Options and solutions

Options and solutionsVoluntary deposit

The expression “to apply the law of Lacombe” is still used by many people today, Lacombe being the name of the person who fostered the law project when he started in the National Assembly.

Voluntary deposit consists of allowing the available portion of your salary to be seized by Court until your debts are fully paid. Who does this concern?

Voluntary deposit is applicable to the salary of a working resident of Quebec, a self-employed individual that has employment insurance and social aid.

How to prevail To prevail in this situation, the debtor has to present a registry in the Palace Court of Justice of Quebec, a civil chamber, a legal district of their residence or work place, and make a declaration under oath in which they declare the names of their creditors, the amount of debts owing, their employer and the number of witnesses, etc.

What do voluntary deposit consists of? Voluntary deposit consists of depositing the entire available portion of your salary until the time that 100% of your debts are paid (as well as an additional 5% of interest per year). The available portion to deposit is calculated by looking at your gross salary (before taxes). For a self-employed individual, the available portion is calculated by their revenues from work minus expenses related to their revenues. The available portion represents 30% of their gross revenue (before taxes), first taking away an exemption depending on how many people work for you ($120 is taken away for one person, $180 if the debtor employs 1 or 2 people and $30 for each extra person employed). If one of the debts were due to alimony, the available portion of the salary would be 50% of the gross revenues before taxes.

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Protection that comes from voluntary deposit Voluntary deposit protects the debtor from certain seizures, under the condition that they respect all of the requirements by law, such as: making their deposits by the deadlines agreed upon and produced for the specific debt, all declarations of payables due to changes in your personal life (children or spouse) or finances.

Therefore, the voluntary deposit protects the debtor against seizures of salary, furniture found in the house and makes it so you are only depositing the available portion of your salary.

Limits of this protection All depending, the debtor is not safe from seizure of real estate, goods and furniture financed by leasing, bank accounts, or vehicle. The debtor is also not necessarily safe from seizures that were made before registering their voluntary deposit.

The amount that is limited to protection: the portion that can be seized elevated due to revenue, interests on debts that are still carrying a rate reduced by 5% and the fact that your credit rating is R9 (see credit rating), the same as bankruptcy are things that diminish the lure of voluntary deposit.

By paying your credits it can help avoid many worries. Even if you feel as though your financial problems have reached the point of no return, know that you have both the right and choice to not declare bankruptcy. In this sense, voluntary deposit is an excellent and realistic way to pay off your debts. Our trustees and our consultants for financial recovery will guide you. By choosing to opt for voluntary deposit, you are making a monthly payment to Court until 100% of your debts have been paid. The amount of this payment is decided upon by considering both your salary and family obligations.

You avoided bankruptcy and have stopped being harassed by your creditors.

  • You only have a single monthly payment, based on your budget
  • You pay only 5% interest on your debts

ATTENTION! Make sure your monthly payment isn’t less than the interest that your debt accumulates.
Make sure the period of time necessary to eliminate your debts is suitable to you.
Make sure the payment that is asked of you is both reasonable and achievable with your budget.

A member of our team will happily help you regain control of your financial situation. Take a first appointment now, it is free and confidential. Contact a member of our team
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