What money in my bank account is protected from creditors in California?

1. Federal Floor. Social Security, SSI, SSDI, VA benefits, federal pensions, and OPM annuities are absolutely protected from garnishment under 42 U.S.C. § 407 and 38 U.S.C. § 5301. The federal "two-month rule" in 31 C.F.R. Part 212 requires the bank to automatically protect two months of directly deposited federal benefits without any claim from the debtor.

2. State Wild-Card / Cash Exemption. California has no traditional wild card, but CCP § 704.220 protects the "minimum basic standard of adequate care" amount from CalWORKs — currently roughly $1,975 for a single person and $3,950 for a family — automatically in any deposit account, even commingled. CCP § 703.140(b)(5) (bankruptcy-only wildcard) adds $1,750 plus unused homestead.

3. Other Source-Specific Exemptions. Public assistance (CCP § 704.170), unemployment (§ 704.120), workers' comp (§ 704.160), disability insurance, alimony and child support received, and 75% of paid earnings deposited within 30 days (§ 704.070) are all exempt.

4. Retirement Accounts. ERISA 401(k)/403(b) plans are fully protected; IRAs are protected to the extent "necessary for support" under § 704.115, in addition to the federal BAPCPA cap of $1,512,350 (April 2022).

5. Joint Accounts. California is a community-property state and does not recognize tenancy-by-the-entireties protection; community funds may be reached for either spouse's debts.

6. Claim of Exemption Process. Debtor has 10 days from service of the Notice of Levy to file EJ-160 with the levying officer; creditor has 10 days to oppose; hearing follows.

7. Burden of Proof. Debtor must trace exempt funds with bank statements showing deposit source.

8. Penalty for Wrongful Garnishment. Court may award costs and attorney fees under CCP § 706.153.

9. Bankruptcy Interplay. Chapter 7 trustee may liquidate non-exempt cash; Chapter 13 lets debtor keep it by paying value into plan.

This is legal information, not legal advice.