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Bankruptcy Exemptions in California

What property you can keep in bankruptcy in California: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.

Short answer: California does not allow the federal bankruptcy exemptions. Instead, filers choose one of California's two systems: the regular exemptions in CCP 704.010 et seq. Cal. Code Civ. Proc. 703.130, 703.140(a)

State or federal exemptionsCalifornia does not allow the federal bankruptcy exemptions. Instead, filers choose one of California's two systems: the regular exemptions in CCP 704.010 et seq. (including the homestead), or the alternative list in CCP 703.140(b). Spouses filing together must pick the same system; a married person filing alone generally needs a written waiver from the spouse to use the 703.140(b) list.
Re-verified 2026-10-27.
Source: Cal. Code Civ. Proc. 703.130, 703.140(a)
Homestead exemptionRegular system: the greater of $300,000 or the countywide median sale price for a single-family home in the prior calendar year, capped at $600,000; both figures adjust annually for inflation beginning January 1, 2022. Alternative 703.140(b) system: $36,750 in a residence (effective April 1, 2025).
The $36,750 figure is from https://courts.ca.gov/documents/ej156.pdf. No acreage limit is stated. Re-verified 2026-10-27.
Source: Cal. Code Civ. Proc. 704.730(a)-(b); 703.140(b)(1); Judicial Council form EJ-156 (rev. July 20, 2026)
Car exemption$8,625 under either system (regular system CCP 704.010; alternative system CCP 703.140(b)(2)), effective April 1, 2025.
Amounts adjust every three years (next adjustment period ends March 31, 2028).
Source: Cal. Code Civ. Proc. 704.010, 703.140(b)(2); Judicial Council form EJ-156 (rev. July 20, 2026)
Wildcard exemptionOnly in the alternative 703.140(b) system: $1,950 in any property, plus any unused part of the $36,750 residence exemption (effective April 1, 2025). The regular system has no general wildcard.
Source: Cal. Code Civ. Proc. 703.140(b)(5); Judicial Council form EJ-156 (rev. July 20, 2026)
Retirement accountsRegular system: amounts held in private retirement plans (including union plans) are exempt; IRAs and similar self-directed accounts are exempt "only to the extent necessary to provide for the support of the judgment debtor when the judgment debtor retires," considering the filer's spouse, dependents and other likely resources. Alternative system: payments under pension, annuity and similar plans are exempt to the extent reasonably necessary for support.
Federal law (11 U.S.C. 522(b)(3)(C)) separately protects tax-exempt retirement funds. Re-verified 2026-10-27.
Source: Cal. Code Civ. Proc. 704.115(a)-(b), (e); 703.140(b)(10)(E)
WagesRegular system: paid earnings traced into a bank account or held as cash are exempt in full if they were already subject to a wage garnishment or support assignment, and otherwise to the extent they would be protected from garnishment under CCP 706.050. Alternative system: up to $8,625 in accrued vacation, sick or family leave pay, or wages (CCP 703.140(b)(10)(F), effective April 1, 2025).
The $8,625 figure is from https://courts.ca.gov/documents/ej156.pdf. Re-verified 2026-10-27.
Source: Cal. Code Civ. Proc. 704.070(b); 703.140(b)(10)(F); Judicial Council form EJ-156 (rev. July 20, 2026)

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FAQ

Can you use the federal bankruptcy exemptions in California?
California does not allow the federal bankruptcy exemptions. Instead, filers choose one of California's two systems: the regular exemptions in CCP 704.010 et seq. (including the homestead), or the alternative list in CCP 703.140(b). Spouses filing together must pick the same system; a married person filing alone generally needs a written waiver from the spouse to use the 703.140(b) list.
How much home equity is protected in bankruptcy in California?
Regular system: the greater of $300,000 or the countywide median sale price for a single-family home in the prior calendar year, capped at $600,000; both figures adjust annually for inflation beginning January 1, 2022. Alternative 703.140(b) system: $36,750 in a residence (effective April 1, 2025).
Can I keep my car in bankruptcy in California?
$8,625 under either system (regular system CCP 704.010; alternative system CCP 703.140(b)(2)), effective April 1, 2025.
Does California have a wildcard exemption?
Only in the alternative 703.140(b) system: $1,950 in any property, plus any unused part of the $36,750 residence exemption (effective April 1, 2025). The regular system has no general wildcard.
Are retirement accounts protected in bankruptcy in California?
Regular system: amounts held in private retirement plans (including union plans) are exempt; IRAs and similar self-directed accounts are exempt "only to the extent necessary to provide for the support of the judgment debtor when the judgment debtor retires," considering the filer's spouse, dependents and other likely resources. Alternative system: payments under pension, annuity and similar plans are exempt to the extent reasonably necessary for support.
Are wages protected in bankruptcy in California?
Regular system: paid earnings traced into a bank account or held as cash are exempt in full if they were already subject to a wage garnishment or support assignment, and otherwise to the extent they would be protected from garnishment under CCP 706.050. Alternative system: up to $8,625 in accrued vacation, sick or family leave pay, or wages (CCP 703.140(b)(10)(F), effective April 1, 2025).

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.