What is Voluntary Deposit?
Voluntary deposit is a procedure administered by the Court of Quebec that allows a debtor to pay back debts, avoid bankruptcy and protect one’s property and salary against possible seizures.
When you are registered for voluntary deposit, you must pay a portion of your salary to the court. This portion of your salary is based on your income and the number of dependents.
When a payment is made, the amount is shared among your creditors until all your debts are repaid. Annual interest of 5% will be applied on your balance. These interests will replace the original interests of your creditors.
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Calculation of Payments under Voluntary Deposit
The monthly payment due under a voluntary deposit procedure is based on your gross salary and your number of dependents. To get the amount, take your gross salary (your salary before any deductions and taxes) and subtract $120 if you have no dependents, $180 if you have one or two dependents, and substract $30 extra for each dependent beyond two. Your payment is 30% of this amount.
You can use the calculator below to estimate the amount of your monthly payments.
Please note that payments must be made within 5 days of your pay day. So, if you are paid each week, you will have to make a payment each week. If you are self-employed, you must make a monthly payment.
Why register for voluntary deposit?
- You are unable to pay your debts and your creditors are harassing you.
- Interest on your debts is high.
- The total of your debts is too high.
When not to register for voluntary deposit?
- Your debts are high.
- The duration of your repayment under the voluntary deposit is very long (several years).
- You cannot afford to have a portion of salary seized.
- Your real estate properties or your vehicle could be seized.