Scenario Calculator
California Debt Relief Calculator (State Programs)
California offers robust consumer protections for residents struggling with debt, including strong exemption laws that shield assets from creditors, a 4-year statute of limitations on written debt contracts, and several state-specific debt relief programs. Understanding these protections helps you make informed decisions about debt settlement, consolidation, or bankruptcy.
California's exemption laws are among the most generous in the nation. The System 1 homestead exemption protects up to $349,710 of home equity (or $524,565 if married), and System 2 allows a wildcard exemption of $1,820 plus any unused homestead amount. Wage garnishment is limited to 25% of disposable earnings (federal standard), and certain income like Social Security and pensions is fully exempt from creditors.
Use the calculator below to model your debt payoff timeline. Consider consulting a California-licensed bankruptcy attorney or a HUD-approved credit counselor (free) to understand your full range of options.
Your Debts
Total balance: $18,000.00 · Total minimums: $380.00/mo
Snowball vs. Avalanche Comparison
3 accounts
5 years
5 years
Avalanche vs snowball
Frequently Asked Questions
What is the statute of limitations on debt in California?
California's statute of limitations is 4 years for written contracts (including credit cards and personal loans), per Code of Civil Procedure §337. The clock starts from the date of the last payment or charge. After 4 years, creditors cannot sue to collect the debt. However, the debt still exists and may appear on your credit report for 7 years (FCRA). Making a partial payment or acknowledging the debt in writing can restart the 4-year clock. Time-barred debt should not be paid without legal advice, as doing so can revive the statute.
What are California's bankruptcy exemption amounts?
California offers two exemption systems (you must choose one): System 1 — Homestead up to $349,710 ($524,565 married, adjusted annually); household goods up to $8,715; jewelry/heirlooms up to $1,750; motor vehicle up to $3,325; wildcard $1,820 plus any unused homestead. System 2 — Homestead $34,970; household goods $8,715; motor vehicle $3,325; wildcard $1,820; tools of trade $8,715. System 1 protects more home equity; System 2 is better for non-homeowners. California's homestead exemption was significantly increased by SB 308 (2021) and adjusts annually.
What California debt relief programs are available?
California doesn't have a state-run debt relief program, but residents can access: (1) HUD-approved housing counseling (free, via California Housing Finance Agency). (2) Legal Aid Society (free legal help for low-income residents). (3) California Debt and Investment Advisory Commission resources. (4) Nonprofit credit counseling agencies (NFCC member agencies offer free budget counseling and DMPs at ~$20-50/month). Avoid for-profit debt settlement companies — California SB 302 (2020) regulates them, but many charge 15-25% of enrolled debt with no guarantee of results.
Can creditors garnish my wages in California?
Yes, but with limits. California follows federal garnishment limits: maximum 25% of disposable earnings, or the amount by which disposable earnings exceed 30× the federal minimum wage ($7.25/hr = $217.50/day → $4,522.50/month in 2026). California prohibits garnishment if you earn less than 30× minimum wage. Social Security, SSI, SSDI, unemployment, workers' comp, public assistance, and most pensions are fully exempt from garnishment. You can claim exemptions (Form WG-006) to protect income. California also limits bank account levies on exempt funds.