California Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside California's Statutes Of Limitations. California phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The California Fair Debt Collection Consumer Practices Guide summarizes California's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
California Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under California’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under California Debt Exemption Law!
California Statutes
California has opted out of federal bankruptcy exemptions. California
Civil Procedure Code § 703.130.
Wages: California Civil Procedure Code §§ 704.050, .051, 052, .070.
Homestead: California Civil Procedure Code §§ 487.025, 703.110, .040,
704.710 through .730.
Tangible personal property: California Civil Procedure Code §§ 703.110,
and .040, 704.010 through .070.
Benefits, retirement plans, insurance, judgments, and other intangibles:
California Civil Procedure Code §§ 703.080 and 704.070
California Debt Statutes of Limitation
Your debt may have expired under California’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the California Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
California Debt Statutes of Limitation
Written agreements: 4 years, calculated from the date of breach.
Oral agreements: 2 years.
The statute of limitation is stopped only if the debtor makes a payment on the account after the expiration of the applicable limitations period.
California Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under California’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under California law.
California Wage Garnishment Procedural Requirements
At any time after delivery of a writ of execution to a levying officer and before its return, a person indebted to the judgment debtor may pay to the levying officer the amount of the debt or so much thereof as is necessary to satisfy the money judgment. The levying officer shall give a receipt for the amount paid and such receipt is a discharge for the amount paid. Cal. Civil. Procedure. Code _ 699.020.
A registered process server may levy under a writ of execution on deposit accounts. Before levying under the writ of execution, the registered process server shall deposit a copy of the writ with the levying officer and pay the fee provided by _ 26721 of the Government Code ($20). Cal. Civil. Procedure. Code _ 699.080.
After entry of a money judgment, a writ of execution shall be issued by the clerk of the court upon application of the judgment creditor and shall be directed to the levying officer in the county where the levy is to be made and to any registered process server. A separate writ shall be issued for each county where a levy is to be made. Writs may be issued successively until the money judgment is satisfied, except that a new writ may not be issued for a county until the expiration of 180 days after the issuance of a prior writ for that county unless the prior writ is first returned. Cal. Civil. Procedure. Code _ 699.510.
The writ of execution shall require the levying officer to whom it is directed to enforce the money judgment and shall include the following information: The date of issuance of the writ. The title of the court where the judgment is entered and the cause and number of the action. The name and address of the judgment creditor and the name and last known address of the judgment debtor. The date of the entry of the judgment and of any subsequent renewals and where entered in the records of the court. The total amount of the money judgment as entered or renewed, together with costs and the accrued interest on the judgment from the date of entry or renewal of the judgment to date of issuance of the writ, reduced by any partial satisfactions and by any amounts no longer enforceable. The amount required to satisfy the money judgment on the date the writ is issued. The amount of interest accruing daily on the principal amount of the judgment from the date the writ is issued. Whether any person has requested notice of sale under the judgment and, if so, the name and mailing address of such person. Cal. Civil. Procedure. Code _ 699.520.
Upon delivery of the writ of execution to the levying officer to whom the writ is directed, together with the written instructions of the judgment creditor, the levying officer shall execute the writ in the manner prescribed by law. The levying officer may not levy upon any property under the writ after the expiration of 180 days from the date the writ was issued. Cal. Civil. Procedure. Code _ 699.530.
The notice of levy shall inform the person notified of all of the following: The capacity in which the person is notified. The property that is levied upon. The person's rights under the levy, including the right to claim an exemption and the right to make a third-party claim. The person's duties under the levy. Cal. Civil. Procedure. Code _ 699.540. At the time of levy, the levying officer shall serve, either personally or by mail, a copy of the writ of execution, a notice of levy and, if the judgment debtor is a natural person, a copy of the form listing exemptions. Cal. Civil. Procedure. Code _ 700.010.
Subject to Section 700.160, to levy upon a deposit account, the levying officer shall personally serve a copy of the writ of execution and a notice of levy on the financial institution with which the deposit account is maintained. The execution lien reaches only amounts in the deposit account at the time of service on the financial institution (including any item in the deposit account that is in the process of being collected unless the item is returned unpaid to the financial institution). At the time of levy or promptly thereafter, the levying officer shall serve a copy of the writ of execution and a notice of levy on any third person in whose name the deposit account stands. Service shall be made personally or by mail. During the time the execution lien is in effect, the financial institution shall not honor a check or other order for the payment of money drawn against, and shall not pay a withdrawal from, the deposit account that would reduce the deposit account to an amount less than the amount levied upon. When the amount levied upon pursuant to this section is paid to the levying officer, the execution lien on the deposit account levied upon terminates. Cal. Civil. Procedure. Code _ 700.140. A deposit account in the name of a person other than the judgment debtor, either alone or together with other third persons, is not subject to levy under _ 700.140 unless the levy is authorized by court order.
A court order is not required as a prerequisite to levy on a deposit account in the name of the judgment debtor, whether alone or together with third persons, or the judgment debtor's spouse, whether alone or together with other third persons. An affidavit showing that the person in whose name the account stands is the judgment debtor's spouse shall be delivered to the financial institution at the time of levy. In any case where a deposit account in the name of a person other than the judgment debtor, whether alone or together with the judgment debtor, is levied upon, the financial institution shall not pay to the levying officer the amount levied upon until being notified to do so by the levying officer. The levying officer may not require the financial institution to pay the amount levied upon until the expiration of 15 days after service of notice of levy on the third person. Cal. Civil. Procedure. Code _ 700.160.
Interest Rate at which Judgments Accrue At the rate of 10 percent per annum on the principal amount of a money judgment remaining unsatisfied. Cal. Civil. Procedure. Code _ 685.010. Interest commences to accrue on a money judgment on the date of entry of the judgment. However, if a money judgment is payable in installments, interest commences to accrue as to each installment on the date the installment becomes due. Cal. Civil. Procedure. Code _ 685.020.
California (Debt Collector) Call Recording Law
Under California State and Federal Call Recording Laws, you could record the actual recorded conversation with a debt collector in your efforts to stop debt collectors from calling! California is an all party consent state, meaning you will need the permission of every person on the call to record. YOUR CONSENT ALONE IS NOT ENOUGH , thus you need a debt collectors permission to record the phone conversation in the state of California.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.
