Discover Bank v. Bachir Khababa

SUPERIOR COURT, STATE OF CALIFORNIA COUNTY OF SANTA CLARA Department 12 Honorable Nahal Iravani-Sani, Presiding Courtroom Clerk, Ryan Nguyen 191 North First Street, San Jose, CA 95113 Telephone: (408) 882-2230

DATE: 07/01/2026 TIME: 9:00 A.M. and 9:01 A.M.

9:01 CASE # Discover 21CV378863 CASE Bank vs TITLE CLAIM OF EXEMPTION Bachir Khababa LINE 1 The Court has considered the judgment debtor’s Claim of Exemption and the judgment creditor’s opposition. The judgment debtor asserts that funds in the levied checking and savings accounts are exempt on the basis that they are derived from Social Security benefits. The judgment creditor opposes the claim, contending that the debtor has not provided any financial statement, bank records, or other documentation supporting the exemption claim and further represents that informal efforts were made to resolve the matter without success.

Social Security benefits are exempt from enforcement of a money judgment under federal and California law, and retain their exempt status when deposited into a financial institution to the extent they are reasonably traceable. However, when the exemption is challenged, the burden is on the judgment debtor to establish the factual basis for the exemption with competent evidence.

Here, the debtor has not submitted bank statements, benefit award documentation, or other evidence sufficient to establish that the levied funds are traceable to exempt Social Security income.

Pursuant to California Code of Civil Procedure §703.540, the Court may determine exemption claims on the papers or require additional evidence as necessary to resolve factual disputes.

Given the absence of supporting documentation, the Court cannot make a finding that the funds are exempt on the current record.

1. The Claim of Exemption is DENIED WITHOUT PREJUDICE.

2. This denial is based solely on the debtor’s failure to provide sufficient supporting documentation to establish the exempt nature of the funds.

3. The debtor may renew the Claim of Exemption upon submission of competent evidence, including bank statements and proof of Social Security benefits sufficient to trace exempt funds.