Legal aspects of voluntary deposit

The voluntary deposit procedure is governed by the Code of Civil Procedure, which sets out the rules with which the debtor and creditor must comply.

Other rules specify the limit of the protection granted to the debtor and the public nature of all voluntary deposit files.

Suretyship

Voluntary deposit does not provide protection for a person who has offered to act as a surety or who has warrantor for the debtor’s debts. Such a person may also, if applicable, register for voluntary deposit and make the necessary payments.

Dismissal or suspension

If an employer, contracting party or third person substantially changes or ends a contractual relationship with the debtor, the onus is on that person to prove that they did not do so because the debtor resorted to voluntary deposit.

An employer, contracting party or third person who is unable to offer proof may be required to pay damages.

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