When it comes to protecting working families from debt collectors, California gets only a C, according to a study of state exemption laws conducted by NCLC.
No state got an A in the study: Alabama, Delaware, Kentucky and Michigan rated F’s.
State exemption laws control what assets and income a creditor with a judgment can seize to pay its judgment. Without adequate protections for earnings, household goods, and a car to get to work, a family can be pushed into poverty or joblessness.
California wage garnishment
The Golden State took a hit on its protection of a judgment debtor’s wages, drawing a D.
State law protects from garnishment 40 times the state’s minimum wage of $8/hour per week. So, a worker whose weekly take home pay is no more than $320 per week is fully protected.
If you take home over the weekly minimum wage, a judgment creditor can divert the lesser of everything over the minimum wage or 25% of your net wages