From my reading of California law (I do NOT practice in California and thus this is only after a quick read of what I found on the net) it appears that money deposited into a back account can be attached by a Creditor, even if the money had been exempt from execution as wages (i.e. under the Federal Exemption of 30 times the federal minimum wage or after 25% of the wages had been attached).
In fact according to the web cite for Small Claims court for California, you can even attach a spouse's income (Something that is NOT possible in my home state of Pennsylvania which clearly holds a spouse's assets and marital assets can NOT be sold for the debt of the other spouse, or in the case of Marital assets the debts of one spouse, this is in additions to Pennsylvania's ban on attachment of wages for debts except for Child support, students loans and a few other minor exceptions).
Small claims Court in California
http://www.courtinfo.ca.gov/selfhelp/smallclaims/collectintro.htmList of California Exemptions:
http://www.courtinfo.ca.gov/forms/documents/exemptions.pdfCode of Civil Procedure 704, personal property exemptions:
http://caselaw.lp.findlaw.com/cacodes/ccp/704.010-704.210.htmlGeneral provisions:
http://caselaw.lp.findlaw.com/cacodes/ccp/703.010-703.150.htmlHomestead provisions:
http://caselaw.lp.findlaw.com/cacodes/ccp/704.710-704.850.htmlI do NOT see any exemptions of any bank account, except if used to deposit Social Security or welfare payments, under the above laws. California gives a lot more exemptions than Pennsylvania when it comes to property (Pennsylvania only exempts $300, personal clothing and a Bible) but from what I have read California treats banks accounts the same as Pennsylvania, as something that can be grabbed by Creditors. Given that a lot of people who do NOT have bank accounts because any money deposited can be taken by one of their judgment creditors (Often an old landlord) how does the proposal handle this problem?
Please note I can going by my practice in Pennsylvania, which with its $300 personal property exemptions. the practice of grabbing bank accounts is common. California practice may be different I will have to defer to a lawyer who practice in that state. For that reason I am just pointing out one reason (and often the chief reason) my clients do NOT have bank accounts, their wages, once deposited into a bank account, can be grabbed by a Judgment Creditor even while they have outstanding checks on that account. Bank deposits in Pennsylvania are NOT exempt from attachment. From what I have read neither are bank accounts in California, which may be the chief reason low income people do NOT have back accounts.