Law Offices of Michael J. Primus

Personal & Business Bankruptcy Attorney serving San Francisco Bay Area Since 1993

Finally, consumers catch a break! California’s Delete Request and Opt-out Platform is live

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What is the DROP System?

The Data Removal Opt-out Platform (DROP) is a centralized opt-out registry created under California’s DELETE Act (SB 362), signed into law in October 2023 but went live January 1, 2026. It allows California residents to submit a single request to opt out of having their personal information sold or shared by all registered data brokers — rather than having to contact each broker individually.

Key Details

Who runs it? The California Privacy Protection Agency (CPPA) is responsible for building and maintaining the DROP system.

What it covers: Data brokers — companies that collect and sell personal information about individuals they don’t have a direct relationship with — are required to register with the state and honor DELETE requests submitted through DROP.

What Consumers Can Do

  • Submit one request through DROP to reach all registered data brokers
  • Request deletion of their personal data
  • Opt out of the sale or sharing of their information
  • The system must be accessible to people with disabilities

Data Broker Obligations

  • Must register annually with the CPPA
  • Must honor requests made through DROP within 45 days
  • Cannot charge consumers a fee to process requests
  • Must delete data and refrain from selling it going forward
  • Violations can result in fines of $200 per consumer per day

How It Differs from the CCPA

The existing California Consumer Privacy Act (CCPA) already gave residents privacy rights, but required consumers to contact each data broker separately. DROP consolidates that into a single, universal request — a major practical improvement.

Calif. Civil Code § 1798.99

Unemployment and Social Security overpayments are forgiven in bankruptcy

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According to the Bureau of Labor Statistics, baby boomers (those born between 1957 and 1964) will experience 5.6 spells of unemployment between ages 18 and 48.  Most will apply for, and receive, unemployment insurance.  An unemployment overpayment occurs if a person continues to receive unemployment after returning to work.  Typically an overpayment occurs when a person is in dire financial straits and has exhausted other options like credit cards and personal loans.  That is not to suggest that accepting unemployment after returning to work is just or right.  The question is whether an unemployment overpayment is the type of debt society is willing to forgive in bankruptcy,  and the answer is, yes, the overpayment can be forgiven.
      Many people assume all governmental debts survive bankruptcy, and there are specific provisions in the law that allow some governmental claims to survive bankruptcy but not all.  Bankruptcy can forgive claims for monetary reimbursement by a governmental unit including unemployment overpayments and Social Security overpayments.  Once a bankruptcy is filed the government must stop any collection efforts including wage garnishments and account levies related to the overpayment.  The next question people typically ask is, “What will happen if I apply for unemployment in the future?”  The answer is once an overpayment claim is forgiven, there is no basis to deny a future unemployment claim.  If you owe money to Employment Development Department related to an unemployment overpayment bankruptcy may be an option for you.
      At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free consultation.
Reference 11 U.S.C. 523(a)(7); Cooper v. Social Security Admin. (9th Cir. 2025)

Chapter 7 Bankruptcy – Necessities of Life or Exemptions – Updated for 2025

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Old ShoesExemptions. Funny word, right?  Exemptions in bankruptcy are assets considered by the law to be necessities of life.  Exempt assets are things you keep when you file chapter 7 bankruptcy whereas non-exempt assets can be taken and sold for the benefit of your creditors.  Most people considering chapter 7 bankruptcy in Contra Costa County have some general idea about what the system will allow them to keep.  The trouble is, most people are wrong!  Many people assume they will not be allowed to keep a car.  Others assume the judge will come to their house to inventory their clothes.  The law is clear, people just need to know their rights.  To begin, chapter 7 is the most common type of bankruptcy and is also the strictest.  The exemption laws in California give people filing chapter 7 bankruptcy two options:

Option One – Wildcard or 703 Exemptions

These exemptions are generally selected for people who do not own a home, or for homeowners with little or no equity in their home.  These exemptions are commonly referred to as the “703” Exemptions, a term derived from the number of the Code section in the California Code of Civil Procedure in which they are enumerated (C.C.P. §703.140). It is also commonly referred to as the “Wildcard” Exemption, getting its name from the fact that §703.140(b)(5) allows for the protection of miscellaneous personal property as discussed below.

  1. Miscellaneous Personal Property (“Wildcard”) – Up to $36,750 (amount as of Jan 1, 2025) in any property owned. If you do not own a home or have no equity in your home, then the Wildcard exemption will protect up to $36,750 worth of your assets. Importantly, the Wildcard exemption may be combined with the other categorized exemptions below, such as the vehicle exemption, for example, in order to protect a car worth far more than the vehicle exemption would otherwise allow.
  2. Household Goods and Furnishings (for example clothing, furniture, appliances, books, instruments, sporting goods, etc.) – are protected.
  3. Jewelry – Up to $2,175 is protected.
  4. Motor Vehicle(s) – Up to a total of $8,625 for one or more vehicles. As noted above, if the value of your vehicle exceeds this amount, or you have multiple vehicles, generally you can use some portion of the Wildcard exemption to protect the remaining value of the vehicles.  Also note, with a vehicle that is not paid for, only the equity in the vehicle, if any, must be exempted.
  5. Public Benefits – Benefits offered by the government such as Unemployment, Social Security, Disability, Public Welfare, and Veteran’s benefits are exempt.
  6. Life Insurance with a Cash Surrender Value (often called “whole life” or “Universal Life”) – Up to $19,625 in cash value.  Cash value is defined as the amount that can be redeemed while the owner or the insured is alive.  Conversely, the death benefit is a much higher amount payable only on death.  Bankruptcy and exemptions are unrelated to death benefit amounts.
  7. Tools of the Trade (implements, professional books, tools, other things used for your occupation) – Up to $10,950.
  8. Retirement Accounts – These are exempt in their entirety so long as the retirement is an IRA or an employer sponsored plan like a union pension, 401(k), or 403(b).  Self-employment retirement plans like Keogh plans, SEP IRAs and the like are subject to special rules.

Option Two – Homestead or 704 Exemptions

These exemptions are commonly known as the “Homestead Exemption” because the majority of people using these exemptions do so to protect the equity in their home.

  1. Homestead – Covers equity in a primary residence of up to $699,000 in most cases.
  2. Motor Vehicle – Up to $8,625 in one or more vehicles.
  3. Jewelry, Heirlooms, and Art – Up to $10,950 combined value for all items.
  4. Tools of the Trade – Assets used in a person’s (or their spouse’s) trade, business, or profession – Up to $10,950, unless both spouses are engaged in business, then $21,900. Note, however, that a commercial motor vehicle is limited to  $4,850; or $9,700 for married couples.
  5. Life Insurance with a Cash Surrender Value (for example “whole life” or “Universal life”) – Up to $15,250 or $30.500 if a husband and wife file bankruptcy together.
  6. Public Benefits – Benefits including Unemployment, Social Security, Disability, Welfare, and Veteran’s benefits are exempt with no monetary limit.
  7. Retirement Accounts – Are exempt in their entirety so long as the retirement is an IRA or an employer sponsored plan like a union pension, 401(k), or 403(b).  Self-employment retirement plans like Keogh plans, SEP IRAs and the like are subject to special rules.

The exemption laws are complicated and this is a general description.

At the Law Office of Michael Primus, we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa County and have debt problems, contact us for a free consultation.

If my wages get garnished, how much can they take?

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In California, if there’s a judgment against you the creditor will have several options to try to collect and can pursue one or more of these options simultaneously. The most common are a writ of attachment which allows the creditor to take money directly from a bank account and a wage garnishment which requires an employer to take money directly out of your paycheck. In this post, I will discuss a wage garnishment.

In California, the maximum amount that can be garnished (taken) from a judgment debtor’s wages depends on various factors, including the type of debt. California law provides specific limitations to protect you from excessive garnishment(s). Let’s explore the key aspects of wage garnishment in California.

  1. Types of Debts:

    • Consumer Debts: This category includes debts arising from credit cards, personal loans, medical bills, and other similar obligations.
    • Child or Spousal Support: Debts related to court-ordered child or spousal support are given higher priority and can result in higher garnishment amounts.
    • Taxes and Student Loans: Government debts, such as unpaid state of federal taxes can also be subject to wage garnishment. In fact, the State of California aggressively pursues wage garnishment to collect unpaid taxes.

  2. Maximum Garnishment Amount:

    • Federal Law Limit: The Consumer Credit Protection Act (CCPA), a federal law, sets limits on the amount of earnings that can be garnished. As of my knowledge cutoff in September 2021, the maximum amount is generally 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is lower.
    • California State Law: While federal law sets a baseline, California law provides additional protection for debtors. In California, the maximum amount that can be garnished for most consumer debts is 25% of disposable income, but various exemptions and calculations come into play.

  3. Calculation of Disposable Income:

    • Definition: Disposable income refers to the amount left after legally required deductions, such as taxes and Social Security, have been subtracted from an individual’s earnings. Note: this does not consider typical living expenses such as rent, food or transportation expenses.
    • Calculation: The garnishment amount is based on disposable income, which is determined by subtracting statutorily required deductions from the individual’s gross income. California law provides guidelines on how to calculate disposable income based on various factors.

  4. Exemptions and Protections:

    • Claim of Exemption: this is a written form that’s provided with the wage garnishment papers. If you complete this form a judge will review your case to determine if the contemplated garnishment should be limited to less than the amount discussed above or denied completely based on financial hardship.
    • Low-Income Exemption: If your income is below a certain threshold your employer will be required to not garnish.
    • Exemptions and protections delay payment based on your financial circumstances but the judgment will continue to accrue interest until paid if full.

  5. Prioritization of Debts:

    • California law assigns priority to certain types of debts. For example, child support and spousal support obligations typically take precedence over consumer debts.
    • Multiple Garnishments: If a debtor has multiple garnishments, California law outlines the order in which they should be satisfied, ensuring that obligations such as child support receive priority.

It is important to note that specific circumstances can vary. One interesting source of review is the guidance provided to employers by the State of California, see below.

At the Law Office of Michael Primus, we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in northern California and have debt problems, contact us for a free consultation.

Resources
www.selfhelp.courts.ca.gov/guide-earnings-withholding-orders-employers#First-step

Will I lose my job if I file for bankruptcy?

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Bankruptcy is designed to help you get through severe financial problems, and the law is designed to help you get back on your feet and move forward in life. It’s important to know that filing for bankruptcy doesn’t give your employer a valid reason to terminate your employment, reduce your salary, or change your job responsibilities. The bankruptcy laws specifically prohibit this type of discrimination, and this applies to all employees, regardless of whether they work for the federal government, state government, or a private company.

Usually, your employer will not even find out about your bankruptcy filing, because you are not required by federal law to disclose it. A bankruptcy will stop most garnishments (not child support garnishments) but your employer will almost certainly become aware of the bankruptcy as part of terminating the garnishment. Even if your employer does become aware of your filing, they are not allowed to discriminate against you. It’s worth noting that some employers may review credit reports during the hiring process. While a bankruptcy filing cannot be used to retaliate against job applicants, it may limit your ability to work in certain roles, such as payroll, accounting, or with business funds.

If your job requires a security clearance, your bankruptcy filing may actually be seen as a positive. Eliminating debts can reduce the risk of liability associated with your position and decrease the likelihood of blackmail. If you’re considering filing for bankruptcy, it’s a good idea to consult with a bankruptcy attorney to fully understand your rights and options.

Additionally, the law prohibits discrimination against you in the context of licensing which means, for example, you will not lose a contractor’s license, real estate broker’s license, or nursing license as a result of filing for bankruptcy.

At the Law Office of Michael Primus, we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in northern California and have debt problems, contact us for a free consultation.

Biblical Thoughts On Bankruptcy

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Biblical Thoughts On Bankruptcy – The concept of bankruptcy is troubling for most people. The Bible offers guidance to both borrowers and lenders. There are four principles to consider.

First, the Bible teaches that people should perform on any agreement including paying debts. This is part of the general principle of the ninth commandment:

“You shall not bear false witness against your neighbor.” (Exodus 20:16)

Similarly, there’s Numbers 30:2 that says:

“If a man makes a vow to the Lord, or swears an oath to bind himself by some agreement, he shall not break his word; he shall do according to all that proceeds out of his mouth.” (Numbers 30:2)

Second, lenders are instructed that interest should not be charged on a loan to the poor. The Lord also forbade the lender from keeping things necessary for living even when the borrower offered such as security:

“If you lend money to any of My people who are poor among you, you shall not be like a moneylender to him; you shall NOT charge him interest. If you ever take your neighbor’s garment as a pledge (security for payment of a debt), you SHALL return it to him before the sun goes down. For that is his only covering, it is his garment for his skin. What will he sleep in? And it will be that when he cries to Me, I will hear, for I am gracious (and, by implication, the lender is not).” (Exodus 22:25-27)

Third, in two parables Jesus used the illustration of forgiveness of a financial debt to teach about God’s forgiveness and the requirement that mankind forgive (see Matthew 18:21-35 and Luke 7:36-50). “And when they had nothing with which to repay, he freely forgave them both” (Luke 7:42).

Fourth, interestingly our modern bankruptcy laws resemble Biblical law as it relates to forgiveness of debt. U.S. Bankruptcy law allows for the forgiveness of most debts every 8 years through chapter 7. Biblical law released debts every 7 years.

“At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD’s release” (Deuteronomy 15:1-2).

Conclusion, people should pay their debts if possible, however the Bible clearly contemplates release of debts and forgiveness for people unable to pay. Modernly that release is found in the bankruptcy laws. Additionally the Bible, like some modern laws, prohibits predatory lending including loans designed to make the borrower a slave to the lender.

Call now for a free consultation.

Law Office of Michael Primus


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