§ 703.140.Applicability of Exemption In Case Under Title 11 of United States Code

Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 1. General Provisions · Last amended 2023 · Last verified July 28, 2026

In one sentenceSection 703.140 lets a bankruptcy debtor use this chapter's regular exemptions, including the homestead exemption, or elect instead a separate list of California's own bankruptcy-only exemptions modeled on the federal exemptions, covering a residence, a vehicle, household goods, tools of the trade, certain insurance and benefit payments, and a catch-all amount, with joint filers required to choose one set for both spouses.

Full Text of § 703.140

Text sizeJump to: (a) (b) (c)

(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 spouses 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)

(A) If the petition is filed individually, and not jointly, for a spouse, the exemptions provided by this chapter other than the provisions of subdivision (b) are applicable, except that, if both of the spouses 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).

(B) Notwithstanding subparagraph (A), a waiver is not required from a debtor who is living separate and apart from their spouse as of the date the petition commencing the case under Title 11 of the United States Code is filed, unless, on the petition date, the debtor and the debtor's spouse shared an ownership interest in property that could be exempted as a homestead under Article 4 of this chapter.

(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 twenty-nine thousand two hundred seventy-five dollars ($29,275) 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.

(2) The debtor's interest, not to exceed seven thousand five hundred dollars ($7,500) in value, in one or more motor vehicles.

(3) The debtor's interest, not to exceed seven hundred twenty-five dollars ($725) 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 seven hundred fifty dollars ($1,750) 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 one thousand five hundred fifty dollars ($1,550) in value, plus any unused amount of the exemption provided under paragraph (1), in any property.

(6) The debtor's aggregate interest, not to exceed eight thousand seven hundred twenty-five dollars ($8,725) 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 fifteen thousand six hundred fifty dollars ($15,650) in value, 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, the debtor's spouse, or a dependent of the debtor, including vehicles converted for use by the debtor, the debtor's spouse, or a dependent of the debtor, who has a disability. Conversion of a vehicle for use by a person who has a disability includes altering the interior, installing steering, a wheelchair lift, or motorized steps, or modifying the operation of the vehicle.

(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.

(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.

(F) The aggregate interest, not to exceed seven thousand five hundred dollars ($7,500), in vacation credits or accrued, or unused, vacation pay, sick leave, family leave, or wages, as defined in Section 200 of the Labor Code.

(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 under a settlement agreement arising out of or regarding the debtor's employment, to the extent reasonably necessary for the support of the debtor, the debtor's spouse, or a dependent of the debtor.

(C) 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.

(D) A payment under a life insurance contract that insured the life of an individual of whom the debtor was a spouse or 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.

(E) A payment, not to exceed twenty-nine thousand two hundred seventy-five dollars ($29,275) on account of personal bodily injury of the debtor, the debtor's spouse, or an individual of whom the debtor is a dependent.

(F) A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a spouse or dependent, to the extent reasonably necessary for the support of the debtor and the debtor's spouse or a dependent of the debtor.

(12) Money held in an account owned by the judgment debtor and established pursuant to the Golden State Scholarshare Trust Act (Article 19 (commencing with Section 69980) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code), subject to the following limits:

(A) The amount exempted for contributions to an account during the 365-day period prior to the date of filing of the debtor's petition for bankruptcy, in the aggregate during this period, shall not exceed the amount of the annual gift tax exclusion under Section 2503(b) of the Internal Revenue Code of 1986, as amended, in effect at the time of the filing of the debtor's petition for bankruptcy.

(B) The amount exempted for contributions to an account during the period commencing 730 days prior to and ending 366 days prior to the date of filing of the debtor's petition for bankruptcy, in the aggregate during this period, shall not exceed the amount of the annual gift tax exclusion under Section 2503(b) of the Internal Revenue Code of 1986, as amended, in effect at the time of the filing of the debtor's petition for bankruptcy.

(D) This paragraph is not subject to the requirements of Section 703.150.

(c) In a case under Title 11 of the United States Code, the value of the property claimed as exempt and the debtor's exemptions provided by this chapter with respect to such property shall be determined as of the date the bankruptcy petition is filed. In a case where the debtor's equity in a residence is less than or equal to the amount of the debtor's allowed homestead exemption as of the date the bankruptcy petition is filed, any appreciation in the value of the debtor's interest in the property during the pendency of the case is exempt.

End

Plain-English Summary

Bankruptcy changes what property a debtor can protect, and this section is where California spells out the choice. Subdivision (a) says that in a bankruptcy case, all of this chapter's ordinary exemptions apply regardless of whether there's a money judgment or an execution sale underway — but a debtor can elect to use the separate list in subdivision (b) instead of those ordinary exemptions. Spouses filing a joint petition have to make that election together, choosing one system or the other for both of them; spouses filing separately generally keep the ordinary exemptions unless both waive their right to those exemptions in writing, and an unmarried debtor can choose either system.

Subdivision (b)'s list runs closely parallel to the federal bankruptcy exemption list Congress makes available in states that don't opt out — dollar-capped interests in a residence, a motor vehicle, household furnishings and personal effects, jewelry, tools of the trade, unmatured life insurance, and a catch-all amount that can be combined with unused residence-exemption room. It also protects certain benefit payments — social security, veterans', disability, and support payments — along with personal-injury and wrongful-death recoveries and future-earnings replacement, each to the extent reasonably necessary for support, and money in a Golden State Scholarshare Trust Act account up to specified contribution limits.

Subdivision (c) fixes the valuation date at the bankruptcy petition's filing date, and gives a debtor whose home equity doesn't exceed the homestead exemption amount at filing the benefit of any increase in that equity's value while the case is pending.

Frequently Asked Questions

Do bankruptcy debtors in California have to use this chapter's ordinary exemptions?

No. Section 703.140(a) lets a debtor elect the separate bankruptcy-specific exemptions in subdivision (b) instead, though not both.

What kinds of property does the subdivision (b) list cover?

Capped interests in a residence, a motor vehicle, household goods, jewelry, tools of the trade, life insurance, a catch-all amount, various benefit and support payments, personal-injury and wrongful-death recoveries, and Golden State Scholarshare Trust Act accounts, among others.

Can spouses filing bankruptcy together each pick a different exemption system?

No. Spouses joined in one petition must jointly choose either the ordinary exemptions or the subdivision (b) list for both of them.

What if only one spouse files for bankruptcy?

That spouse generally keeps the ordinary exemptions unless both spouses waive, in writing, their right to those exemptions during the pending case — with an exception for spouses already living separately who don't share a homestead interest.

As of what date is a debtor's exemption value measured?

The date the bankruptcy petition is filed, under § 703.140(c), which also protects post-filing appreciation in a residence when the debtor's equity at filing was within the homestead exemption amount.

Amendment History

Amended by Stats 2022 ch 716 (SB 1099),s 2.5, eff. 1/1/2023. Amended by Stats 2022 ch 25 (SB 956),s 1, eff. 1/1/2023. Amended by Stats 2021 ch 124 (AB 938),s 10, eff. 1/1/2022. Amended by Stats 2020 ch 81 (SB 898),s 1, eff. 1/1/2021. Amended by Stats 2016 ch 50 (SB 1005),s 16, eff. 1/1/2017. Amended by Stats 2012 ch 678 (AB 929),s 1, eff. 1/1/2013. Amended by Stats 2003 ch 379 (AB 182),s 3, eff. 1/1/2004. Amended by Stats 2001 ch 42 (AB 1704), s 1, eff. 1/1/2002. Amended by Stats 2000 ch 135 (AB 2539), s 15, eff. 1/1/2001. Previously Amended July 13, 1999 (Bill Number: SB 469) (Chapter 98).

Source & verification. Section text is reproduced verbatim from the California Legislative Information. Enacted by the California Legislature. Last verified July 28, 2026. · Official source

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