What is Voluntary Deposit?
The Voluntary Deposit of wages is governed by the Quebec Civil Court. It consists of depositing with the Court the portion of the debtor’s salary that is subject to seizure. The portion subject to seizure is equal to 30% of the gross earnings of a salaried employee. For a self-employed individual, it represents the gross revenues less the operating expenses.
The Voluntary Deposit stops potential seizures but interest continues to accrue at a rate of 5%. Even though you are making efforts to reimburse your creditors, your credit rating will be that of R-9, SIMILAR TO A BANKRUPTCY.
Do I qualify for the Voluntary Deposit program?
If you are a salaried employee, a self-employed worker or an unemployment beneficiary, you are eligible to subscribe to Voluntary Deposits.
What is the Voluntary Deposit process?
The major steps in the Voluntary Deposit process are as follows:
- Present yourself at the Quebec Civil Courthouse
- Make a declaration
- Make payments
As insolvency professionals, DEVLETIAN & ASSOCIATES INC. can provide you with further insight on whether filing for voluntary deposit through the court is your optimal solution compared to a consumer proposal or an assignment into bankruptcy. Contact us today for guidance through these difficult financial times.