What is Orderly Payment of Debts?

Orderly Payment of Debts (or OPD for short) is a debt repayment arrangement in the provinces of Alberta, Saskatchewan,  and Nova Scotia, administered under the Bankruptcy and Insolvency Act.

How OPD Works

  OPD begins with an application to the Court for an Order consolidating your unsecured debts into one monthly payment, with an interest rate of 5% and a payment period of up to 3 years to pay your unsecured creditors in full. OPD is legally binding on many types of unsecured creditors, providing that they have consented to be included in the arrangement when they are owed more than $1,000.00. Certain types of debts such as income taxes or business debts are not included, however.

The OPD Process

The OPD process is typically reflected on your credit report as a credit arrangement for 2 years after it’s been completed. Orderly Payment of Debts is administered by Provincial Credit Counselors and can be beneficial where you otherwise would be required to pay your creditors in full in a Bankruptcy or Consumer Proposal filing because of your income level or the assets you own.

Is OPD Right For You?

However, if you cannot afford the payment requirements and need more flexibility than the OPD guidelines provide, this process may not be best for you. For more details about Orderly Payment of Debts and all the options available to you, please contact me directly or consult our Orderly Payment of Debt FAQ.