California Bankruptcy Laws

Federal filing fee for Chapter 7 bankruptcy. Fee waivers available for qualifying low-income filers.

Federal filing fee for Chapter 13 bankruptcy.

You must complete credit counseling from an approved agency within 180 days before filing and a debtor education course before discharge.

Chapter 7 filers must pass a means test comparing their income to California's median income. California's median is among the highest in the nation due to the high cost of living.

Protects the greater of $300,000 or the countywide median sale price of a single-family home, up to a maximum of $600,000. This is one of the most generous homestead exemptions in the country.

System 2 mirrors the federal exemption structure with a smaller homestead exemption but a larger wildcard exemption that can be applied to any property. Often preferred by renters or those with little home equity.

Protects household furnishings, clothing, appliances, one motor vehicle (up to a set equity amount), tools of trade, and personal effects necessary for daily life.

Private retirement plans including IRAs, 401(k)s, pensions, and other qualified plans are exempt from creditors to the extent necessary to provide for the debtor's retirement.

California limits wage garnishment to the lesser of 25% of disposable earnings or the amount by which weekly earnings exceed 40 times the state minimum wage — often more protective than federal limits.