Bankruptcy in California

In California you use state exemptions only (California has two state systems; you pick one). Your home (homestead): 704 system: the greater of $300,000 or the countywide median sale price for a single-family home in the calendar year before you claim the exemption, up to $600,000.

You file in one of 4 federal bankruptcy courts:

What can I keep?Do I pass the means test?Where do I file?Free help

Checked against official sources: October 25, 2026. · Free letter and checklist ↓

What you can keep in California

Exemptions are the property the law lets you keep. You use the California list. The federal list is not available in California. California has two state systems; you pick one.

Law: Cal. Code Civ. Proc. 703.130; Cal. Code Civ. Proc. 703.140(a)

What	California exemption
Home (homestead)	704 system: the greater of $300,000 or the countywide median sale price for a single-family home in the calendar year before you claim the exemption, up to $600,000. Both figures are adjusted each January 1 (since 2022) for California inflation; no official table of the adjusted figures is published. The homestead protects your principal home (house, condo, mobile home, boat, co-op and more) where you or your spouse live. It applies automatically in bankruptcy; recording a homestead declaration is optional and mainly blocks judgment liens. Spouses get one homestead exemption between them. In the 703.140(b) system, the residence exemption is only $36,750. Law: Cal. Code Civ. Proc. 704.710, 704.720, 704.730, 704.950 The law gives a rule here, not one dollar figure, and the figure can change each year. We show the rule exactly as the law states it and do not calculate a figure for you. Check the current figure in the official source or with the court. Official source: Cal. Code Civ. Proc. 704.730 (official text, California Legislative Information)
Car or other vehicle	$8,625 total equity in motor vehicles (704 system). Law: Cal. Code Civ. Proc. 704.010; EJ-156
Household goods and clothing	Household furnishings, appliances, food, clothing and other personal effects that are ordinarily and reasonably necessary are exempt with no dollar cap (items of extraordinary value can be lost). Jewelry, heirlooms and art: $10,950 total. Law: Cal. Code Civ. Proc. 704.020, 704.040; EJ-156
Wildcard (any property)	None in the 704 system. The 703.140(b) system has a wildcard of $1,950 plus any unused part of its $36,750 residence exemption. Law: Cal. Code Civ. Proc. 703.140(b)(5); EJ-156
Tools of your trade	$10,950 in tools, equipment and other property used in your trade or business ($21,900 if you and your spouse work in the same trade). A commercial vehicle counts only up to $4,850 ($9,700 for spouses in the same trade). Law: Cal. Code Civ. Proc. 704.060; EJ-156
Wages	Paid wages you can trace into a bank account or cash are exempt to the same extent wages are protected from garnishment (all of them if they were already garnished). Unused vacation, sick leave and family leave pay: $8,625. Law: Cal. Code Civ. Proc. 704.070, 704.113; EJ-156
Retirement accounts	Private pensions and profit-sharing plans are fully exempt. IRAs and self-employed plans are exempt only to the extent needed for your support in retirement (and not less than the federal 522(n) IRA amount for personal debts). Public retirement benefits are fully exempt. Law: Cal. Code Civ. Proc. 704.110, 704.115
Public benefits	Unemployment and disability insurance benefits, workers' compensation, and public aid are exempt. Law: Cal. Code Civ. Proc. 704.120, 704.160, 704.170
Other exemptions	The other system, Cal. Code Civ. Proc. 703.140(b) (amounts from April 1, 2025): residence $36,750; motor vehicle $8,625; household goods, clothing, books, animals, appliances $925 per item; jewelry $2,175; wildcard $1,950 plus unused residence amount; tools of trade $10,950; life insurance loan value $19,625; unpaid wages/vacation/sick pay $8,625; personal injury payments $36,750; plus Social Security, unemployment, public assistance, veterans' and disability benefits, support and retirement payments needed for support. Married couples filing together must both use the same system. Life insurance loan value: $17,525 (704 system) (Cal. Code Civ. Proc. 704.100; EJ-156). Bank account: $2,325 per person (not per account) is exempt without a claim from July 1, 2026; the amount is updated each July 1 (Cal. Code Civ. Proc. 704.220; EJ-156). Direct-deposited Social Security: $4,400 automatic ($6,575 for two or more payees); public benefits $2,175 ($3,250); amounts above that are also exempt if they are benefit payments (Cal. Code Civ. Proc. 704.080; EJ-156).

Federal limit on a newly bought home

If you use your state's exemptions, you can protect no more than $214,000 of home equity that you acquired in the 1,215 days (about 3 years and 4 months) before you filed. Equity moved from an earlier home in the same state, bought before that period, does not count. The cap does not apply to a family farmer's main home.

Law: 11 U.S.C. 522(p); 90 FR 8941

Amounts: Judicial Council form EJ-156 (rev. July 20, 2026): 703.140(b) and most 704 amounts effective April 1, 2025 (next 3-year adjustment April 1, 2028); 704.220 deposit account $2,325 effective July 1, 2026. Homestead adjusts each January 1; EJ-156 does not list the adjusted homestead figures.

The means test in California: first step

Official Form 122A-1 compares your household's yearly income with the median income in California. Here are the official medians:

1 person$79,253
2 people$102,797
3 people$116,541
4 people$139,071
Each extra person+$11,100

Applies to cases filed on or after April 1, 2026. 1 = one earner; 2, 3, 4 = people in the household; add = amount added for each person over 4

Where to file in California

You file in the federal bankruptcy district where you lived (your domicile) for most of the 180 days before filing. California has four districts, split by county. Find yours: Central (ZIP/city search) https://www.cacb.uscourts.gov/all-locations-map, Eastern https://www.caeb.uscourts.gov/Locations, Northern (county map) https://www.canb.uscourts.gov/court-info/court-locations, Southern = San Diego and Imperial Counties.

Law: 28 U.S.C. 1408

U.S. Bankruptcy Court for the Central District of California

Divisions: Los Angeles, Riverside, Santa Ana, San Fernando Valley, Northern (San Luis Obispo and Santa Barbara Counties and part of Ventura County)

Clerk's phone: (855) 460-9641

Court's self-help page

U.S. Bankruptcy Court for the Eastern District of California

Divisions: Sacramento, Fresno, Modesto (Modesto office closed; Modesto Division mail goes to Sacramento)

Clerk's phone: (916) 930-4400 (Sacramento); (559) 499-5800 (Fresno)

Court's self-help page

U.S. Bankruptcy Court for the Northern District of California

Divisions: San Francisco, Oakland, San Jose, Santa Rosa

Clerk's phone: (888) 821-7606

Court's self-help page

U.S. Bankruptcy Court for the Southern District of California

Divisions: San Diego (serves San Diego and Imperial Counties)

Clerk's phone: (619) 557-5620

Court's self-help page

Free help in California

Free letter and checklist

Letter: tell a creditor you filed bankruptcy

Notice to a creditor or debt collector with your case number, court, filing date and chapter.

Checklist: what to gather before you file

Income, tax returns, debts, property and budget papers the federal forms ask about, with California's courts.

Bankruptcy in California by topic

Exemptions in California

Home, car, household goods, wildcard and more, with the law for each.

The means test in California

The official median income and the first-step check.

Where to file in California

The bankruptcy courts, divisions, fees and the 341 meeting.

Good to know in California

You must choose one of two California exemption systems; you cannot mix them or use the federal list. The 704 system is usually built around the large homestead; the 703.140(b) system has a smaller residence exemption but a wildcard.
Law: Cal. Code Civ. Proc. 703.130, 703.140
If you are married and file alone, you can use the 703.140(b) system only if your spouse also signs a written waiver of the 704 system for the case, unless you live apart and do not co-own a home.
Law: Cal. Code Civ. Proc. 703.140(a)(2)
If your home equity is at or below the homestead limit on the filing date, any increase in value during the case is also exempt.
Law: Cal. Code Civ. Proc. 703.140(c)

Changes in 2024–2026

April 1, 2025: 3-year inflation increase to the 703.140(b) and 704 amounts (e.g., 704 vehicle $7,500 to $8,625; 703.140(b) residence $29,275 to $36,750). July 1, 2026: automatic bank account exemption updated to $2,325. Homestead limits adjust every January 1.

Questions about bankruptcy in California

Can I use the federal bankruptcy exemptions in California?

No. California requires you to use the state exemptions.

What is the homestead exemption in California?

704 system: the greater of $300,000 or the countywide median sale price for a single-family home in the calendar year before you claim the exemption, up to $600,000. Both figures are adjusted each January 1 (since 2022) for California inflation; no official table of the adjusted figures is published.

How much of a car can I keep in bankruptcy in California?

$8,625 total equity in motor vehicles (704 system).

Does California have a wildcard exemption?

None in the 704 system. The 703.140(b) system has a wildcard of $1,950 plus any unused part of its $36,750 residence exemption.

What household goods can I keep in California?

Household furnishings, appliances, food, clothing and other personal effects that are ordinarily and reasonably necessary are exempt with no dollar cap (items of extraordinary value can be lost). Jewelry, heirlooms and art: $10,950 total.

Are retirement accounts protected in bankruptcy in California?

Private pensions and profit-sharing plans are fully exempt. IRAs and self-employed plans are exempt only to the extent needed for your support in retirement (and not less than the federal 522(n) IRA amount for personal debts). Public retirement benefits are fully exempt.

Are my wages protected in California?

Paid wages you can trace into a bank account or cash are exempt to the same extent wages are protected from garnishment (all of them if they were already garnished). Unused vacation, sick leave and family leave pay: $8,625.

Where do I file bankruptcy in California?

What is the median income for the means test in California?

For cases filed on or after April 1, 2026: 1 person: $79,253; 2 people: $102,797; 3 people: $116,541; 4 people: $139,071; Each extra person: +$11,100.

Where can I get free help with bankruptcy in California?

Public Counsel (Los Angeles area; linked by the Central District court), Bay Area Legal Aid (linked by the Northern District court) and University of the Pacific McGeorge School of Law - Bankruptcy Pro Se Clinic (Eastern District).