By registering for voluntary deposit, a person in financial difficulties (known as the “debtor”) can voluntarily pay back his or her creditors on the basis of the amount owed to each creditor and the debtor’s ability to pay.
Voluntary deposit is also a way for the debtor to avoid seizure or bankruptcy. The debtor’s property becomes unseizable, provided the debtor respects his or her obligations.
It is important for the debtor and his or her creditors to be fully aware of all the legal aspects of voluntary deposit to avoid making any mistakes.
Rights and obligations of the debtor
To benefit from voluntary deposit, the debtor must comply with all the obligations concerning:
- registration (by filing a declaration);
- regular payments of the agreed amount to the office of the Court of Québec;
- any changes to the debtor’s file.
A debtor who fails to comply with these obligations may lose the protection offered by voluntary deposit. The debtor can withdraw from the voluntary deposit procedure at any time by filing a notice with the court clerk.
Rights and obligations of the creditor
A creditor involved in a voluntary deposit procedure should be aware of all the related rights and obligations, in order to receive the correct payments while complying with the rules in force.