§ 704.140.Cause of Action For Personal Injury

Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 3. Exempt Property · Enacted 1982 · no amendments on record · Last verified July 28, 2026

In one sentenceSection 704.140 exempts a personal injury cause of action entirely without a claim, and exempts any resulting damages award or settlement to the extent necessary for the support of the debtor and dependents, except against a health care provider whose claim covers that same injury.

Full Text of § 704.140

Text sizeJump to: (a) (b) (c) (d)

(a) Except as provided in Article 5 (commencing with Section 708.410) of Chapter 6, a cause of action for personal injury is exempt without making a claim.

(b) Except as provided in subdivisions (c) and (d), an award of damages or a settlement arising out of personal injury is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.

(c) Subdivision (b) does not apply if the judgment creditor is a provider of health care whose claim is based on the providing of health care for the personal injury for which the award or settlement was made.

(d) Where an award of damages or a settlement arising out of personal injury is payable periodically, the amount of such periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).

Plain-English Summary

A personal injury claim itself — before it turns into money — is fully exempt without the debtor filing anything, subject only to the fraudulent-transfer provisions in Article 5 of Chapter 6. Once the claim resolves into an actual damages award or settlement, the protection narrows to what's reasonably necessary for the support of the debtor and the debtor's spouse and dependents, rather than covering the full recovery automatically.

That support-based exemption has an important exception. It doesn't apply when the judgment creditor is a health care provider whose claim is based on treating the very personal injury for which the award or settlement was made — the provider can reach the recovery that was meant, in part, to pay for that care.

When a personal injury award or settlement is paid out periodically rather than as a lump sum, subdivision (d) ties the exempt portion to the Wage Garnishment Law's earnings-withholding limits, treating the periodic payment the same way ordinary wages would be treated.

Frequently Asked Questions

Is a personal injury lawsuit itself protected from a judgment creditor?

Yes. Section 704.140(a) exempts the cause of action itself without any claim, aside from the fraudulent-transfer provisions in Article 5 of Chapter 6.

What about the money I recover from a personal injury settlement?

It's exempt to the extent reasonably necessary for the support of the debtor and the debtor's spouse and dependents — not automatically in full.

Can a hospital or doctor collect a bill from my injury settlement?

Yes, if the judgment creditor is a health care provider whose claim is based on treating the same injury the settlement compensates.

What if my settlement is paid out in installments?

Section 704.140(d) applies the Wage Garnishment Law's withholding limits to each periodic payment, the same as it would to ordinary wages.

Amendment History

Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.

Source & verification. Section text is reproduced verbatim from the Deering's California Codes Annotated / vLex. Enacted by the California Legislature. Last verified July 28, 2026. · Official source

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