- Here are seven tables that condense important consumer-related laws for California residents on one handy page.
- Learn more about California statutes of limitations for debt.
California Statute of Limitations, Collection Law, Payday Loans & Bankruptcy Limits
Each state legislature wrote its own set of laws protecting state residents. This page contains seven tables that condense important consumer-related laws for California residents. Because seeing all seven tables is a bit overwhelming, we hid them until you click on links to reveal them. Click on the appropriate link to see the information you wish to see. To learn more, we include links to state and Bills.com resources you can trust.
California Collection Law
Account levy, liens against property, and wage garnishment are allowed in California. Learn the collections rules for California debts, and related laws. View or hide California Collection Laws tables
| Collection Law | Garnishment | Account Levy | Exemptions (debt) | Homestead law | Homestead exemption | Doctrine of Necessaries | Probate rule |
|---|---|---|---|---|---|---|---|
| California rule | Up to 25% of earnings | Allowed | Vehicle: $2,300 Household: "Ordinary & reasonable" Home improvement materials: $2,425 Jewelry & art: $6,075 Health aids: "reasonably necessary" Tools of trade: $6,075 Commercial motor vehicle: $4,850 | Principal dwelling including condo, mobilehome, or boat | $75,000 if alone $100,000 with family member $175,000 if debtor or family member is • age 65 • disabled • age 55 & low income | Yes | Estates > $150,000 must be probated |
| California statute | CCP Section 703.010-703.150, 704.070, 706.010-706.011, 706.020-706.034 | CCP Section 704.010-704.210 | CCP Section 703.010-703.150 and 704.010-704.210 | CCP Section 704.910-704.995 | CCP Section 704.710-704.850 | Family Code Section 914 | Calif. Probate Code |
| Bills.com resource | California Collection Laws | ||||||
California Collection Law
California Statute of Limitations
A statute of limitations provides an affirmative defense should a creditor file a lawsuit against debtor for a consumer debt. View or hide California Statute of Limitations Laws table
| Statute of Limitation | Credit Card | Written contract | Spoken contract | Judgment |
|---|---|---|---|---|
| California rule | 2 or 4 | 4 | 2 | 10 |
| California statute | CCP Section 335-349.4 | |||
| Bills.com resource | California Statute of Limitations | |||
California Statute of Limitations
California Bankruptcy Rules
Learn the bankruptcy exemption amounts for California residents. View or hide California Bankruptcy Laws table
| Bankruptcy | Means Test Standards | ||
|---|---|---|---|
| California rule | Food, Clothing & Other Items_1_ | $534 | |
| Health care_1_ | 65 $144 | ||
| Housing non-mortgage_2_ | $358-$479 | ||
| Housing rent or mortgage | $805-$2,458 | ||
| Transport private_2_ | $236-306 | ||
| Transport public_3_ | $182 | ||
| Vehicle ownership costs | $496 | ||
| Statute | Census Bureau, IRS Data and Administrative Expenses Multipliers 1. National standard one person 2. California standard varies by county 3. Regional standard | ||
| Bills.com resource | Bankruptcy Information | ||
California Bankruptcy
Plan 1 CCP 703 Exemptions
| Plan 1 Exemptions | Individual | Joint | Calif. Code of Civil Procedure |
|---|---|---|---|
| Alimony, Support, Or Separate Maint. | Unlimited | 703.140(b)(10)(D) | |
| Any Property Selected By Debtor | $1,175 | $1,175 | 703.140(b)(5), 703.150 |
| Crime Victims Reparation Benefits | Unlimited | 703.140(b)(11)(A) | |
| Disability, Illness, Or Unempl. Benefits | Unlimited | 703.140(b)(10)(C) | |
| Health Aids | Unlimited | 703.140(b)(9) | |
| Homestead, Cemetery Plot | $22,075 | $22,075 | 703.140(b)(1), 703.150 |
| Household Furn. ($525 max. value for any particular item) | Unlimited | 703.140(b)(3), 703.150 | |
| Jewelry | $1,425 | $1,425 | 703.140(b)(4), 703.150 |
| Life Ins. - Unmatured, Accrued Div Interest or Loan Value | $11,800 | $11,800 | 703.140(b)(8), 703.150 |
| Life Ins. Contracts - Unmatured | Unlimited | 703.140(b)(7) | |
| Motor Vehicle | $3,525 | $3,525 | 703.140(b)(2), 703.150 |
| Pmts. - Life Ins. Contract | Unlimited | 703.140(b)(11)(C) | |
| Pmts. - Loss Of Future Earnings | Unlimited | 703.140(b)(11)(E) | |
| Pmts. - Personal Bodily Injury | $22,075 | 22,075 | 703.140(b)(11)(D) |
| Pmts. - Stock, Bonus, Pension Or Annuity Plans | Unlimited | 703.140(b)(10)(E) | |
| Pmts. - Wrongful Death | Unlimited | 703.140(b)(11)(B) | |
| Public Assistance | Unlimited | 703.140(b)(10)(A) | |
| Tools Of Trade - Books, Equip. Etc. | $2,200 | $2,200 | 703.140(b)(6), 703.150 |
| Veteran's Benefits | Unlimited | 703.140(b)(10)(B) | |
Plan 1 CCP 703 Exemptions
Plan 2 CCP 704 Exemptions
| Plan 2 Exemptions | Individual | Joint | California Code |
|---|---|---|---|
| Alameda/Contra Costa County Trans. Dist. Empl.'s Retir. Ben. | Unlimited | Util. Code § 25337 | |
| Bond Posted By Employee | Unlimited | Labor Code §404 | |
| Burial Plots | Unlimited | 704.200 | |
| Commercial Motor Vehicle | $4,850 | $9,700 | 704.060(d), 703.150 |
| Earnings Paid | Unlimited | 704.070, 703.150 | |
| Escrow And Trust Funds | Unlimited | Fin. Code § 17410 | |
| Escrow Funds; Trust Funds | Unlimited | Fin. Code § 50202 | |
| Exemption And Use Of Proceeds From Sales Of Unused Lands | Unlimited | Health & Safe. Code § 7925 | |
| Health Aids | Unlimited | 704.050 | |
| Homestead - $100,000 (debtor member of family unit) | $100,000 | $100,000 | 704.730(a)(2) |
| Homestead - $75,000 | $75,000 | $75,000 | 704.730(a)(1) |
| Homestead (debtor over 65) | $175,000 | $175,000 | 704.730(a)(3) |
| Household Furnishings | Unlimited | 704.020 | |
| Insur. Benefits - Health, Disability | Unlimited | 704.130 | |
| Insurance - Fidelity Bonds | Unlimited | Labor 404 | |
| Jewelry, Heirlooms & Works of Art | $7,175 | $7,175 | 704.040, 703.150 |
| License To Engage In Business | Unlimited | 695.060 | |
| Life Insurance - Proceeds Of Matured | Unlimited | 704.100(c) | |
| Life Insurance - Unmatured | $11,475 | $11,475 | 704.100(b), 703.150 |
| Life Insurance Policies - Unmatured | Unlimited | 704.100(a) | |
| Motor Vehicle - Equity & Insurance | $2,725 | $2,725 | 704.010, 703.150 |
| Municipal Utility District Officers/Employees | Unlimited | Util. Code § 12337 | |
| Partnership Interest (To The Extent Allowed By Ex. Laws) | Unlimited | Corp. Code §16504 | |
| Partnership Property | Unlimited | Corp. Code § 16504 | |
| Personal Injury & Wrongful Death Claims | Unlimited | 704.140(a), 704.150(a) | |
| Proceeds From Pers. Injury Or Death | Unlimited | 704.140(d), 704.150(c) | |
| Property Not Subject To Money Judgment | Unlimited | 704.210; 695.030 | |
| Public Benefits Deposit Account | Unlimited | 704.080 | |
| Public Employees' Retirement Benefits | Unlimited | Gov't Code §21255 | |
| Public Entity Retirement, Death, Disability Benefits | Unlimited | 704.110(b), Gov. Code § 21201 | |
| Relocation/Dwelling Displacement Payment | Unlimited | 704.180 | |
| Residential Building Materials | $2,700 | $2,700 | 704.030, 703.150 |
| Retirement Benefits - County Employees | Unlimited | Gov. Code § 31452 | |
| Retirement Benefits - County Firefighter | Unlimited | Gov. Code § 32210 | |
| Retirement Benefits - County Peace Officer | Unlimited | Gov. Code § 31913 | |
| Retirement Benefits - Private | Unlimited | 704.115(a)(1), (2) | |
| Retirement Benefits - Self Employed | Unlimited | 704.115(a)(3) | |
| Retirement Benefits Received - Public | Unlimited | 704.110(d) | |
| San Francisco BART District | Unlimited | Cal. Pub. Util. Code § 28896 | |
| San Joaquin Regional Trans. District | Unlimited | Cal. Pub. Util. Code § 50146 | |
| Santa Barbara Metro. Trans. District | Unlimited | Cal. Pub. Util. Code § 95836 | |
| Santa Cruz Metro. Trans. District | Unlimited | Cal. Pub. Util. Code § 98196 | |
| Students Financial Aid | Unlimited | 704.190 | |
| Tools Of Trade - Books, Equipment etc. | $7,175 | $14,350 | 704.060, 703.150 |
| Trust Fund Accounts - Prisoners | $1,425 | $1,425 | 704.090 |
| Unemployment Compensation Benefits | Unlimited | 704.120 | |
| Union Benefits (Labor Dispute) | Unlimited | 704.120(5) | |
| Vacation Credits - Public Employees | Unlimited | 704.113 | |
| Welfare & Fraternal Society Benefits | Unlimited | 704.170 | |
| Workmen's Compensation Benefits | Unlimited | 704.160 | |
Plan 2 CCP 704 Exemptions
California Mortgage
California offers a limited anti-deficiency law for California residents who fall into foreclosure. Also, learn the maximum amount of an FHA loan in California. View or hide California Mortgage Laws table
| Mortgage | FHA & Fannie/Freddie Loan Limits | Lawyer needed for home purchase | Anti-deficiency rule | Foreclosure type | Foreclosure minimum timeline |
|---|---|---|---|---|---|
| California rule | $417,000 to $625,500 | No | Yes, for purchase money loans | Both, non-judicial preferred | 200 days |
| California statute | FHA Mortgage Limits | Calif. Civil Code § 2920-2944.7 & CCP § 580b | Calif. Civil Code 2924 | ||
| Bills.com resources | Mortgage Home Page California Mortgage & Refinancing California Mortgage Foreclosure ProcessIs My Home Loan Recourse or Non-Recourse Loan in California?California Eviction | ||||
California Mortgage
California Payday Loans
California allows a consumer to borrow up one $300 payday loan at a time. View or hide California Payday Laws table
| Payday Loans | Allowed by Law | Maximum Loan | Maximum Fee | Maximum Loan Number | Internet Payday Loans? | State Loan Authority |
|---|---|---|---|---|---|---|
| California rule | Yes | $300 | 15% of loan amount. $15 NSF collection fee | One | Yes, but must be Calif licensed | |
| California statute | Calif. Financial Code § 23000 to 23106 | Financial Services Licensee Address Listing | ||||
| Bills.com resource | California Payday Loan | |||||
California Payday Loans
California Consumer Protection
What is the maximum interest rate a consumer can be charged in California? What is California' Lemon Law? Where can a California resident find no-cost legal services? View or hide California Consumer Laws table
| Consumer Protection | Consumer Protection Authority | Debt settlement allowed | Credit counseling fee restrictions | Usury rate | Utility Regulator | Labor Complaints office | Unemployment | Lemon Law, Used & New | Legal Aid Contacts | Credit Report Freeze Laws |
|---|---|---|---|---|---|---|---|---|---|---|
| California rule | Calif. Dept. of Consumer Affairs | Yes | $50 enrollment. 8% monthly & $35 max | 10% consumer loan | California Public Utilities Commission | Department of Industrial Relations | Employment Development Dept. | Both | LawHelpCalifornia.org | ID theft victims: free >age 65: $5 per credit bureau |
| California statute | California Constitution Article 15: Usury | Song-Beverly Consumer Warranty Act at Civil Code § 1790 | California Office of Privacy and Civil Code § 1785.11.2-1785.11.6 and 1785.15 |
California Consumer Protection
California Facts
Learn the California population, sales tax rate, average income, and more. View or hide California Facts table
| Consumer Facts | Population | Employment Statistics | California Average Income | State income tax? | State income tax rate | Property tax rate (average) | Sales tax rate | State Student Loan 529 plan |
|---|---|---|---|---|---|---|---|---|
| California rule | 37,253,956 | 10.9% | $29,020 | Yes | 9.3% maximum rate for individuals | 1.157% | 7.25%- 8.75% | ScholarShare College Savings Plan |
| California statute | US Census Bureau | Calif. EDD Report 400 C | US Census Bureau | 2011 California Tax Rates and Exemptions | Calif. State Board of Equalization Annual Report: Table 14: General Property Tax Levies As Compiled For Computation Of The Average Tax Rate | Calif. State Board Of Equalization California City and County Sales and Use Tax Rates | ||
California Facts
Dealing with debt
Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Housing debt totaled $12.612 trillion and non-housing debt was $4.891 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
Collection and delinquency rates vary by state. For example, in Kansas, 16% have student loan debt. Of those holding student loan debt, 8% are in default. Auto/retail loan delinquency rate is 3%.
Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.
