You have debts and you want to avoid going bankrupt? Voluntary deposit is a solution that lets you pay your debts without the risk of having your salary or other income seized.
Voluntary deposit means voluntarily depositing part of your income into court. That way, you can repay your debts by regularly depositing - every two weeks, for example - a portion of these sources of money:
- your salary if you have one OR
- your income if you’re a self-employed worker OR
- money you receive if you don’t have a job (employment insurance, social assistance, etc.)
The portion you have to deposit is calculated according to certain criteria set out in the law, such as the number of dependent children you have.
When you register for voluntary deposit, the interest rate on your debts is reduced to 5% (unless it was already lower than 5%). Voluntary deposit also makes debt collection stop. This means that you will no longer receive letters or calls from collection agencies.
You can register by going to the courthouse near where you live or work. At the courthouse, go to the “office of the Court of Québec”.
When you register for voluntary deposit, you must make a written statement giving certain information about your situation:
- your address
- your income
- your dependents (people reliant on you, such as children)
- a list of the people you owe money to and the amount you owe
Notice to Creditors
Once you’ve completed your statement, a notice is sent to all the creditors you listed in the list of people to whom you owe money.
Your creditors have 30 days after receiving this notice to make a claim confirming the amount you owe them. If they want to contest your statement because, for example, you didn’t indicate the correct amount, or they think you didn’t declare all your income, they must do so within 15 days after receiving the notice.
Dividing up the Money Deposited
The court clerk regularly uses the money you’ve deposited to pay back your creditors until all your debts are paid.
You will be notified every time one of your debts has been fully repaid.
This article explains in a general way the law that applies in Quebec. This article is not a legal opinion or legal advice. To find out the specific rules for your situation, consult a lawyer or notary.