Thank you for your question and for asking for me again.
A notice of levy means they are seeking to take your property to satisfy the judgment. The exemptions are the same exemptions used in CA by the bankruptcy court. Here are the CA Bankruptcy exemptions: Bankruptcy Exemptions
. You would list any property you have that is on that list and the values up to the amounts on the list.
The only way to avoid execution sale is to reach a settlement with them to make payments on the judgment. I do not think you want to file bankruptcy over $3500, unless you have a large amount of other unsecured debts you need to wipe out at the same time, but bankruptcy would stop them from executing on the judgment as well.
I am afraid that any property that is not exempt on that list at the link I provided can be taken and sold to satisfy the judgment.
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