§ 1801.Exempt Property

Title 11.7. Recovery of Preferences and Exempt Property in an Assignment for the Benefit of Creditors · Last amended 1983 · Last verified July 29, 2026

In one sentenceSection 1801 lets an individual assignor in a general assignment for the benefit of creditors choose between the standard state judgment-debtor exemptions or a separate list of dollar-capped exemptions covering a home, vehicle, household goods, tools of the trade, insurance, and various benefit payments.

Full Text of § 1801

Text sizeJump to: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)

In any general assignment for the benefit of creditors (as defined in Section 493.010), the assignor, if an individual, may choose to retain as exempt property either the property which is otherwise exempt under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 or, in the alternative, the following property:

(a) The assignor's aggregate interest, not to exceed seven thousand five hundred dollars ($7,500) in value, in real property or personal property that the assignor or a dependent of the assignor uses as a residence, in a cooperative that owns property that the assignor or a dependent of the assignor uses as a residence, or in a burial plot for the assignor or a dependent of the assignor.

(b) The assignor's interest, not to exceed one thousand two hundred dollars ($1,200) in value, in one motor vehicle.

(c) The assignor's interest, not to exceed two hundred dollars ($200) 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 assignor or a dependent of the assignor.

(d) The assignor's aggregate interest, not to exceed five hundred dollars ($500) in value, in jewelry held primarily for the personal, family, or household use of the assignor or a dependent of the assignor.

(e) The assignor's aggregate interest, not to exceed in value four hundred dollars ($400) plus any unused amount of the exemption provided under subdivision (a), in any property.

(f) The assignor's aggregate interest, not to exceed seven hundred fifty dollars ($750) in value, in any implements, professional books, or tools, of the trade of the assignor or the trade of a dependent of the assignor.

(g) Any unmatured life insurance contract owned by the assignor, other than a credit life insurance contract.

(h) The assignor's aggregate interest, not to exceed in value four thousand dollars ($4,000) in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the assignor under which the insured is the assignor or an individual of whom the assignor is a dependent.

(i) Professionally prescribed health aids for the assignor or a dependent of the assignor.

(j) The assignor's right to receive any of the following:

(1) A social security benefit, unemployment compensation, or a local public assistance benefit except that this paragraph does not preclude the application of Section 1255.7 of the Unemployment Insurance Code.

(2) A veterans' benefit.

(3) A disability, illness, or unemployment benefit except that this paragraph does not preclude the application of Section 1255.7 of the Unemployment Insurance Code.

(4) Alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the assignor and any dependent of the assignor.

(5) 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 assignor and any dependent of the assignor, unless:

(i) The plan or contract was established by or under the auspices of an employer of which the assignor was a partner, officer, director or controlling person at the time the assignor's rights under the plan or contract arose;

(ii) The payment is on account of age or length of service; and

(iii) Such plan or contract does not qualify under Section 401(a), 403(a), 403(b), 408, or 409 of the Internal Revenue Code of 1954 (26 U.S.C.401(a), 403(a), 403(b), 408, or 409).

(k) The assignor's right to receive, or property that is traceable to any of the following:

(1) An award under a crime victim's reparation law.

(2) A payment on account of the wrongful death of an individual of whom the assignor was a dependent, to the extent reasonably necessary for the support of the assignor and any dependent of the assignor.

(3) A payment under a life insurance contract that insured the life of an individual of whom the assignor was a dependent on the date of such individual's death, to the extent reasonably necessary for the support of the assignor and any dependent of the assignor.

(4) A payment, not to exceed seven thousand five hundred dollars ($7,500), on account of personal bodily injury, as compensation for pain and suffering or actual pecuniary loss (other than loss of future earnings), of the assignor or an individual of whom the assignor is a dependent.

(5) A payment in compensation of loss of future earnings of the assignor or an individual of whom the assignor is or was a dependent, to the extent reasonably necessary for the support of the assignor and any dependent of the assignor.

In this section, "dependent" includes spouse, whether or not actually dependent, "assignor" means each spouse, if the assignment is made by a married couple, and "value" means fair market value as of the date of the making of the assignment.

End

Plain-English Summary

When someone makes a general assignment for the benefit of creditors, some property still belongs to that person rather than to the pool available for creditors, and Section 1801 lets an individual assignor pick which set of rules defines that protected property. The first option is the standard exemption scheme judgment debtors already use elsewhere in this code. The second, and the one this section spells out in detail, is a self-contained list built around fixed dollar caps, modeled on the exemption menu federal bankruptcy law offers as an alternative to state exemptions.

That alternative list covers the categories that come up in most households: a home or burial plot up to $7,500, one motor vehicle up to $1,200, household goods and personal items up to $200 per item, jewelry up to $500, tools of the trade up to $750, unmatured life insurance and up to $4,000 of its cash value, prescribed health aids, and a wildcard exemption of $400 plus any unused portion of the homestead amount. It also protects a list of income streams and payments: social security, unemployment, and veterans' benefits, disability and support payments, qualifying pension and retirement payments, crime victim awards, wrongful death proceeds, life insurance death benefits, and personal injury and lost-earnings payments, each tied to what a dependent reasonably needs for support. The assignor chooses one system or the other, not a mix of both.

Frequently Asked Questions

Does an individual assignor have to use the exemptions in this section?

No. Section 1801 lets the assignor choose between the standard judgment-debtor exemptions elsewhere in this code or this section's separate list of dollar-capped exemptions.

What's the exemption amount for a home or residence under this section?

Up to $7,500 in the assignor's aggregate interest in a residence, cooperative housing interest, or burial plot.

Are retirement and pension payments protected under this alternative scheme?

Generally yes, to the extent reasonably necessary for the assignor's and any dependent's support, with some exceptions tied to plans an employer-affiliated assignor controlled.

Can an assignor mix exemptions from both lists?

No. The choice is between the standard state exemptions or this section's alternative list, not a combination of both.

Amendment History

Amended by Stats. 1983, Ch. 155, Sec. 23. Effective June 30, 1983. Operative July 1, 1983, by Sec. 32 of Ch. 155.

Source & verification. Section text is reproduced verbatim from the California Legislative Information. Enacted by the California Legislature. Last verified July 29, 2026. · Official source

Also known as: exempt property general assignment californiaassignment for benefit of creditors exemption list