The creditor levied your bank account and now you can't pay rent. California allows you to claim a hardship exemption when the levy takes money needed for basic necessities. Here's how to get your money back.
When a creditor levies your property - especially your bank account - California law recognizes that some property must remain protected to allow you to survive. The hardship exemption under CCP 703.070 allows you to claim that levied property is "necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor."
This is different from categorical exemptions (like the homestead or retirement exemptions). The hardship exemption is based on your actual financial circumstances - proving you need the money for basic survival.
You must file your claim of exemption within 10 days of receiving the notice of levy (15 days if mailed). Miss this deadline and the sheriff releases your money to the creditor - regardless of your hardship. Act immediately.
Fill out the Claim of Exemption form. Check the box for property necessary for support.
Fill out the detailed Financial Statement showing all income and expenses.
Collect pay stubs, bills, bank statements, and proof of expenses.
File the claim with the levying officer (sheriff) and serve the creditor.
Form EJ-165 requires you to disclose your complete financial picture:
The financial statement is signed under penalty of perjury. The creditor will scrutinize it for inconsistencies. Hiding assets or income destroys your credibility and can result in perjury charges. If you have some assets but genuinely need the levied funds for necessities, explain your situation honestly.
Courts interpret "necessary for support" to mean money needed for basic living expenses - not luxuries or discretionary spending. You must show that losing the levied funds would prevent you from meeting essential needs.
Courts apply a survival standard, not a comfort standard. You don't get to maintain your previous lifestyle at the creditor's expense. You must show the levy prevents meeting basic needs - not that it makes life less comfortable.
If the creditor opposes your hardship claim, the court schedules a hearing within 20 days. This is where you prove your case.
Judges are more sympathetic when you bring comprehensive documentation. A stack of bills and bank statements is more persuasive than oral testimony alone. Organize your documents by category (housing, utilities, medical, etc.) for easy reference.
| Form | Name | Purpose |
|---|---|---|
| EJ-160 | Claim of Exemption | Main form claiming property as exempt |
| EJ-165 | Financial Statement | Required disclosure of income and expenses |
| WG-006 | Claim of Exemption (Wages) | Specific form for wage garnishment hardship |
| EJ-170 | Notice of Opposition | Creditor's opposition to your claim |
This is exactly what the hardship exemption addresses. Even if you have income or other funds, if those funds are already committed to necessary expenses and the levy prevents you from meeting basic needs, you can claim hardship. The key is showing a detailed budget where income minus necessary expenses leaves nothing extra.
Available credit doesn't defeat a hardship claim. You're not required to go further into debt to pay a judgment creditor. Courts understand that using credit cards for necessities creates more problems. Your hardship claim is based on your actual cash flow, not potential borrowing capacity.
Courts consider your ongoing needs, not just today's expenses. If rent is due next week and the levy took your rent money, that qualifies. However, vague claims about future needs are less persuasive than concrete upcoming obligations. Show specific bills with due dates.
Yes. Courts can order partial release - returning enough for your necessities while leaving some for the creditor. If the creditor levied $5,000 but you only need $3,000 for essentials, the court might release $3,000 and let the creditor have $2,000. Judges try to balance debtor survival with creditor rights.
You would need to file another claim of exemption for each new levy. A successful hardship claim releases only the funds from that specific levy. However, if a creditor repeatedly levies funds that are clearly necessary for support, you might argue the repeated levies constitute harassment and seek sanctions.
Once the deadline passes, the sheriff releases the funds to the creditor and they're generally gone. In rare cases, if you didn't receive proper notice or there were extraordinary circumstances, you might file a motion to vacate. But the standard is high - courts strictly enforce the deadline. If you're close to missing it, file immediately even if incomplete.
The 10-day deadline is unforgiving. I help California debtors file hardship exemption claims quickly and present compelling cases at hearings. Don't wait until it's too late.