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Under what circumstances should you resort to voluntary deposit?

You have accumulated a lot of debt, and you are looking for an effective way to avoid going bankrupt. Why not opt ​​for voluntary deposit? This is a solution that allows you to overcome your financial problems without risking having your income seized. Find out in this article what voluntary deposit is and under what circumstances it is appropriate to consider it.

Voluntary deposit: what is it?

Voluntary deposit is a judicial process under the Civil Code of Quebec. It consists of reorganizing the debts of a person in financial crisis in order to allow him to repay them while enjoying the benefit of exemption from seizure. More specifically, it is a question of voluntarily handing over to the Court of Quebec a seizable portion of your salary until your debts are fully repaid. On average, the debtor makes available to the Court an interest rate of 5% per annum. This is equivalent to his salary if he is employed, either his income if he is self-employed, or his benefits if he is unemployed or retired.

Thanks to this solution, the debtor will be able to pay the creditors a proportion of their claims according to his financial capacity. The amount to be deposited is calculated according to the conditions provided for by law: your income and the number of dependents.

Voluntary deposit: the rights and obligations of the debtor

The debtor, in order to benefit from the voluntary deposit process, must comply with a few provisions, namely:

register your request;
regularly pay the amount calculated to the office of the Court of Québec;
declare any modification of his file.

Indeed, if the debtor does not honor his commitments, he automatically loses the protection offered by the voluntary deposit. However, he has the option to waive the process at any time by notifying the clerk.

You are in financial difficulty with debts to settle. Do not hesitate to seek the services of the Leblanc Syndic Group to find peace of mind. After careful, non-judgmental analysis of your financial situation, these financial health makers will advise you on the solution that best suits your needs. The solutions offered by these professionals are numerous, ranging from willingly filing to consumer proposal, debt consolidation, agreement with your creditors, etc.

Why and when to register for voluntary deposit?

There are three essential circumstances that may motivate recourse to voluntary deposit as a debt repayment solution:

when you feel unable to pay your debts and letters from your creditors keep falling on you, to the point of becoming a source of stress;
when the interest on your debt seems too high for your financial situation;
or when the total amount due is too high.

If you happen to find yourself in one of these cases, voluntary deposit is the ideal solution that will allow you to avoid personal bankruptcy by settling all of your debts.

What are the advantages of voluntary deposit?

In addition to the protection against wage garnishment and your essential assets that voluntary deposit offers you, it also allows you to repay your debts equally to your creditors. Likewise, the monthly payment is distributed proportionately to all of your lenders. In short, with voluntary deposit the interest rate on your debts is reduced to 5%, unless it is already at 5%.

Nathalie Chambon
Nathalie Chambon
Fan de décoration et de design, j'en fais désormais mon métier, notamment grâce à ce journal où je viens parler de déco, de mode et des dernières tendances en terme d'architecture.


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