How to Claim Exemptions When a Collector Tries to Levy Your Bank Account

California Debt Settlement System | Justice Foundation

A bank levy is one of the most disruptive enforcement actions a judgment creditor can take — your account is frozen without warning and you must act quickly to claim any exemptions. Understanding exactly what is exempt from levy, how to claim those exemptions, and the timeline you’re working with is essential for anyone with a judgment against them.

What Triggers a Bank Levy

After obtaining a judgment, a creditor obtains a writ of execution from the court and delivers it to the county sheriff or marshal along with a levy instruction identifying your bank and account. The levying officer serves the bank, which freezes funds up to the judgment amount. You receive a notice of levy — typically within a few days of the freeze — along with an exemption claim form and a deadline for claiming exemptions (usually 10 days).

California Exemptions From Bank Levy

Social Security, SSI, unemployment insurance, state disability, and workers’ compensation funds deposited in a bank account are exempt from levy under both federal and California law. The key complication: once exempt funds are co-mingled with non-exempt funds, the exemption becomes harder to establish. California also provides an automatic low-income exemption for bank accounts: funds up to a specified amount (adjusted periodically) that represent wages paid within the preceding 30 days are automatically exempt without requiring proof of source.

Filing the Exemption Claim

Complete the Claim of Exemption form (WG-006 for wage garnishment or EJ-160 for bank levy) identifying each exemption you’re claiming and the factual and legal basis. File it with the levying officer (sheriff or marshal) within the 10-day deadline — missing the deadline forfeits your exemption rights regardless of how clearly exempt the funds are. Attach documentation: a bank statement showing the deposit source, Social Security payment stubs, or other evidence establishing the exempt character of the funds. The Justice Foundation kit includes exemption claim forms and a guide to documenting exempt funds.