| California at a glance | |
|---|---|
| Time limit to sue on card debt | 4 years for credit card debt (written contracts and open accounts). |
| Deadline to answer a debt lawsuit | 30 days after you're served. |
| Wage garnishment | Creditors can take the lesser of 20% of weekly disposable earnings or 40% of the amount above 48 times the state or local minimum wage, which protects more than federal law. |
| Where to complain | California Attorney General consumer complaint |
How long creditors have to sue
4 years for credit card debt (written contracts and open accounts). Once that time runs out, collectors can't sue or start arbitration. A payment alone doesn't revive an expired debt; a signed written acknowledgment can extend it. (Cal. Code Civ. Proc. §§ 337, 360)
The time limit for suing is separate from credit reporting: most negative items can stay on your credit report for up to 7 years from when you first fell behind, regardless of state.
If you're sued in California
Answer deadline: 30 days after you're served. Check your own summons for the exact date, because missing it usually means a default judgment.
Court help: California Courts self-help: debt lawsuits.
Step-by-step help and common defenses are in our lawsuit and garnishment guide.
What's protected if there's a judgment
Your paycheck
Creditors can take the lesser of 20% of weekly disposable earnings or 40% of the amount above 48 times the state or local minimum wage, which protects more than federal law. (Cal. Code Civ. Proc. § 706.050)
Your bank account
A set amount in a bank account is protected automatically, without filing a claim. It's tied to a state benefit standard and adjusts every July (about $2,300 for July 2026 through June 2027). (Cal. Code Civ. Proc. § 704.220)
Everywhere in the US, Social Security, SSI and VA benefits are generally off-limits to private creditors, and banks must automatically protect two months of those benefits when they're direct-deposited.
Debt collectors in California
California's Rosenthal Fair Debt Collection Practices Act applies many federal protections to original creditors collecting their own debts, not just collection agencies. Debt collectors must also be licensed by the Department of Financial Protection and Innovation (DFPI). Federal rules still apply on top of state law. See your rights and free dispute letters.
Debt settlement and debt relief companies
Debt settlement companies must register with the DFPI, and California's Fair Debt Settlement Practices Act bars them from collecting fees before a debt is actually settled. Under federal law, debt relief companies that sell by phone can't charge fees until they've settled at least one of your debts. Read how settlement works.
Medical debt
Since January 1, 2025, medical debt can't be reported to credit bureaus in California, and knowingly reporting it can make the debt void. More in our medical bills guide.
Where to complain or check a company
- California Attorney General consumer complaint
- California DFPI (debt collectors and settlement companies)
- CFPB complaint portal (federal)
Sources
Laws and dollar amounts change, and court rules vary by county. This page is general information, not legal advice. For your situation, contact a legal aid office or a California consumer attorney.