.720, 704.730 | Not doubled for spouses. *In re McFall, 112 B.R. 336 (9th Cir. B.A.P. 1990)* |
| Household Goods / Appliances / Clothing | Necessary household items fully exempt. | CCP § 704.020 | |
| Bank Deposits (Social Security) | Up to \$2,000 (\$3,000 for spouses) in deposits traceable to Social Security. | CCP § 704.080 | |
| Building Materials | Up to \$2,000 if used to repair or improve home. | CCP § 704.030 | Not doubled for spouses. |
| Burial Plot | Fully exempt. | CCP § 704.200 | |
| Health Aids | Fully exempt for debtor or dependents. | CCP § 704.050 | |
| Jewelry, Heirlooms, Art | Up to \$5,000 total value. | CCP § 704.040 | Not doubled for spouses. |
| Motor Vehicle | Up to \$1,900 equity. | CCP § 704.010 | Spouses cannot each claim \$1,900 on the same vehicle. |
| Personal Injury / Wrongful Death Actions | Causes of action are exempt. | CCP §§ 704.140(a), 704.150(a) | |
| Personal Injury / Wrongful Death Recoveries | Needed for support; if installments, at least 75% exempt. | CCP §§ 704.140(b)-(d), 704.150(b)-(c) | |
| Disability / Health Benefits | Fully exempt. | CCP § 704.130 | |
| Fidelity Bonds | Exempt. | Lab. Code § 404 | |
| Homeowner's Insurance Proceeds | Protected for 6 months up to homestead amount. | CCP § 704.720(b) | |
| Life Insurance Proceeds | If policy prohibits paying beneficiary’s creditors; also matured benefits needed for support. | Ins. Code §§ 10132, 10170, 10171; CCP § 704.100(c) | |
| Unmatured Life Insurance (Loan Value) | Up to \$8,000. | CCP § 704.100(b) | Spouses may double in some cases. |
| Business / Professional Licenses | Non-exempt per CCP § 695.060. | CCP § 695.060 | |
| Inmates’ Trust Fund | Up to \$1,000 total. | CCP § 704.090 | Not doubled for spouses. |
| Property of Business Partnership | Exempt from individual partner’s creditors. | Corp. Code § 15025 | |
| County Employees | Fully exempt retirement benefits. | Gov’t Code § 31452 | |
| County Firefighters | Fully exempt benefits. | Gov’t Code § 32210 | |
| County Peace Officers | Fully exempt benefits. | Gov’t Code § 31913 | |
| Private Retirement Plans / IRAs / Keoghs | Fully exempt. | CCP § 704.115 | |
| Public Employees / Public Retirement | Fully exempt. | Gov’t Code § 21201; CCP § 704.110 | |
| Aid to Blind, Aged, Disabled, AFDC | Fully exempt. | CCP § 704.170 | |
| Financial Aid to Students | Fully exempt. | CCP § 704.190 | |
| Relocation Benefits | Fully exempt. | CCP § 704.180 | |
| Unemployment Benefits | Fully exempt. | CCP § 704.120 | |
| Union Benefits (Labor Dispute) | Fully exempt. | CCP § 704.120(b)(5) | |
| Workers’ Compensation | Fully exempt. | CCP § 704.160 | |
| Tools of Trade | Up to \$5,000 total, or \$10,000 if used by spouses in same occupation. May include a vehicle if not using standard motor vehicle exemption. | CCP § 704.060 | |
| Wages | At least 75% exempt. | CCP § 704.070 | Some exceptions for child support. |
| Public Employees’ Vacation Credits | At least 75% exempt if received in installments. | CCP § 704.113 |
Often chosen by renters or those with less home equity, **System 2** (CCP § 703.140) includes a **wildcard** you can apply to any property. **Married couples typically cannot double** these (In re Talmadge, In re Baldwin).
| Asset | Description / Amount | Code Section | Notes |
|---|---|---|---|
| Homestead or Burial Plot | Up to **\$17,425**; unused portion can go to wildcard. | CCP § 703.140(b)(1) | |
| Animals, Appliances, Furnishings | Up to **\$450** per item. | CCP § 703.140(b)(3) | |
| Health Aids | Fully exempt. | CCP § 703.140(b)(9) | |
| Jewelry | Up to **\$1,150**. | CCP § 703.140(b)(4) | |
| Motor Vehicle | Up to **\$2,775** equity. | CCP § 703.140(b)(2) | |
| Personal Injury Recoveries | Up to **\$17,425**, excluding pain/suffering or pecuniary loss. | CCP § 703.140(b)(11)(D), (E) | |
| Wrongful Death Recoveries | Needed for support. | CCP § 703.140(b)(11)(B) | |
| Disability Benefits | Fully exempt. | CCP § 703.140(b)(10)(C) | |
| Life Insurance Proceeds Needed for Support | Fully exempt. | CCP § 703.140(b)(11)(C) | |
| Unmatured Life Insurance (Accrued Avails) | Up to **\$9,300**. | CCP § 703.140(b)(8) | |
| Unmatured Life Insurance Policy | Fully exempt (excluding credit life insurance). | CCP § 703.140(b)(7) | |
| Alimony, Child Support | Exempt to extent needed for support. | CCP § 703.140(b)(10)(D) | |
| ERISA-Qualified Retirement Benefits | Exempt to extent needed for support. | CCP § 703.140(b)(10)(E) | |
| Crime Victims’ Compensation | Fully exempt. | CCP § 703.140(b)(11)(A) | |
| Public Assistance, Social Security, Unemployment, Veterans | Fully exempt (CCP § 703.140(b)(10)(A)(B)). | CCP § 703.140(b)(10)(A), (B) | |
| Implements, Books, Tools of Trade | Up to **\$1,750** total. | CCP § 703.140(b)(6) | |
| Wages | No specific wage exemption in System 2. | -- | Federal wage garnishment limits may apply. |
| Wildcard | **\$925** + any unused portion of homestead/burial (up to \$17,425). Potential max ~\$18,350 if minimal homestead used. | CCP § 703.140(b)(5) |
This resource is provided for informational purposes only and does not constitute legal advice. Exemption laws can change or be interpreted differently by courts. For personalized guidance, consult a qualified California bankruptcy attorney.