In California, a judgment creditor cannot simply take everything you own. State law automatically protects your home equity through a homestead exemption that ranges from a minimum of $300,000 up to $600,000, depending on the median home sale price in your county the year before you claim it (California Code of Civil Procedure § 704.730). This amount is adjusted every year for inflation. That single rule sets California apart from most states, which cap homestead protection at a flat figure or, in a few states, allow no dollar limit at all. Alongside the homestead, California law also shields most of your wages, retirement accounts, public benefits, a motor vehicle, and ordinary household goods from creditors who hold a money judgment against you.
The California homestead exemption
California's homestead protects equity in the home where you live. Under CCP § 704.730, the exemption is the greater of $300,000 or the countywide median sale price of a single-family home in the prior calendar year, but never more than $600,000, with both figures indexed annually to inflation. This protection applies automatically to your principal residence; you do not have to record anything to get the automatic homestead. You may also record a declared homestead, which can preserve protection over reinvested sale proceeds for up to six months. The exemption shields equity, not the whole house: if a forced sale would leave enough to pay your exempt amount plus the costs of sale, a creditor can still force a sale, but you walk away with your protected equity in cash.
Important exceptions: the homestead does not stop foreclosure by your mortgage lender, a deed-of-trust holder, a mechanic's lien, or unpaid property taxes, and it offers limited protection against child and spousal support judgments.
Wage garnishment limits
California limits how much of your paycheck a creditor can garnish, and the limit is more generous to debtors than the federal floor. Under CCP § 706.050, a creditor may take the lesser of (1) 25% of your weekly disposable earnings, or (2) the amount by which your weekly disposable earnings exceed 40 times the applicable minimum hourly wage (state or, if higher, the local minimum wage where you work). The federal Consumer Credit Protection Act (15 U.S.C. § 1673) uses 30 times the federal minimum wage of $7.25, so California's 40-times-a-higher-wage formula protects substantially more income.
As of 2026, California's state minimum wage is approximately $16.50 per hour, and many cities (such as San Francisco, Los Angeles, and West Hollywood) set higher local minimums. Because these figures are adjusted for inflation each January 1, you should confirm the current state rate with the California Department of Industrial Relations and your local rate with your city before calculating your protected amount. Disposable earnings means what is left after legally required deductions like taxes and Social Security. Garnishment for child or spousal support follows separate, higher limits.
Retirement accounts and pensions
California broadly protects retirement savings. Under CCP § 704.115, private retirement plans, profit-sharing plans, and self-employed retirement plans are exempt. Tax-qualified employer plans such as 401(k)s and pensions generally receive full protection, and federal law (ERISA) independently shields most employer pension plans nationwide. Individual Retirement Accounts (IRAs) and self-employed plans are exempt under California law only to the extent the funds are reasonably necessary to support you and your dependents at retirement, so very large IRA balances may receive less than complete protection in a judgment enforcement action. Public retirement systems for government employees (such as CalPERS) are also protected.
Social Security, unemployment, and other public benefits
Public benefits enjoy strong protection in California. Social Security benefits are exempt under federal law (42 U.S.C. § 407) and remain protected even after they are deposited in your bank account. California adds its own layers: unemployment compensation is exempt under CCP § 704.120, public assistance such as CalWORKs is exempt under § 704.170, and disability and health insurance benefits are exempt under § 704.130. Workers' compensation benefits are also protected.
When exempt benefits land in a bank account, California gives extra automatic protection. Under CCP § 704.220, a baseline amount of money in a deposit account is automatically exempt without your having to file anything, tied to the state's minimum basic standard of adequate care for a family of four. Separately, § 704.080 protects funds traceable to Social Security and other public benefits up to set limits. Because these dollar figures are adjusted periodically, confirm the current amounts before relying on a specific number.