Money is being taken from your paycheck, or your bank account froze overnight. It feels final. It is not. California law says creditors cannot take money you need for the basics of life — but the law does not apply itself. You claim that protection with a court filing called a claim of exemption, and the deadlines to file it are short.
What a claim of exemption is
An "exemption" is money the law shields from creditors. A claim of exemption is the paperwork that tells the court: this money is protected, give it back or stop taking it. It works in both of the situations that bring most people to this page:
- Wage garnishment — part of your pay is being sent to a creditor every payday under a court order.
- Bank levy — a creditor froze funds sitting in your bank account.
How much of your paycheck can they take?
California caps garnishment at a portion of your disposable earnings — your pay after required deductions. The formula protects low earners heavily: the closer your pay is to minimum wage, the less can be taken, down to nothing. And the cap is only the ceiling. If your income is needed to support yourself or your family, a claim of exemption can push the garnishment lower — sometimes to zero.
The exact math depends on your wages and the current state numbers, which adjust over time. Do not assume the amount being taken is correct. Employers and collectors get the formula wrong, and no one checks it unless you do.
Money that is protected no matter what
Some funds are generally off-limits to consumer debt collectors entirely:
- Social Security and SSI
- Most disability and unemployment benefits
- Most public assistance
- Most retirement funds
- A baseline amount in your bank account, protected automatically — the dollar figure adjusts each year
Protected money gets frozen anyway all the time, because the bank often cannot tell where funds came from. That does not mean the money is gone. It means you have to claim it — quickly.
The forms, in plain terms
California uses standard Judicial Council forms. For a wage garnishment, the claim of exemption is form WG-006, with a financial statement on WG-007. For a bank levy, it is EJ-160, with the financial statement on EJ-165. The financial statement is where the case is won or lost: it shows the court your income and your necessary living costs — rent, food, utilities, transportation, family support.
Honest, complete, and specific wins. Vague loses. This is where a lawyer's help earns its keep.
The deadlines are short. Truly short.
After a levy or garnishment notice, the window to claim your exemptions is measured in days, not months — and if the creditor opposes your claim, a court hearing gets scheduled where a judge decides. Miss the window and frozen money can be handed over, even money that the law would have protected. The single most expensive mistake people make here is waiting to "see what happens." What happens is the money leaves.
Ask the bigger question, too
Every garnishment and levy rests on a judgment. If that judgment came from a lawsuit you were never properly served with — one you never knew existed — the judgment itself may be attackable. Set it aside and the garnishment built on it stops. When we review a garnishment case, we always look at both layers: protect the money now, and question the judgment underneath. Our page on wage garnishment and bank levies covers the full picture.
What to do today
- Gather every paper you have: the levy or garnishment notice, anything from the sheriff, your pay stubs, and bank statements showing where deposits come from.
- Note the date on the notice. Your filing window is already running.
- Do not move money around between accounts — it can muddy which funds are protected.
- Get the paperwork in front of someone who files these for a living.
Send it to us today. The review is free, and with deadlines this short, today is not a figure of speech.
