Orderly Payment of Debts

A designated provincial body will file for a Consolidation Order with the provincial courts on your behalf, which will combine all of your unsecured debts into one payment. The court will determine your monthly payment and use that money to pay back your creditors directly. The total amount you will pay will be equal to the total amount of your unsecured debt, plus 5% interest.

Orderly payment of debts may be a good choice if you:

• Live in a province that issues Consolidation Orders / Voluntary Deposit Service (AB, NS, QC)
• Are able to repay your debts within three years
• Have not had any legal proceedings against you from creditors If a creditor has already taken legal action against you, a Consolidation Order may not stop creditors from seizing your assets. Speak with a Licensed Insolvency Trustee to discuss other options to manage your debt.

Voluntary Deposit Law in Quebec

Voluntary deposits are designed for debtors who reside in Quebec to make regular, monthly payments to the Court based on their income and dependents. The Court then ensures that these payments are distributed to creditors. This arrangement lasts until 100% of your debts are paid in full, along with a 5% interest per year.

The voluntary deposit protects the debtor against salary garnishments and seizure of furniture found in the residence. It does not however, protect the debtor from seizure of the home, assets and/or furniture financed by an installment sales contract, bank accounts or a vehicle.

Because of the limited protection from seizures, continued interest payments, the obligation to pay a relatively high percentage of your income and receiving an R9 credit rating, this is often not the most sought-after debt solution for Quebecers looking to make a fresh financial start.

Life-Changing Debt Solutions is about finding the best choice that will work for you. To compare all the available options, contact us for a free confidential consultation.