California adjusts most exemption figures every three years to keep pace with inflation, so relying on outdated numbers can cost you real money—or even your house. Choosing between System 1 (CCP § 704) andSystem 2 (CCP § 703.140) requires an exact understanding of today’s dollar limits, not last year’s. For instance, the statewide homestead floor climbed to $361,076 on April 1 2025 and will rise again in 2028. If you file using an older figure, the trustee may argue you have unprotected equity, exposing your property to sale or forcing you into a costlier chapter 13 plan. By starting with the correct 2025 tables, you can avoid objections, streamline the 341 meeting, and move faster toward a discharge.
The wildcard under System 2 is tiny on paper—$1,950—but it can balloon to $38,700 when you tack on the unused portion of the System 2 homestead. That makes it a secret weapon for filers who do not own real estate or hold minimal equity. Use it to protect vulnerable assets such as:
A seasoned attorney can help you layer exemptions—for example, shielding $8,625 of vehicle equity under § 703.140(b)(2) and applying wildcard dollars to the remainder—so you keep the car that gets you to work.
Because California’s CPI adjustments take effect every April 1, the month you file can matter as much as the system you choose. Suppose your home equity is hovering near last year’s cap; delaying a few weeks into the new adjustment period could bump the ceiling enough to cover the excess. The reverse is also true: racing the calendar can preserve older, more favorable figures if inflation drives the cap down—rare, but not impossible in a deflationary cycle. Coordinating with your lawyer and monitoring county median‑sale data will ensure you file in the sweet spot.
Accurate exemption planning is the backbone of a smooth bankruptcy. After you verify the 2025 figures above, take a complete inventory of your assets, pull a recent tri‑merge credit report, and schedule a consultation. Our California‑licensed attorneys scrutinize every line of your schedules to flag red‑letter issues—preferential transfers, recent luxury purchases, or undisclosed crypto wallets—that could invite trustee scrutiny. Ready to safeguard your property and rebuild your financial life? Visit ourfree consultation page or explore more detailed guides onchapter 7 andchapter 13 bankruptcy in California. With the right strategy, 2025 can be the year you press reset and move forward debt‑free.
California offers two distinct exemption schemes— System 1 (CCP § 704) and System 2 (CCP § 703.140). If you file chapter 7 or chapter 13, you must pick one system for the entire case—mixing is not allowed. Generally, System 1 favors homeowners with equity, while System 2 is popular with renters because of its generous wildcard. The tables below show the current 2025 figures.
Homestead (CCP § 704.730): the greater of (a) the county‐wide median single-family home price for the prior calendar year or (b) the $361,076 statewide floor; capped at $722,507 (2025 inflation figures). Sale proceeds remain exempt for six months.
| Asset / Category | 2025 Amount | Code | Key Notes |
|---|---|---|---|
| Motor vehicle equity | $8,625 | § 704.010 | Applies to aggregate equity or insurance proceeds. |
| Household goods & appliances | Fully exempt if reasonably necessary | § 704.020 | |
| Deposit accounts (public / SS) | Public benefits $2,175 (single) / $3,250 (joint) Social Security $4,400 (single) / $6,575 (joint) | § 704.080 | Direct-deposit traceable funds; general automatic exemption § 704.220 is $2,170. |
| Building materials for homestead | $4,400 | § 704.030 | |
| Jewelry, heirlooms, art | $10,950 total | § 704.040 | |
| Health aids | Fully exempt | § 704.050 | |
| Tools of trade | $10,950 (single) / $21,900 (both spouses) | § 704.060 | Can include a vehicle used in the trade (caps apply). |
| Unmatured life-insurance loan value | $17,525 | § 704.100(b) | |
| Inmate trust account | $2,175 | § 704.090 | |
| Public-employee vacation / leave credits | $8,625 (75 % if paid in installments) | § 704.113 |
Favoured by renters and filers without significant home equity. Figures below are the April 1 2025 CPI-adjusted amounts.
| Asset / Category | 2025 Amount | Code | Key Notes |
|---|---|---|---|
| Homestead / burial-plot equity | $36,750 | § 703.140(b)(1) | Unused portion rolls into wildcard. |
| Motor vehicle equity | $8,625 | § 703.140(b)(2) | |
| Household goods (per item) | $925 | § 703.140(b)(3) | |
| Jewelry | $2,175 | § 703.140(b)(4) | |
| Wildcard | $1,950 + unused homestead amount → up to $38,700 | § 703.140(b)(5) | Can be applied to any property. |
| Tools of trade | $10,950 | § 703.140(b)(6) | |
| Unmatured life-insurance cash value | $19,625 | § 703.140(b)(8) | |
| Health aids | Fully exempt | § 703.140(b)(9) | |
| Disability & public-benefit payments | Fully exempt | § 703.140(b)(10) | |
| Personal-injury recovery | $36,750 | § 703.140(b)(11)(E) | |
| Wrongful-death recovery | Needed for support (no cap) | § 703.140(b)(11)(B) |
Joint filers generally cannot double these System 2 exemptions. Review recent Ninth-Circuit cases (In re Talmadge,In re Baldwin) when planning a joint case.
California adjusts most exemption figures every three years to keep pace with inflation, so relying on outdated numbers can cost you real money—or even your house. Choosing between System 1 (CCP § 704) andSystem 2 (CCP § 703.140) requires an exact understanding of today’s dollar limits, not last year’s. For instance, the statewide homestead floor climbed to $361,076 on April 1 2025 and will rise again in 2028. If you file using an older figure, the trustee may argue you have unprotected equity, exposing your property to sale or forcing you into a costlier chapter 13 plan. By starting with the correct 2025 tables, you can avoid objections, streamline the 341 meeting, and move faster toward a discharge.
The wildcard under System 2 is tiny on paper—$1,950—but it can balloon to $38,700 when you tack on the unused portion of the System 2 homestead. That makes it a secret weapon for filers who do not own real estate or hold minimal equity. Use it to protect vulnerable assets such as:
A seasoned attorney can help you layer exemptions—for example, shielding $8,625 of vehicle equity under § 703.140(b)(2) and applying wildcard dollars to the remainder—so you keep the car that gets you to work.
Because California’s CPI adjustments take effect every April 1, the month you file can matter as much as the system you choose. Suppose your home equity is hovering near last year’s cap; delaying a few weeks into the new adjustment period could bump the ceiling enough to cover the excess. The reverse is also true: racing the calendar can preserve older, more favorable figures if inflation drives the cap down—rare, but not impossible in a deflationary cycle. Coordinating with your lawyer and monitoring county median‑sale data will ensure you file in the sweet spot.
Accurate exemption planning is the backbone of a smooth bankruptcy. After you verify the 2025 figures above, take a complete inventory of your assets, pull a recent tri‑merge credit report, and schedule a consultation. Our California‑licensed attorneys scrutinize every line of your schedules to flag red‑letter issues—preferential transfers, recent luxury purchases, or undisclosed crypto wallets—that could invite trustee scrutiny. Ready to safeguard your property and rebuild your financial life? Visit our free consultation page or explore more detailed guides on chapter 7 and chapter 13 bankruptcy in California. With the right strategy, 2025 can be the year you press reset and move forward debt‑free.
• Judicial Council of California, Form EJ-156 (rev. Apr 1 2025) – current dollar amounts for CCP §§ 703.140 (b) & 704.010 et seq.
This chart is informational only. Exemptions are applied on a case-by-case basis and may change. Consult a qualified California bankruptcy attorney for advice.