Our solutions to become debt-free
Voluntary deposit
The provisions concerning voluntary deposit are part of the Code of Civil Procedure of Quebec. Even today, people still use the expression the "Lacombe Law", which is the surname of the person who sponsored the bill at the time of its adoption by the National Assembly.
Voluntary deposit consists of paying a portion of your salary to the Court until all your debts have been paid off.
Who's eligible?
The voluntary deposit service is available to people residents of the province of Quebec, employed or not, including recipients of employment insurance and/or welfare.
How to proceed
The person must present himself/herself to the local courthouse in civil chamber, in the judicial district of his/her residence or in which he works and he/she make a statement under oath regarding his/her creditors, his employer and the number of his dependents, etc.
What is voluntary deposit
Voluntary deposit is paying to the Court the attachable portion of your salary until 100% of your debts are paid off (plus 5% interest per year). The attachable portion is calculated from the gross salary (before taxes). For the self-employed, the attachable portion is calculated from gross employment income minus the expenses related thereto.
The attachable portion represents 30% of gross income (before taxes), from which must be deducted an exemption that varies according to the number of dependents ($ 120 per week for one person, $ 180 if the debtor has one or two dependents, and $ 30 for each additional dependent). If a debt is related to alimony, the attachable portion will be 50% of gross income before taxes.
Protection resulting from the voluntary deposit
Voluntary deposit protects the debtor against certain garnishments provided s/he meets all the legal requirements, i.e.: makes the deposits within the prescribed deadline and s/he files the statements in the event of changes in personal (dependent children, spouse) or financial circumstances.
Thus, the voluntary deposit protects the debtor against salary garnishments, seizure of furniture found in his residence and job dismissal if the motive is the voluntary deposit.
Limits of this protection
However, one is not immune from seizures of property, assets and furniture financed by an installment sales contract, bank accounts or a car. S/He is also not protected from a seizure that was undertaken prior to enrollment in the voluntary deposit.
The limited scope of the protection afforded by voluntary deposit, the high attachable portion of income, the interest on debts that continues to accrue and the fact that your credit rating will be R9 (see credit rating hypertexte), the same as with a bankruptcy, are elements that reduce the attractiveness of voluntary deposit.
For more information, visit the following site: www.justice.gouv.qc.ca
See other solutions