Debt Options Guide
Orderly Payment of Debts (OPD)
Updated
Orderly Payment of Debts is a court-ordered consolidation under Part X of the Bankruptcy and Insolvency Act, available only in provinces that have opted in (including Alberta, Saskatchewan, Nova Scotia and Prince Edward Island). You repay 100% of your unsecured debts through one monthly payment, with interest heavily reduced, and creditors are generally stopped from suing or garnisheeing you while you comply.
How an OPD works
- Apply through the provincial administrator or an approved credit counselling agency
- Your debts are listed and a monthly payment is set by consolidation order from the court
- You pay the administrator; it distributes to creditors
- Creditors covered by the order can't take legal action while you keep up
OPD vs consumer proposal
An OPD repays everything you owe at low interest; a consumer proposal usually repays only part of it. A proposal is open in every province and handled by a Licensed Insolvency Trustee. If you can afford the full principal over a few years, an OPD may cost more in total but avoids an insolvency filing.
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Related guides
- Consumer Proposal in Canada: How It WorksHow a consumer proposal works in Canada: who qualifies, the $250,000 limit, the 5-year maximum, the creditor vote, credit impact and what it costs.
- Credit Counselling and Debt Management PlansHow non-profit credit counselling and debt management plans work in Canada, what they cost, how they affect credit, and how they differ from a consumer proposal.
- Debt Consolidation Loans in CanadaWhen a debt consolidation loan makes sense in Canada, how it compares with a debt management plan or consumer proposal, and the risks of using home equity.
Sources
DebtDefender is an independent information site, not a Licensed Insolvency Trustee or law firm. This guide is general information, not advice for your situation. See our disclaimer.