2009 California Code of Civil Procedure - Section 703.010-703.150 :: Article 1. General Provisions

703.010.  Except as otherwise provided by statute:
   (a) The exemptions provided by this chapter or by any other
statute apply to all procedures for enforcement of a money judgment.
   (b) The exemptions provided by this chapter or by any other
statute do not apply if the judgment to be enforced is for the
foreclosure of a mortgage, deed of trust, or other lien or
encumbrance on the property other than a lien created pursuant to
this division or pursuant to Title 6.5 (commencing with Section
481.010) (attachment).

703.020.  (a) The exemptions provided by this chapter apply only to
property of a natural person.
   (b) The exemptions provided in this chapter may be claimed by any
of the following persons:
   (1) In all cases, by the judgment debtor or a person acting on
behalf of the judgment debtor.
   (2) In the case of community property, by the spouse of the
judgment debtor, whether or not the spouse is also a judgment debtor
under the judgment.

703.030.  (a) An exemption for property that is described in this
chapter or in any other statute as exempt may be claimed within the
time and in the manner prescribed in the applicable enforcement
procedure. If the exemption is not so claimed, the exemption is
waived and the property is subject to enforcement of a money
judgment.
   (b)  Except as otherwise specifically provided by statute,
property that is described in this chapter or in any other statute as
exempt without making a claim is not subject to any procedure for
enforcement of a money judgment.
   (c) Nothing in this section limits the authority of the court
pursuant to Section 473 to relieve a person upon such terms as may be
just from failure to claim an exemption within the time and in the
manner prescribed in the applicable enforcement procedure.

703.040.  A purported contractual or other prior waiver of the
exemptions provided by this chapter or by any other statute, other
than a waiver by failure to claim an exemption required to be claimed
or otherwise made at the time enforcement is sought, is against
public policy and void.

703.050.  (a) The determination whether property is exempt or the
amount of an exemption shall be made by application of the exemption
statutes in effect (1) at the time the judgment creditor's lien on
the property was created or (2) if the judgment creditor's lien on
the property is the latest in a series of overlapping liens created
when an earlier lien on the property in favor of the judgment
creditor was in effect, at the time the earliest lien in the series
of overlapping liens was created.
   (b) This section applies to all judgments, whether based upon
tort, contract, or other legal theory or cause of action that arose
before or after the operative date of this section, and whether the
judgment was entered before or after the operative date of this
section.
   (c) Notwithstanding subdivision (a), in the case of a levy of
execution, the procedures to be followed in levying upon, selling, or
releasing property, claiming, processing, opposing, and determining
exemptions, and paying exemption proceeds, shall be governed by the
law in effect at the time the levy of execution is made on the
property.

703.060.  (a) The Legislature finds and declares that generally
persons who enter into contracts do not do so in reliance on an
assumption that the exemptions in effect at the time of the contract
will govern enforcement of any judgment based on the contract, that
liens imposed on property are imposed not as a matter of right but as
a matter of privilege granted by statute for purposes of priority,
that no vested rights with respect to exemptions are created by the
making of a contract or imposition of a lien, that application of
exemptions and exemption procedures in effect at the time of
enforcement of a judgment is essential to the proper balance between
the rights of judgment debtors and judgment creditors and has a
minimal effect on the economic stability essential for the
maintenance of private and public faith in commercial matters, and
that it is the policy of the state to treat all judgment debtors
equally with respect to exemptions and exemption procedures in effect
at the time of enforcement of a money judgment. To this end, the
Legislature reserves the right to repeal, alter, or add to the
exemptions and the procedures therefor at any time and intends,
unless otherwise provided by statute, that any repeals, alterations,
or additions apply upon their operative date to enforcement of all
money judgments, whether based upon tort, contract, or other legal
theory or cause of action that arose before or after the operative
date of the repeals, alterations, or additions, whether the judgment
was entered before or after the operative date of the repeals,
alterations, or additions.
   (b) All contracts shall be deemed to have been made and all liens
on property shall be deemed to have been created in recognition of
the power of the state to repeal, alter, and add to statutes
providing for liens and exemptions from the enforcement of money
judgments.

703.070.  Except as otherwise provided by statute:
   (a) The exemptions provided by this chapter or by any other
statute apply to a judgment for child, family, or spousal support.
   (b) If property is exempt without making a claim, the property is
not subject to being applied to the satisfaction of a judgment for
child, family, or spousal support.
   (c) Except as provided in subdivision (b), if property sought to
be applied to the satisfaction of a judgment for child, family, or
spousal support is shown to be exempt under subdivision (a) in
appropriate proceedings, the court shall, upon noticed motion of the
judgment creditor, determine the extent to which the exempt property
nevertheless shall be applied to the satisfaction of the judgment. In
making this determination, the court shall take into account the
needs of the judgment creditor, the needs of the judgment debtor and
all the persons the judgment debtor is required to support, and all
other relevant circumstances. The court shall effectuate its
determination by an order specifying the extent to which the
otherwise exempt property is to be applied to the satisfaction of the
judgment.

703.080.  (a) Subject to any limitation provided in the particular
exemption, a fund that is exempt remains exempt to the extent that it
can be traced into deposit accounts or in the form of cash or its
equivalent.
   (b) The exemption claimant has the burden of tracing an exempt
fund.
   (c) The tracing of exempt funds in a deposit account shall be by
application of the lowest intermediate balance principle unless the
exemption claimant or the judgment creditor shows that some other
method of tracing would better serve the interests of justice and
equity under the circumstances of the case.

703.090.  If a judgment creditor has failed to oppose a claim of
exemption within the time allowed by Section 703.550 or if property
has been determined by a court to be exempt, and the judgment
creditor thereafter levies upon or otherwise seeks to apply the
property toward the satisfaction of the same money judgment, the
judgment creditor is not entitled to recover the subsequent costs of
collection unless the property is applied to satisfaction of the
judgment.

703.100.  (a) Subject to subdivision (b), the determination whether
property is exempt shall be made under the circumstances existing at
the earliest of the following times:
   (1) The time of levy on the property.
   (2) The time of the commencement of court proceedings for the
application of the property to the satisfaction of the money
judgment.
   (3) The time a lien is created under Title 6.5 (commencing with
Section 481.010) (attachment) or under this title.
   (b) The court, in its discretion, may take into consideration any
of the following changes that have occurred between the time of levy
or commencement of enforcement proceedings or creation of the lien
and the time of the hearing:
   (1) A change in the use of the property if the exemption is based
upon the use of property and if the property was used for the exempt
purpose at the time of the levy or the commencement of enforcement
proceedings or the creation of the lien but is used for a nonexempt
purpose at the time of the hearing.
   (2) A change in the value of the property if the exemption is
based upon the value of property.
   (3) A change in the financial circumstances of the judgment debtor
and spouse and dependents of the judgment debtor if the exemption is
based upon their needs.

703.110.  If the judgment debtor is married:
   (a) The exemptions provided by this chapter or by any other
statute apply to all property that is subject to enforcement of a
money judgment, including the interest of the spouse of the judgment
debtor in community property. The fact that one or both spouses are
judgment debtors under the judgment or that property sought to be
applied to the satisfaction of the judgment is separate or community
does not increase or reduce the number or amount of the exemptions.
Where the property exempt under a particular exemption is limited to
a specified maximum dollar amount, unless the exemption provision
specifically provides otherwise, the two spouses together are
entitled to one exemption limited to the specified maximum dollar
amount, whether one or both of the spouses are judgment debtors under
the judgment and whether the property sought to be applied to the
satisfaction of the judgment is separate or community.
   (b) If an exemption is required by statute to be applied first to
property not before the court and then to property before the court,
the application of the exemption to property not before the court
shall be made to the community property and separate property of both
spouses, whether or not such property is subject to enforcement of
the money judgment.
   (c) If the same exemption is claimed by the judgment debtor and
the spouse of the judgment debtor for different property, and the
property claimed by one spouse, but not both, is exempt, the
exemption shall be applied as the spouses agree. If the spouses are
unable to agree, the exemption shall be applied as directed by the
court in its discretion.

703.115.  In determining an exemption based upon the needs of the
judgment debtor and the spouse and dependents of the judgment debtor
or an exemption based upon the needs of the judgment debtor and the
family of the judgment debtor, the court shall take into account all
property of the judgment debtor and, to the extent the judgment
debtor has a spouse and dependents or family, all property of such
spouse and dependents or family, including community property and
separate property of the spouse, whether or not such property is
subject to enforcement of the money judgment.

703.120.  (a)  Ten years following the operative date of this title
and every 10 years thereafter, the California Law Revision Commission
shall review the exempt amounts provided in this chapter and in
other statutes and recommend to the Governor and the Legislature any
changes in exempt amounts that appear proper.
   (b) Nothing in this section precludes the commission from making
recommendations concerning exempt amounts more frequently than
required by subdivision (a) or from making recommendations concerning
any other aspect of this title, and the commission is authorized to
maintain a continuing review of and submit recommendations concerning
enforcement of judgments.

703.130.  Pursuant to the authority of paragraph (2) of subsection
(b) of Section 522 of Title 11 of the United States Code, the
exemptions set forth in subsection (d) of Section 522 of Title 11 of
the United States Code (Bankruptcy) are not authorized in this state.

703.140.  (a) In a case under Title 11 of the United States Code,
all of the exemptions provided by this chapter, including the
homestead exemption, other than the provisions of subdivision (b) are
applicable regardless of whether there is a money judgment against
the debtor or whether a money judgment is being enforced by execution
sale or any other procedure, but the exemptions provided by
subdivision (b) may be elected in lieu of all other exemptions
provided by this chapter, as follows:
   (1) If a husband and wife are joined in the petition, they jointly
may elect to utilize the applicable exemption provisions of this
chapter other than the provisions of subdivision (b), or to utilize
the applicable exemptions set forth in subdivision (b), but not both.
   (2) If the petition is filed individually, and not jointly, for a
husband or a wife, the exemptions provided by this chapter other than
the provisions of subdivision (b) are applicable, except that, if
both the husband and the wife effectively waive in writing the right
to claim, during the period the case commenced by filing the petition
is pending, the exemptions provided by the applicable exemption
provisions of this chapter, other than subdivision (b), in any case
commenced by filing a petition for either of them under Title 11 of
the United States Code, then they may elect to instead utilize the
applicable exemptions set forth in subdivision (b).
   (3) If the petition is filed for an unmarried person, that person
may elect to utilize the applicable exemption provisions of this
chapter other than subdivision (b), or to utilize the applicable
exemptions set forth in subdivision (b), but not both.
   (b) The following exemptions may be elected as provided in
subdivision (a):
   (1) The debtor's aggregate interest, not to exceed seventeen
thousand four hundred twenty-five dollars ($17,425) in value, in real
property or personal property that the debtor or a dependent of the
debtor uses as a residence, in a cooperative that owns property that
the debtor or a dependent of the debtor uses as a residence, or in a
burial plot for the debtor or a dependent of the debtor.
   (2) The debtor's interest, not to exceed two thousand seven
hundred seventy-five dollars ($2,775) in value, in one motor vehicle.
   (3) The debtor's interest, not to exceed four hundred fifty
dollars ($450) in value in any particular item, in household
furnishings, household goods, wearing apparel, appliances, books,
animals, crops, or musical instruments, that are held primarily for
the personal, family, or household use of the debtor or a dependent
of the debtor.
   (4) The debtor's aggregate interest, not to exceed one thousand
one hundred fifty dollars ($1,150) in value, in jewelry held
primarily for the personal, family, or household use of the debtor or
a dependent of the debtor.
   (5) The debtor's aggregate interest, not to exceed in value nine
hundred twenty-five dollars ($925) plus any unused amount of the
exemption provided under paragraph (1), in any property.
   (6) The debtor's aggregate interest, not to exceed one thousand
seven hundred fifty dollars ($1,750) in value, in any implements,
professional books, or tools of the trade of the debtor or the trade
of a dependent of the debtor.
   (7) Any unmatured life insurance contract owned by the debtor,
other than a credit life insurance contract.
   (8) The debtor's aggregate interest, not to exceed in value nine
thousand three hundred dollars ($9,300), in any accrued dividend or
interest under, or loan value of, any unmatured life insurance
contract owned by the debtor under which the insured is the debtor or
an individual of whom the debtor is a dependent.
   (9) Professionally prescribed health aids for the debtor or a
dependent of the debtor.
   (10) The debtor's right to receive any of the following:
   (A) A social security benefit, unemployment compensation, or a
local public assistance benefit.
   (B) A veterans' benefit.
   (C) A disability, illness, or unemployment benefit.
   (D) Alimony, support, or separate maintenance, to the extent
reasonably necessary for the support of the debtor and any dependent
of the debtor.
   (E) A payment under a stock bonus, pension, profit-sharing,
annuity, or similar plan or contract on account of illness,
disability, death, age, or length of service, to the extent
reasonably necessary for the support of the debtor and any dependent
of the debtor, unless all of the following apply:
   (i) That plan or contract was established by or under the auspices
of an insider that employed the debtor at the time the debtor's
rights under the plan or contract arose.
   (ii) The payment is on account of age or length of service.
   (iii) That plan or contract does not qualify under Section 401(a),
403(a), 403(b), 408, or 408A of the Internal Revenue Code of 1986.
   (11) The debtor's right to receive, or property that is traceable
to, any of the following:
   (A) An award under a crime victim's reparation law.
   (B) A payment on account of the wrongful death of an individual of
whom the debtor was a dependent, to the extent reasonably necessary
for the support of the debtor and any dependent of the debtor.
   (C) A payment under a life insurance contract that insured the
life of an individual of whom the debtor was a dependent on the date
of that individual's death, to the extent reasonably necessary for
the support of the debtor and any dependent of the debtor.
   (D) A payment, not to exceed seventeen thousand four hundred
twenty-five dollars ($17,425), on account of personal bodily injury,
not including pain and suffering or compensation for actual pecuniary
loss, of the debtor or an individual of whom the debtor is a
dependent.
   (E) A payment in compensation of loss of future earnings of the
debtor or an individual of whom the debtor is or was a dependent, to
the extent reasonably necessary for the support of the debtor and any
dependent of the debtor.

703.150.  (a) On April 1, 2004, and at each three-year interval
ending on April 1 thereafter, the dollar amounts of exemptions
provided in subdivision (b) of Section 703.140 in effect immediately
before that date shall be adjusted as provided in subdivision (d).
   (b) On April 1, 2007, and at each three-year interval ending on
April 1 thereafter, the dollar amounts of exemptions provided in
Article 3 (commencing with Section 704.010) in effect immediately
before that date shall be adjusted as provided in subdivision (d).
   (c) On April 1, 2010, and at each three-year interval ending on
April 1 thereafter, the Judicial Council shall submit to the
Legislature the amount by which the dollar amounts of exemptions
provided in subdivision (a) of Section 704.730 in effect immediately
before that date may be increased as provided in subdivision (d).
Those increases shall not take effect unless they are approved by the
Legislature.
   (d) The Judicial Council shall determine the amount of the
adjustment based on the change in the annual California Consumer
Price Index for All Urban Consumers, published by the Department of
Industrial Relations, Division of Labor Statistics, for the most
recent three-year period ending on December 31 preceding the
adjustment, with each adjusted amount rounded to the nearest
twenty-five dollars ($25).
   (e) Beginning April 1, 2004, the Judicial Council shall publish a
list of the current dollar amounts of exemptions provided in
subdivision (b) of Section 703.140 and in Article 3 (commencing with
Section 704.010), together with the date of the next scheduled
adjustment. In any year that the Legislature votes to increase the
exemptions provided in subdivision (a) of Section 704.730, the
Judicial Council shall publish a list of current dollar amounts of
exemptions.
   (f) Adjustments made under subdivision (a) do not apply with
respect to cases commenced before the date of the adjustment, subject
to any contrary rule applicable under the federal Bankruptcy Code.
The applicability of adjustments made under subdivisions (b) and (c)
is governed by Section 703.050.