THE VOLUNTARY DEPOSIT OF WAGES ENTAILS THE DEPOSITING AT THE LOCAL COURT-HOUSE OF THE SEIZABLE PORTION OF SALARY OR INCOME.

VOLUNTARY DEPOSIT OF WAGES (THE “LACOMBE LAW”)
The rules related to the voluntary deposit of wages are included in the Code of civil procedure of Québec. Many people today still use the term " To place yourself under the protection of the Lacombe law". It consists of a deposit with the Clerk at the Court-House of the portion of salary, subject to seizure, until 100% of the debt is paid (plus a annual rate of interest of 5%).

The portion subject to seizure represents 30 % of the gross salary (before income tax) from which the debtor is entitled to deduct an exemption of 120 $ per for a single person, 180 $ if the debtor has 1 or 2 dependants and 30 $ for each additional dependent. If a debt is related to alimony or child support, the portion subject to seizure will be 50 % of the gross revenue before income tax. For the self-employed worker, the portion subject to seizure is calculated using the gross revenues less operating expenses, before tax.

WHO MAY BENEFIT FROM THIS OPTION
The voluntary deposit of wages program is available to residents of Québec, whether they be salaried employees, self-employed, or beneficiaries of unemployment insurance.

WHAT DO YOU NEED TO DO?
In order to benefit from this program, one must present himself to the local court-house, civil division, in the judicial district of residence or place of employment, and must make a solemn declaration as regards to the creditors, the amount of debt, the name of the employer, the number of dependants, etc.

THE PROTECTION
The voluntary deposit of wages protects the debtor against certain seizures, on the condition that he(she) respects all of the requirements under the law, that is, the payment of his(her) deposits within the prescribed delays and the producing of the required declarations related to a change in his (her) personal situation.

In the same way, the voluntary deposit of wages protects the debtor against the seizure of wages, the seizure of household furniture & fixtures, and personal effects, as well as against being fired solely on the grounds that he has made a voluntarily deposit of the seizable portion of his wages.

THE LIMIT OF THIS PROTECTION
Nevertheless, the debtor is not protected against seizures of real estate, furniture & fixtures financed by conditional sales contracts, bank accounts and vehicles. Neither is he(she) covered against a seizure that would have been initiated before his registration with the voluntary deposit of wages.
In view of the fact of the limited protection offered by the voluntary deposit of wages, that the portion of salary subject to seizure is significant since the calculation is based on gross income, that the interest continues to run even if it is at a reduced rate of 5% and that the credit rating is R-9, (i.e. the same as a bankruptcy, the voluntary deposit of wages is often viewed as a less attractive option.