The Voluntary Deposit (formerly known as the Lacombe Act) is a program administered by the Government of Quebec to assist an individual in financial difficulty (referred to as the debtor).
By enrolling in the Voluntary Deposit, the person must submit a portion of their income (equivalent to a wage garnishment) to the courthouse in their region for the benefit of their creditors until each debt is fully paid. The interest rate on all registered debts is automatically reduced to 5%. As long as the person is not in default, the Voluntary Deposit protects the debtor against wage garnishments and the seizure of furniture in their residence.
However, they are not immune to the seizure of their house, bank accounts, and car. An enrollment in the Voluntary Deposit has the same impact on the person’s credit rating as a bankruptcy, even if they pay 100% of their debts plus a 5% interest rate. That is why it is sometimes said that the Voluntary Deposit has all the disadvantages of a bankruptcy without the benefits. To enroll, the person must contact the courthouse in their region.