Orderly Payment of Debts

What is Orderly Payment of Debts?

Orderly Payment of Debts (OPD) is a debt payment alternative to bankruptcy in Canada, offered under the Bankruptcy and Insolvency Act.

OPD is available only in Alberta, Saskatchewan, Prince Edward Island, and Nova Scotia. If you live in one of these provinces, an OPD program (also known as a “consolidation order”) may be a suitable solution to your debt problems. (Manitoba and British Columbia had OPD programs, but have cancelled them.)

OPD is similar to consumer proposals, but considered to be a less drastic solution. It extends the time (up to three years) to pay off your debts, and is legally binding on your creditors. However, it differs from proposals in that you cannot freeze the interest or negotiate a reduction to the principal.

Features of Orderly Payment of Debts

  • Creditors are contacted on your behalf
  • Consolidates all your unsecured debts
  • One monthly payment, based on what you can afford to pay
  • Repays your debts in full in three years or less
  • Interest rate reduction of 5%
  • Legally binding on your creditors
  • Protects you from legal actions (such as garnishment) and credit harassment
  • You keep your assets, such as your house and car.
  • You have help from a counsellor
  • You are strongly encouraged to learn budgeting and credit skills at free workshops
  • You can learn how to rebuild a good credit rating
  • Avoids more extreme solutions, namely consumer proposals and bankruptcy

What Should I Do?

For more details about Orderly Payment of Debts, and help to determine whether it is the right solution in your circumstances, please contact us now for a free consultation. We will review your situation with you and help you decide the best possible course of action.