What Is Orderly Payment of Debts?

What is Orderly Payment of Debts?

Orderly Payment of Debts (OPD) is a debt repayment program under Part X of the Bankruptcy and Insolvency Act (BIA). The program lets you consolidate your unsecured debts into a single monthly payment at a fixed 5% annual interest rate.

You pay back everything you owe, plus that 5% interest. No debt is forgiven.

The court issues a Consolidation Order that combines your debts and sets your payment amount based on what you can afford. A provincial administrator collects your payment and distributes it to creditors every three months.

A worked example

Say you owe $15,000 across three credit cards. Under OPD, you’d repay that $15,000 plus roughly $1,200 in interest over three years. That works out to about $450 per month, all in one payment, at a rate far lower than what your credit cards charge.

Compare that to carrying $15,000 at an average credit card rate of 20%. OPD’s 5% fixed rate saves you thousands in interest, but you’re still paying the full amount you owe.

Which provinces offer Orderly Payment of Debts?

Orderly Payment of Debts is not available across Canada. The program only operates in provinces that have proclaimed Part X of the BIA into force. As of 2025, those provinces are Alberta, Saskatchewan, Prince Edward Island, and Nova Scotia.

Source: Government of Canada – Bankruptcy and Insolvency Act, Part X

Manitoba and British Columbia used to offer OPD, but both discontinued their programs. BC’s Debtors Assistance Branch, which administered OPD, closed in 2002, and nobody administers the program there now despite Part X technically remaining in force.

Quebec’s Voluntary Deposit Service

Quebec operates a separate program called the Voluntary Deposit Service under the Code of Civil Procedure, also known as the Lacombe Law. The terms are comparable, with debts repaid in full at 5% interest, but the legal framework is provincial rather than federal. It’s not the same thing as OPD.

How does the Orderly Payment of Debts process work?

The Orderly Payment of Debts process starts with a financial assessment by your province’s designated administrator. In Alberta, that’s Money Mentors, a non-profit and the province’s exclusive OPD provider.

Applying for a Consolidation Order

Your administrator reviews your income, expenses, and debts, then files an application to the provincial court on your behalf. The application fee is $20 under the Orderly Payment of Debts Regulations.

Source: Government of Canada – Orderly Payment of Debts Regulations (C.R.C., c. 369)

The court issues a Consolidation Order that sets your monthly payment and triggers a stay of proceedings. That stay stops most creditors from pursuing lawsuits, wage garnishments, or collection calls.

The stay doesn’t cover everything. If a creditor has already won a judgment against you and started enforcing it, like a wage garnishment that’s already running, the Consolidation Order doesn’t stop it. The stay only blocks new collection actions.

Secured creditors aren’t bound by the order either. If a lender holds security on something you own, they can skip the OPD process and go after the asset directly under Section 232 of the BIA.

What types of debt qualify?

Orderly Payment of Debts covers most unsecured debts, including credit cards, lines of credit, payday loans, and personal loans. The program does not cover secured debts, such as mortgages or car loans, or business debts.

Who is eligible?

You must live in a participating province and be an insolvent person, meaning you can’t meet your debt payments as they come due. Corporations don’t qualify.

The program was originally restricted to claims under $1,000, but the regulatory limit was removed.

Source: Irwin Law – Bankruptcy and Insolvency Law, Chapter 20

How does Orderly Payment of Debts compare to a consumer proposal?

Orderly Payment of Debts and a consumer proposal both consolidate debt and provide creditor protection through a stay of proceedings. Both show as an R7 on your credit report. The differences come down to cost and availability.

	Orderly Payment of Debts	Consumer proposal
Amount repaid	100% of principal plus 5% interest	A portion of what you owe (often 20% to 50%)
Maximum term	Three to five years	Up to five years
Interest rate	Fixed at 5%	None
Availability	AB, SK, PE, NS only	All provinces and territories
Who administers	Provincial credit counselling body	Licensed Insolvency Trustee
Creditor vote required	No	Yes (majority in dollar value)
Assets	You keep everything	You keep everything
Credit report	R7 for three years after completion	R7 for three years after completion or six years from filing

For most people, a consumer proposal is the smarter route because you pay back less. OPD makes sense when your debt is small enough that paying it in full at 5% interest is cheaper than the fees and terms of a consumer proposal.

How does Orderly Payment of Debts affect your credit?

Orderly Payment of Debts shows on your credit report as an R7 rating, the same classification applied to a consumer proposal or a debt management plan. An R7 sits two notches above the R9 that bankruptcy gives you.

As of 2025, Equifax treats OPD the same as a consumer proposal on your credit report. The R7 stays for three years after you finish paying, with a maximum cap of six years from the date you filed.

So if you complete a three-year OPD, the R7 drops off three years later. If your repayment stretches to five years, the six-year cap kicks in, and it drops off sooner.

Money Mentors’ FAQ says two years after completion, but Equifax is the credit bureau that actually controls when the R7 is removed. Their published policy says three.

Source: Equifax Canada – Dispute Credit Report (FAQ: How long does information stay on my Equifax credit file?)

A first-time bankruptcy leaves an R9 for six to seven years after discharge. Because OPD requires full repayment, lenders view it more favourably than partial repayment or bankruptcy when you apply for credit afterwards.

What happens if you default?

If you stop making your Orderly Payment of Debts payments, the court can revoke the Consolidation Order. Under BIA Section 233, a creditor or the clerk of the court can apply to have the order set aside if you fail to meet the payment terms.

Once the order is revoked, every registered creditor regains the right to pursue you independently. Collection calls, lawsuits, and wage garnishments start again. You lose the 5% interest protection too, meaning creditors can revert to the original interest rates on your debts.

At that point, a consumer proposal or bankruptcy through a Licensed Insolvency Trustee are the two main alternatives. Don’t wait until the order is revoked to look into those options.

Talk to a Licensed Insolvency Trustee

If you’re dealing with debt you can’t resolve on your own, a Licensed Insolvency Trustee can walk you through every debt relief option available to you, including Orderly Payment of Debts. The initial consultation is free.

Frequently asked questions

Is Orderly Payment of Debts the same as debt consolidation?

Not exactly. A consolidation loan is a new loan from a bank that pays off your existing debts. Orderly Payment of Debts is a court-supervised program that consolidates your debts without a new loan. The court sets the payment, fixes interest at 5%, and distributes your money to creditors.

Can I keep my house and car if I enter the Orderly Payment of Debts program?

Yes. Orderly Payment of Debts only covers unsecured debts. Your mortgage and car loan are not included in the Consolidation Order. You still need to keep up with those secured payments separately.

Can I apply for Orderly Payment of Debts if I live in Ontario or British Columbia?

No. OPD is only available in Alberta, Saskatchewan, Prince Edward Island, and Nova Scotia. If you live outside those provinces, a consumer proposal or bankruptcy through a Licensed Insolvency Trustee are the two formal options available to you.

How much does Orderly Payment of Debts cost?

The court application fee is $20. Provincial administrators charge a small monthly administration fee to cover program costs. There are no penalties for paying off your debt early.

Can creditors refuse to participate in Orderly Payment of Debts?

Creditors have 30 days from the date the notice is sent to file objections with the court. They can object to the amount listed as owing, the payment terms, or the payment schedule. Secured creditors can elect to rely on their security rather than participate.

Source: Government of Canada – Bankruptcy and Insolvency Act, Section 221

What is the difference between Orderly Payment of Debts and bankruptcy?

With OPD, you repay 100% of your unsecured debts plus 5% interest and keep all your assets. In bankruptcy, a Licensed Insolvency Trustee takes your non-exempt assets and distributes the proceeds to your creditors.

OPD results in an R7 credit rating. Equifax removes it three years after completion or six years from the date filed, whichever comes first. Bankruptcy leaves an R9 for six to seven years after discharge.

Source: Equifax Canada – Dispute Credit Report (Purging Policies)

Who qualifies for Orderly Payment of Debts?

To qualify for Orderly Payment of Debts, you must live in Alberta, Saskatchewan, Prince Edward Island, or Nova Scotia. You also must be insolvent, meaning you can’t pay your debts as they come due. Corporations don’t qualify, and business debts can’t be included. Your provincial OPD administrator assesses your situation before filing the application.