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California bankruptcy exemptions help you understand which items, such as a house or car, are at risk of being lost if you file for bankruptcy. Unfortunately, bankruptcy exemptions in California are complex.
The purpose of this article is to:
Here's the list of common bankruptcy exemptions in California. This was updated in 2026, but please make sure it's accurate, and we do our best to keep our calculator up to date.
California exemptions determine what assets you may be able to protect when filing. The homestead exemption is one of the most important protections available.
California’s homestead exemption in 2026 ranges from $361,430 to $722,860, depending on your county’s median home price. In many high-cost areas, homeowners can protect up to the full $722,860 in equity when filing bankruptcy.
| Exemption Type | Amount | Notes |
|---|---|---|
| Automobile | $3,625 | Applies to equity in one or more vehicles |
| Jewelry | $9,525 | Includes personal jewelry items |
| Tools of Trade | $8,725 | Used for work or business purposes |
| Wildcard | $1,425 | Can be applied to any property |
| Tools (Spouses Combined) | Up to $17,450 | If both spouses use tools in the same occupation |
Bankruptcy exemptions can help you keep specific belonging when filing Chapter 7 bankruptcy. In many states, there are bankruptcy exemptions that cover your home, vehicle, jewelry, tools of your trade, etc. The bankruptcy exemptions can also help guide your Chapter 13 plan payment.
Here’s a couple of things to note:
California specific homestead bankruptcy exemption text: "New Language as of January 1, 2021: Gavin Newsome signed into law the Assembly Bill CA 1885 that passed on September 18, 2020, the updated language: 704.730. (a) The amount of the homestead exemption is the greater of the following: (1) The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed six hundred thousand dollars ($600,000). (2) Three hundred thousand dollars ($300,000). (b) The amounts specified in this section shall adjust annually for inflation, beginning on January 1, 2022, based on the change in the annual California Consumer Price Index for All Urban Consumers for the prior fiscal year, published by the Department of Industrial Relations." (Source)
Here are other common exemptions. There may be limits to the amount of the bankruptcy exemption, so please be sure to check each one individually.
Not covered here include less common exemptions such as illness benefits, firefighter pensions, retirement involving stock. However, we encourage you to research the official California legal text for more information.
You may have too much equity in a belonging, which makes you consider other options. For example, let’s say you own a boat outright that is valued at $100,000. With the wildcard exemption in California, you may be at risk of losing that vehicle.
There’s an opportunity to still do the Chapter 7 bankruptcy, but the trustee may liquidate the boat to pay off some of the creditors. You have a couple more prominent options:
Chapter 13 Bankruptcy in California is called wage earner's bankruptcy where you pay a monthly payment plan. You would be set up on a 3 or 5-year plan that would be a set monthly rate based on what you can afford. This option is generally more expensive than a Chapter 7 after legal fees, but it is a valid option for many folks who are above the exemptions
Debt Settlement is where a company or you negotiates a lower amount owed with the creditors directly because of the financial hardship that is preventing you from paying your bills. For example, a debt settlement company would try to negotiate a $10,000 credit bill down to $5,000. This option would still negatively affect your credit and there are fees associated with this option, but it is a valid option for many and can be quicker than a Chapter 13 bankruptcy depending on how aggressive you are with negotiating and paying off the debt.
Debt Management is where a company negotiates a lower interest rate with your creditors because of financial hardship. For example, a debt management company would try to negotiate a credit card’s interest rate from 22% to 8%. This option is often the most expensive of the debt relief options and can work best for credit cards, but debt management is a valid option for many folks.
Understand what items you may lose when filing bankruptcy to help you make a more informed decision. The bankruptcy exemptions in bankruptcy exemptions calculator or reach out to us directly at support@tryascend.com if you have any questions.
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