Voluntary deposit
A solution for avoiding bankruptcy and asset seizure.
Voluntary deposit is a debt management solution that is specific to Quebec. It allows you to voluntarily deposit a percentage of your income with the Court of Québec which will then repay your creditors.
When should you consider a voluntary deposit?
A voluntary deposit may be considered in the following situations:
- You’re a Canadian citizen and Quebec resident;
- You have debts that you’d like to repay in full, including 5% interest on the total amount due;
- You’re in a position to pay a percentage of your gross income (generally 30%) to the Court of Québec which will pay your creditors;
- You’d like to avoid bankruptcy.
What is the process for a voluntary deposit?
A voluntary deposit includes the following steps:
- Appointment with the court clerk : If voluntary deposit is the best option for you, you must make an appointment with the Court of Québec clerk for your district;
- Registration : You must register for voluntary deposit on the Quebec government website.
What are the advantages of voluntary deposit?
Voluntary deposit has certain advantages. However, you must repay all of your debts in addition to an interest rate of 5%. Furthermore, your credit rating will be affected in the same way as a bankruptcy.
How can a Licensed Insolvency Trustee help you with the voluntary deposit process?
While a Licensed Insolvency Trustee does not directly intervene in the process, they can help you to assess your options. For example, they can analyze your file to determine whether a consumer proposal or bankruptcy could be beneficial for you and then point you toward the right resources. They can also suggest other solutions if you are unable to make the voluntary deposit payments.
Other solutions that can help
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Consumer proposal
This is an excellent alternative to bankruptcy. We negotiate an agreement with your creditors to reduce your debts and/or spread out your repayments over a longer period. Our Licensed Insolvency Trustees will take care of everything.
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Personal bankruptcy
Personal bankruptcy might be the solution you need to eliminate your debts and get a fresh start. We can guide you through every step.
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Debt consolidation
Consolidate all your debts into a single payment to simplify your financial management and protect your credit score.
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Renouncing an insolvent estate
If a loved one passes away and leaves more debts than assets, you have the option to refuse the inheritance and avoid assuming their debts. Our experts can guide you through this process.