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2 Garnish wages (up to 25% of each paycheck). Even employment income cannot be garnished if employee makes less than $360/week. Levy money from bank accounts. Recent change in CA law, raised from $ /22/ /22/ Pretty much all income/benefits received from the government are protected from garnishment. This includes Social Security, Disability, Welfare/Public Assistance, Food Stamps, Unemployment benefits, Worker s Compensation, and even many pensions/retirement plans. Common questions: IHSS payments? Child Support? 10/22/ What about once the benefits are in a bank account? Formerly, back door levy often used instead of garnishment as a very unethical form of leverage. California (and later NY) enacted laws to prevent this, but a federal court said they were invalid because only federal laws could regulate banks. Before, a debtor could only protect the benefits by getting them back after they were taken, through a claim of exemption, and even then it was difficult. 10/22/

3 2011 Federal Law protects the account. Double the monthly payment that is direct-deposited automatically by the bank. Bank can tell based on direct deposit codes. Most stuff in your house is exempt, including Appliances Furniture No problem with comingling of funds. Banks have generally followed this, though some problems came up with inappropriate fees. Electronics Jewelry 10/22/ /22/ Right away when receiving garnishment or levy notice, debtor fills out two forms. Delivers (preferably in person) to the levying officer /sheriff. Later receives notice of court date for hearing money still taken while waiting, but kept by sheriff. NLSLA supported bill that would have given back all money to debtor until Claim of Exemption was decided, but it failed. 10/22/ A claim of exemption is meant to ensure that a debtor and his family, regardless of the debtor s improvidence, will retain enough money to maintain a basic standard of living in order that the debtor may have a fair chance to remain a productive member of the community. Perfection Paint Products v. Johnson (1958) 164 Cal. App. 2d 739, 741. Debtor must try to show that current income is equal to or less than current expenses. 10/22/

4 Available for either garnishment or bank levy. Must file w/in 10 days or money is gone for good. Generally more difficult to succeed for bank levy, but can still be done. Judges are more skeptical of the need for a pile of savings, but there can be good reasons to need them. Claim of exemption can be partially granted for example, garnishment proceeds at 10%. If claim of exemption is granted, creditor cannot try again for 100 days. Creditors are unlikely to try again even after that unless they have evidence that debtor s financial situation has changed. Otherwise, throwing away filing fees, costs to sheriff. Claim of exemption hearing notice often spurs creditors to try to settle on more agreeable terms. 10/22/ /22/ Doesn t apply for garnishment nobody can have exempt income garnished for a consumer debt. Exists for bank levy, but since the federal regulation was enacted, much less common. Some sources of federal exempt income were not included in the reg. More commonly, state benefits are not protected by the federal regulation e.g., state disability or pensions. Allows debtor to re-claim the taken funds without any particular showing of need. 10/22/ Exist in courthouses all over Van Nuys, San Fernando, Antelope Valley, Pomona, Pasadena, Inglewood, Torrance, Long Beach. Can help you fill out and file a claim of exemption, among many other things they do (eviction help, family law, etc.). First-come, first serve, but call first to get most recent hours, ensure each center can help with your given issue. 10/22/

5 NLSLA hosts an answer clinic most Fridays each month in Chatsworth. Only for litigants who have received summons/complaint re: credit card debt within the last 30 days. Not car accident or other personal injury, medical debt, small claims, etc. Appointment required! Also call After you get help with a claim of exemption at a self-center, can get help preparing for the hearing. Meets only once per month sign up by getting help with paperwork at local self-help center. I or another lawyer will meet with you and help you understand how to best present your situation to the judge. 10/22/ /22/ /22/