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What is the voluntary deposit ?
Voluntary filing is an option offered free of charge by the Clerk of the Court of Quebec and is governed by the Code of Civil Procedure offering protection against seizure of wages and certain property.
This measure, formerly known as the Lacombe Act, allows individuals experiencing financial problems to repay their debts by making payments representing at least the seizable portion of their income at a legal interest rate reduced to 5%.
Who is the Voluntary Deposit for?
In general, this measure will not necessarily be appropriate for individuals with high incomes or large amounts of debt. This option will be particularly appropriate for individuals with low or no income and where the amount of debt is low. In other cases, it may be more expensive than other available options and may prolong the debt problem over a longer period of time.
How does the voluntary deposit work ?
First of all, you must go to the clerk's office of the Civil Chamber of the Court of Quebec at the courthouse of your municipality.
Then, you will have to file a return that will contain your personal information, your income and a detailed list of your creditors..
The Registry will determine the amount you will be required to pay on a monthly basis. The payments will be made to the Clerk of the Court of Québec and the Clerk of the Court will make a pro rata distribution to your creditors at least once a month.
Will I be protected against seizure by joining the voluntary deposit?
The voluntary deposit will protect you against wage and other attachments, however, it will not protect you against seizures of real estate, automobiles and furniture from the creditor who financed you for them.
How is the selectable portion calculated?
To determine the portion of your income that can be seized, you must declare the sum of your monthly income and deduct the amount exempted according to a scale that takes into account the number of dependents. Then, the seizable portion will represent 30% of the difference obtained. Here is an example of the exemption grid:
Number of dependents
Week
Every two weeks
Bimonthly
Monthly exemptions
None
273,17$
546,35$
591,88$
1183,75$
1
382,44$
764,89$
828,63$
1657,25$
2
437,07$
874,15$
946,99$
1893,98$
3
491,70$
983,41$
1065,36$
2130,71$
4
546,33$
1092,67$
1183,72$
2367,44$
5
600,96$
1201,93$
1302,09$
2604,17$
What will happen if the agreement is not respected?
If you fail to pay the amount set out in the undertaking, or if you fail to notify the Registrar of any changes to your declaration or if you fail to update your declaration annually, the Registrar may issue a notice of default requiring you to remedy the default within 30 days of the notice, failing which you will lose protection from seizure and your creditors will have further recourse against you.
Voluntary filing is an option offered free of charge by the Clerk of the Court of Quebec and is governed by the Code of Civil Procedure offering protection against seizure of wages and certain property. This measure, formerly known as the Lacombe Act, allows individuals experiencing financial problems to repay their debts by making payments representing at least the seizable portion of their income at a legal interest rate reduced to 5%.
Who is the Voluntary Deposit for?
In general, this measure will not necessarily be appropriate for individuals with high incomes or large amounts of debt. This option will be particularly appropriate for individuals with low or no income and where the amount of debt is low. In other cases, it may be more expensive than other available options and may prolong the debt problem over a longer period of time.
How does the voluntary deposit work ?
First of all, you must go to the clerk's office of the Civil Chamber of the Court of Quebec at the courthouse of your municipality. Then, you will have to file a return that will contain your personal information, your income and a detailed list of your creditors.. The Registry will determine the amount you will be required to pay on a monthly basis. The payments will be made to the Clerk of the Court of Québec and the Clerk of the Court will make a pro rata distribution to your creditors at least once a month.
Will I be protected against seizure by joining the voluntary deposit?
The voluntary deposit will protect you against wage and other attachments, however, it will not protect you against seizures of real estate, automobiles and furniture from the creditor who financed you for them.
To determine the portion of your income that can be seized, you must declare the sum of your monthly income and deduct the amount exempted according to a scale that takes into account the number of dependents. Then, the seizable portion will represent 30% of the difference obtained. Here is an example of the exemption grid:
| Number of dependents | Week | Every two weeks | Bimonthly | Monthly exemptions |
|---|---|---|---|---|
| None | 273,17$ | 546,35$ | 591,88$ | 1183,75$ |
| 1 | 382,44$ | 764,89$ | 828,63$ | 1657,25$ |
| 2 | 437,07$ | 874,15$ | 946,99$ | 1893,98$ |
| 3 | 491,70$ | 983,41$ | 1065,36$ | 2130,71$ |
| 4 | 546,33$ | 1092,67$ | 1183,72$ | 2367,44$ |
| 5 | 600,96$ | 1201,93$ | 1302,09$ | 2604,17$ |
If you fail to pay the amount set out in the undertaking, or if you fail to notify the Registrar of any changes to your declaration or if you fail to update your declaration annually, the Registrar may issue a notice of default requiring you to remedy the default within 30 days of the notice, failing which you will lose protection from seizure and your creditors will have further recourse against you.