CONSOLIDATION ORDERS AND VOLUNTARY DEPOSITS
Residents of British Columbia, Alberta, Saskatchewan, Nova Scotia or Prince Edward Island who are worried about creditors garnishing their wages or seizing their property can take advantage of a legal proceeding known as a consolidation order or an Orderly Payment of Debt Program or Lacombe Law. Quebec residents have access to a similar proceeding known as a voluntary deposit program.
You must go to a local court house to register for a consolidation order or voluntary deposit, or you can contact a credit counsellor, debt management consultant, or Trustee in Bankruptcy to do so on your behalf. You will then pay money to the court every month, which distributes the funds to your creditors and determines the payment amounts based on your income and ability to pay.
While a consolidation order or voluntary deposit usually reduces the interest you must pay, you are required to fully repay your debts within three years. Your credit rating is also adjusted to R7 (paying through a consolidation order, consumer proposal, or credit counselling debt management program) until you complete the order.
If creditors have already started legal proceedings, a consolidation order or voluntary deposit cannot stop them from seizing property. In this case, you would need to contact a Trustee in Bankruptcy to discuss other legal options.