Orderly Payment of Debts

If you are faced with significant and mounting debts, bankruptcy is a possible way out.

However, you should always analyze the alternative methods first, not least because filing for bankruptcy should be your very last resort.

An Orderly Payment of Debt, otherwise known as an OPD, could be the perfect debt payment alternative.

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What is an Orderly Payment of Debts?

OPDs are a form of financial program operated under the Bankruptcy and Insolvency Act.

It is often referred to as a ‘consolidation order’ due to the fact that they combine your unsecured debts into one payment.

The monthly repayment is decided based upon what you can afford to pay, taking income and outgoings into accounts.

An OPD application is made on your behalf by a Trustee while they also negotiate the repayment amount.

Once this has been agreed, it becomes a legally binding contract with the various creditors.

The interest rates are usually set to 5%, which is far lower than the rate you currently pay.

Generally speaking, the repayment terms will be set over a period of between 12 and 36 months.

This will depend on personal financial circumstances.

OPDs are deemed a far better solution than filing for bankruptcy in Canada due to a host of factors, including but not limited to:


  • Easy management, as the Trustee acts on your behalf;
  • You are protected from legal action such as wage garnishment;
  • It puts an end to credit harassment;
  • You avoid liquidating key assets, such as your home or vehicle;
  • It is accompanied by a financial education into budgeting and credit scores;
  • Any negative impacts on credit ratings are shorter-lived.


As a less severe alternative to bankruptcy that allows you to clear debt even when you’ve failed in the past, Orderly Payment of Debts are very popular.

It should be noted, though, that OPDs are only available in the following regions: Alberta, Nova Scotia, Prince Edward Island, and Saskatchewan.

If you live outside of these places, alternative options must be analyzed.

OPDs Versus Consumer Proposals

The concept of consolidating multiple debts into one monthly repayment plan encourages instant comparisons to Consumer Proposals.

While there are many similarities at a glance, such as the fact that Consumer Proposals are legally binding too, there are distinct contrasts to consider.

The most telling issues are:


  • Consumer Proposals extend the repayment term to five years, which can result in more affordable monthly payments but does mean that the negative financial impacts last a lot longer too;
  • Consumer Proposals can include reductions on the principle debt, as well as property tax and income tax debts;
  • It is possible that the Consumer Proposals will require the liquidation of some financial assets in order to settle your debts.


There are potential pros and cons to consider in relation to both options, while both are accepted as better options than bankruptcy, which should only be used when all other options are closed.

If you are hoping to start building for a better financial future, though, it’s likely that the speed of OPD clearances and shorter financial repercussions will make them the most appealing option.

Making an Application

If an Orderly Payment of Debts program is deemed the most suitable financial payment solution, it’s vital that you complete the application ASAP.

Taking proactive steps before personal finances slide any further is essential.

The truth is that the door to OPDs will be closed before the doors to Consumer Proposals or bankruptcy filings.

There are several key factors to consider when filing an OPD program application, including but not limited to:


  • The sooner you act, the less interest will have accumulated. This gives you the best shot at securing affordable payments over a shorter period;
  • Splitting small debts over 12 months can be a great way to move on with your financial future far sooner, but you must avoid leaving yourself short;
  • Gaining the support of an experienced Trustee gives you the best shot at securing a practical agreement that will improve your financial future;
  • When the OPD is accepted, you must keep to the payments. It’s also an excellent time to seek further education into budgeting and credit building.


Before starting the Orderly Payment of Debts, though, you should go the extra mile to check that this is the most effective debt relief strategy available.

A licensed Trustee isn’t only capable of representing your case.

Here at Bankruptcy Canada, we additionally offer thorough consultations to analyze all options to ensure that the best steps are taken along the road to financial freedom.

To find out more, get in touch at (877) 879-4770 today!

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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