Article 2 - Procedure for Claiming Exemptions After Levy

California Code of Civil Procedure — §§ 703.510-703.610

Sections (11)

Amended by Stats. 2024, Ch. 514, Sec. 3. (AB 2837) Effective January 1, 2025.

(a)Except as otherwise provided by statute, property that has been levied upon may be claimed to be exempt as provided in this article.

(b)If property in a deposit account that is exempt without making a claim, as described in subdivision (b) of Section 704.080 or subdivision (a) of Section 704.220, is levied upon, the property shall be released by the financial institution holding the judgment debtor’s deposit account within five business days of the financial institution receiving written notice from the judgment debtor setting forth the facts

supporting the exemption without the necessity of making a claim under this title. The judgment debtor’s written notice to the financial institution shall be served via first-class mail on the judgment creditor or judgment creditor’s attorney of record within five business days of notice being sent by the judgment debtor to the financial institution. The written notice shall be addressed to the financial institution identified pursuant to

subdivision (c) or (d) of Section 684.110.

(c)If property that is exempt without making a claim is levied upon, other than the property in a deposit account described in subdivision (b),

the property may be released pursuant to the exemption procedure provided in this article.

§ 703.520

Amended by Stats. 2025, Ch. 708, Sec. 4. (AB 774) Effective January 1, 2026.

(a)The claimant may make a claim of exemption by filing with the levying officer, either in person or by mail, a claim of exemption together with a copy of the claim. If the claimant is personally served, the claim shall be made within 15 days after the date the notice of levy on the property claimed to be exempt is served on the judgment debtor. If the claimant is served by mail, the claim shall be made within 20 days after the date the notice of levy on the property claimed to be exempt is served on the judgment debtor. If the claim is filed by mail and assigned a tracking number by the United States Postal Service or another common carrier, the filing shall be deemed complete on the date the claim is postmarked. If the claim is filed by mail and not assigned a tracking number, the filing shall be deemed complete on the date

the claim is received by the levying officer.

(b)The claim of exemption shall be executed under oath and shall include all of the following:

(1)The name of the claimant and the mailing address where service of a notice of opposition to the claim may be made upon the claimant.

(2)The name and last known address of the judgment debtor if the claimant is not the judgment debtor.

(3)A description of the property claimed to be exempt. If an exemption is claimed pursuant to Section 704.010 or 704.060, the claimant shall describe all other property of the same type, including exempt proceeds of the property of the same type, owned by the judgment debtor alone or in combination with others on the date of levy and identify the property, whether or not levied

upon, to which the exemption is to be applied. If an exemption is claimed pursuant to subdivision (b) of Section 704.100, the claimant shall state the nature and amount of all other property of the same type owned by the judgment debtor or the spouse of the judgment debtor alone or in combination with others on the date of levy.

(4)A financial statement if required by Section 703.530.

(5)A citation of the provision of this chapter or other statute upon which the claim is based.

(6)A statement of the facts necessary to support the claim.

(c)Notwithstanding subdivision (a), for a personal debt as defined in subdivision (d) of Section 683.110, a claimant may file a claim of exemption more than 20 days after the date the notice of levy is served on the

judgment debtor pursuant to Sections 703.580 and 706.105. The levying officer may, nonetheless, release the funds to the judgment creditor at any time after the expiration of the 20-day period.

§ 703.530

Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.

(a)If property is claimed as exempt pursuant to a provision exempting property to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor, the claim of exemption shall include a financial statement.

(b)The financial statement shall include all of the following information:

(1)The name of the spouse of the judgment debtor.

(2)The name, age, and relationship of all persons

dependent upon the judgment debtor or the spouse of the judgment debtor for support.

(3)All sources and the amounts of earnings and other income of the judgment debtor and the spouse and dependents of the judgment debtor.

(4)A list of the assets of the judgment debtor and the spouse and dependents of the judgment debtor and the value of such assets.

(5)All outstanding obligations of the judgment debtor and the spouse and dependents of the judgment debtor.

(c)The financial statement shall be executed under oath by the judgment debtor and, unless the spouses are living separate and apart, by the spouse of the judgment debtor.

§ 703.540

Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.

Promptly after the filing of the claim of exemption, the levying officer shall serve both of the following on the judgment creditor personally or by mail:

(a)A copy of the claim of exemption.

(b)A notice of claim of exemption stating that the claim of exemption has been made and that the levying officer will release the property unless, within the time allowed as specified in the notice, both of the following are filed with the levying officer:

(1)A copy

of the notice of opposition to the claim of exemption.

(2)A copy of the notice of motion for an order determining the claim of exemption.

§ 703.550

Repealed (in Sec. 5) and added by Stats. 2019, Ch. 552, Sec. 6. (SB 616) Effective January 1, 2020. Section operative September 1, 2020, by its own provisions.

(a)Within 15 days after service of the notice of claim of exemption, a judgment creditor who opposes the claim of exemption shall file with the court a notice of opposition to the claim of exemption and a notice of motion for an order determining the claim of exemption and shall file with the levying officer a copy of the notice of opposition and a copy of the notice of motion. Upon the filing of the copies of the notice of opposition and notice of motion, the levying officer shall promptly file the claim of exemption with the court. If copies of the notice of opposition and notice of motion are not filed with the levying officer within the time allowed, the levying officer shall immediately release the property

to the extent it is claimed to be exempt.

(b)This section shall become operative on September 1, 2020.

§ 703.560

Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.

The notice of opposition to the claim of exemption shall be executed under oath and shall include both of the following:

(a)An allegation either (1) that the property is not exempt under the provision of this chapter or other statute relied upon or (2) that the equity in the property claimed to be exempt is in excess of the amount provided in the applicable exemption.

(b)A statement of the facts necessary to support the allegation.

§ 703.570

Amended by Stats. 2025, Ch. 708, Sec. 5. (AB 774) Effective January 1, 2026.

(a)(1) The hearing on the motion shall be held not later than 30 days from the date the notice of motion was filed with the court unless continued by the court for good cause. Where the judgment upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, if the hearing is delayed by the court and cannot be set within 30 days of notice of the motion, a party may seek by ex parte application, and the court shall issue, an order staying any levy or garnishment with respect to the property subject to the claim of exemption until the hearing occurs.

(2)The filing of an ex parte application under this section is not a general appearance and shall not constitute a waiver of the right to bring a motion

under Section 418.10.

(b)Not less than 10 days prior to the hearing, the judgment creditor shall serve a notice of the hearing and a copy of the notice of opposition to the claim of exemption on the claimant and on the judgment debtor, if other than the claimant. Service shall be made personally or by mail.

§ 703.580

Amended by Stats. 2024, Ch. 514, Sec. 5.5. (AB 2837) Effective January 1, 2025.

(a)The claim of exemption and notice of opposition to the claim of exemption do not constitute an appearance pursuant to Section 1014. The power of the court over the exemption claimant is limited to determining the claim of exemption.

(b)At a hearing under this section, the exemption claimant has the burden of proof.

(c)The claim of exemption is deemed controverted by the notice of opposition to the claim of exemption and both shall be received in evidence. If no other evidence is offered, the court, if satisfied that sufficient facts are shown by the claim of exemption (including the financial statement if one is required) and the notice of opposition, may make its determination thereon. If a claim of exemption asserts that money in a judgment debtor’s deposit account is or was necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor as provided in Section 704.225, the court shall review the judgment debtor’s financial statement and make findings thereon. If

not satisfied, the court

may order the hearing continued for the production of other evidence, oral or documentary.

(d)At the conclusion of the hearing, the court shall determine by order whether or not the property is exempt in whole or in part.

(1)Subject to Section 703.600, the order is determinative of the right of the judgment creditor to apply the property to the satisfaction of the judgment.

(2)Where the judgment

upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, the court shall order the return of any property that was exempt without the need for a claim and that was levied upon within the 12 months preceding the date of the order on the claim of exemption. This paragraph does not limit a judge’s authority to order, for good cause, the return of any exempt property taken more than 12 months preceding the date of the order on the claim of exemption.

(3)Where the judgment upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, the court shall order the return of any property that the debtor has demonstrated would have been exempt by claim of exemption and that was levied upon within the six months preceding the date of the order on the claim of exemption. This paragraph does not limit a judge’s authority to order, for good cause, the return of any exempt

property taken more than six months preceding the date of the order on the claim of exemption.

(4)If property is exempt without the need for a claim under this title or as a result of a claim of exemption, the court shall order the return of the exempt property from the levying officer, judgment creditor, or other person who is in possession of the property, to the judgment debtor. A levying officer shall return the exempt property within 20 business days of receipt of notice of the order. A judgment creditor shall return the exempt property within 10 business days of entry of the order.

(e)The court clerk shall promptly transmit a certified copy of the order to the levying officer. Subject to Section 703.610, the levying officer shall, in compliance with the order, release the property or apply the property to the satisfaction of the money judgment.

(f)Unless otherwise ordered by the court, if an exemption is not determined within the time provided by Section 703.570, the property claimed to be exempt shall be released.

§ 703.590

Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.

If the court extends the time allowed for an act to be done under this article, written notice of the extension shall be filed with the levying officer and, unless notice is waived, shall be served promptly on the opposing party. Service shall be made personally or by mail.

§ 703.600

Amended by Stats. 1998, Ch. 931, Sec. 93. Effective September 28, 1998.

An appeal lies from any order made under this article.

§ 703.610

Amended by Stats. 2024, Ch. 514, Sec. 6. (AB 2837) Effective January 1, 2025.

(a)Except as otherwise provided by statute or ordered by the court, the levying officer shall not release, sell, or otherwise dispose of the property for which an exemption is claimed until an appeal is waived, the time to file an appeal has expired, or the exemption is finally determined.

(b)At any time while the exemption proceedings are pending, upon motion of the judgment creditor or a claimant, or upon its own motion, the court may make any orders for disposition of the property that may be proper under the circumstances of the case, except that such order may not require the release to the judgment creditor of property that would be exempt

without a claim of exemption. The order may be modified or vacated by the court at any time during the pendency of the exemption proceedings upon any terms that are just, except that such order may not require the release to the judgment creditor of property that would be exempt without a claim of exemption.

(c)If an appeal of the determination of a claim of exemption is taken, notice of the appeal shall be given to the levying officer and the levying officer shall hold, release, or dispose of the property in accordance with the provisions governing enforcement and stay of enforcement of money judgments pending appeal. Where the judgment upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, if an earnings withholding order has been served upon the judgment debtor’s employer, notice of

the appeal shall also be given to the judgment debtor’s employer who shall, upon receipt of the notice, immediately suspend any further garnishment of the judgment debtor’s wages for the pendency of the appeal and until ordered by the court to resume garnishment.