2023 BLOG EIGHT

PROP 209 CHANGES

1.    Set a limit on interest rates for debt accrued from receiving healthcare services as equal to either the weekly average one-year constant maturity treasury yield or 3 percent, whichever is less.

2.    To increase the amount of value for certain property and earnings exempt from attachment, execution, forced sale, and any other debt collection processes.

 Prop 209 increased exemption amounts, as follows:

Old Exemption (per person)  New Exemption

Homestead equity

$250,000  $400,000

Household goods and furnishings

$6,000  $15,000

Motor Vehicle Equity

$6,000  ($12,000 if disabled)  $15,000  ($25,000 if disabled)

Funds in bank account

$3000  $5,000

Disposable earnings

75% of earned but unpaid wages  90% of earned but unpaid wages