Register for Voluntary Deposit

Other solutions | File a Consumer Proposal

Also known as the “Lacombe Law,” this solution applies only to residents of Quebec.

It consists of making a monthly payment to the Court which is determined based on your gross income (before taxes) and number of dependants. To settle your debt, you must disclose your total debt amount excluding any debt related to the mortgage of your home(s) and those related to a guaranteed loan for your vehicle. Disclosing your debts allows for determining the period in which you will be required to make monthly payments based on your income.

  • As long as you make your payments, you are protected from wage garnishments and seizures of property at your home.
  • Your new debt interest rate will be 5% per year and you will be required to make payments until the total debt has been paid off.
  • Given that your payments are calculated according to your gross income, you can rest assured that you can manage this.
  • Your credit rating (R-9) will be the same as though opting for bankruptcy.

To give you an idea of a voluntary deposit calculation, here is an example:

$500 per week is your gross income

– You will be allocated a weekly deduction of $180, as you have a dependant

Your weekly balance for the calculation of the voluntary deposit is therefore $320.

To proceed with the voluntary deposit, the Court will order you to pay 30% of the balance, i.e. $96 per week.

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There are a number of potential solutions, depending on your situation and objectives. It is never too late to begin a process to implement solutions. It would be my pleasure to meet you so you are equipped to get out of an uncomfortable situation.

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