Senior Estate Manager, Consumer Insolvency
Servicing Saskatoon and 1 other location
The program is only available in Alberta, Nova Scotia and Prince Edward Island. It is also available in Quebec, where it is referred to as the Voluntary Deposit Law (or formerly, Lacombe Law).
Using the Orderly Payments of Debt approach to repay debt will lower your credit rating. It is the same credit rating you would receive if you file a Consumer Proposal (R7). However, it will not be as low as the rating given to those who file for Bankruptcy (R9). Credit reporting agencies typically keep an Orderly Payments of Debt on your credit file for three years upon completion.
The total of all your debts must be paid in full plus 5% interest, usually within a period of three years, unless all creditors consent to an alternative arrangement and the Court approves it.
There is a small application cost, as well as the 5% monthly interest accrued during the repayment term.
The program is only available in Alberta, Nova Scotia and Prince Edward Island. It is also available in Quebec, where it is referred to as the Voluntary Deposit Law (or formerly, Lacombe Law).
Depending on the amount of debt and number of creditors you have, it may be possible for you to directly contact your creditors and negotiate a lower interest rate or a repayment schedule that works for you. With informal proposals, each of your creditors will expect you to present them with a plan outlining how you can pay them back. You may also be required to submit a sworn statutory declaration outlining all of your assets, debts and income....
Eligible debts that can be consolidated include: credit cards, consumer loans and public utilities. Ineligible debts include: mortgages, student loans, along with others.
Whether you qualify completely depends on the creditor you are contacting and the plan you present to them. Important factors such as the length of the repayment term and the amount of debt you have will impact their decision to accept or decline your proposal.
Using the Orderly Payments of Debt approach to repay debt will lower your credit rating. It is the same credit rating you would receive if you file a Consumer Proposal (R7). However, it will not be as low as the rating given to those who file for Bankruptcy (R9). Credit reporting agencies typically keep an Orderly Payments of Debt on your credit file for three years upon completion.
