Debt Collection Laws in California

California caps wage garnishment for consumer debt, protects a base amount of home equity and bank funds from creditors, and sets a statute of limitations after which a debt lawsuit generally can't succeed. Data current as of July 2026 — see sourcing per section below.

How much of my paycheck can be garnished in California?

California caps wage garnishment for ordinary consumer debt at the lesser of 20% of disposable earnings, or 40% of the amount by which weekly disposable earnings exceed 48 times the applicable minimum wage (state or, if higher, the local minimum wage where the debtor works). This is stricter than the federal formula and was tightened by SB 1477, effective September 2022.

Before SB 1477, California used the same 25%-of-disposable-earnings federal formula most states default to. The 2022 change ties the protected floor to local minimum wage rather than the (lower) federal minimum wage, which matters a lot in California cities with $18-20+/hour minimum wages — the higher the local minimum wage, the more of a paycheck is shielded from garnishment.

For pay periods other than weekly, the earnings-exemption threshold scales: multiply the applicable hourly minimum wage by 96 for biweekly pay, 104 for semimonthly, or 208 for monthly. Child support, spousal support, and federal tax and student loan garnishments are not subject to this state cap — those follow separate federal or family-law rules with higher withholding limits.

• Cal. Code Civ. Proc. § 706.050

Can a creditor take money from my bank account in California?

California automatically exempts a base amount of funds in a debtor's bank account from levy without requiring a claim, under CCP § 704.220 — the exact dollar figure is indexed annually each July 1 and should be checked against the current Judicial Council EJ-156 form rather than assumed. A separate wildcard exemption under CCP § 703.140(b)(5) can also apply to bank funds if a debtor doesn't claim a homestead exemption.

The § 704.220 exemption is tied to the state's 'minimum basic standard of adequate care' for a family of four and adjusts every July 1 — the figure has moved from roughly $1,788 to $2,244 in recent adjustment cycles, so a number printed today can be stale within a year. The safest practice on this page is to link the live Judicial Council form rather than hard-code a dollar amount.

If a debtor doesn't file a homestead declaration, CCP § 703.140(b)(5)'s wildcard exemption (a general-purpose 'any property' exemption, roughly $1,900-$2,000 plus any unused homestead allowance in recent cycles) can also be applied to protect bank funds — this requires an affirmative claim in response to a levy, it isn't automatic like § 704.220.

• Cal. Code Civ. Proc. § 704.220
• Judicial Council Form EJ-156 (current exemption amounts)

Is my home protected from creditors in California?

California's homestead exemption protects home equity from forced sale up to the greater of $300,000 or the countywide median sale price for a single-family home in the prior year, capped at $600,000 — both figures adjust annually for inflation. It applies automatically to a primary residence; no separate declaration is required to get the base protection, though recording a formal homestead declaration can add other protections.

This formula (Cal. Code Civ. Proc. § 704.730, as amended by SB 1524 effective January 1, 2025) replaced California's older flat-dollar homestead tiers with a floor-and-ceiling structure tied to local home prices — a homeowner in a high-cost county gets closer to the $600,000 cap, while a homeowner in a lower-cost county gets closer to the $300,000 floor.

Both the floor and cap are inflation-indexed each January 1, so the effective 2026 numbers run higher than the statutory base figures — check the current Judicial Council inflation-adjustment table for the exact figure in effect rather than relying on the $300,000/$600,000 base amounts alone.

• Cal. Code Civ. Proc. § 704.730

How long can a debt collector sue me in California?

California's statute of limitations on consumer debt is 4 years for written contracts (credit cards, promissory notes) under CCP § 337, and 2 years for oral or open-book contracts under CCP § 339. Once the clock expires, a creditor generally can't win a lawsuit to collect — but the debt doesn't disappear, and it can still be reported to credit bureaus or attempted to be collected outside of court.

A partial payment alone does not restart California's limitations clock. Under CCP § 360, reviving an expired debt requires a new written, signed acknowledgment or promise to pay — a verbal promise or a payment without that written acknowledgment is not enough. This is a meaningful consumer protection that's easy to get wrong when researching 'does paying an old debt restart the clock.'

• Cal. Code Civ. Proc. § 337
• Cal. Code Civ. Proc. § 339
• Cal. Code Civ. Proc. § 360

Does California have its own debt collection law beyond the federal FDCPA?

California's Rosenthal Fair Debt Collection Practices Act (Civil Code §§ 1788-1788.33) extends federal FDCPA-style protections to original creditors collecting their own debts, not just third-party collectors and debt buyers — a meaningfully broader scope than federal law alone provides.

Under the Rosenthal Act, a collector who violates the rules must notify a consumer, in the first written communication after the statute of limitations has expired, that the debt is time-barred. Consumers can sue for actual damages plus attorney's fees, with a 1-year window to bring a claim after the violation.

• Cal. Civ. Code § 1788 et seq.

Where can I find free or low-cost legal help in California?

California residents dealing with a debt lawsuit, garnishment, or collector dispute can start with the state bar's lawyer referral service or a legal aid organization below — both can point to self-help court resources even for people who don't qualify for free representation.

• State Bar of California — Lawyer Referral Service
• State Bar of California — Free & Low-Cost Legal Help