What is an Orderly Payment of Debts Order? On an application to court and if approved, the debt will be required to be paid off in full, plus 5% interest, over a time not to exceed 3 years. The provinces that can file Orderly Payment of Debts (OPD) are Alberta, Saskatchewan, Prince Edward Island, Nova Scotia and Quebec where the program is known as the Lacombe Law.
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What is an Orderly Payment of Debts Order in Canada?
Orderly Payment of Debts also known as a Consolidation Order is a way of repaying debts spelled out in Part X of the Bankruptcy and Insolvency Act.
An Orderly Payment of Debts or Consolidation Order applies to unsecured debts. It does not apply to the following debt:
Federal or Provincial debt:
School district debt;
Wages claim in Alberta;
Claim for mechanic’s lien in Alberta;
Claim for a lien under the Garagemen’s Lien Act in Alberta;
Any debt claimed by a province to NOT below in this part.
Features of Orderly Payment of Debts:
- Creditors are contacted on your behalf;
- Consolidates all your unsecured debts;
- One monthly payment, based on what you can afford to pay;
- Repays your debts in full in three years or less;
- Interest rate reduced to 5%;
- Legally binding on your creditors;
- A Stay of Proceedings prevents creditor from taking legal to collect their debts and Collect calls are stopped;
- You keep your assets, such as your house and car;
- Have help from a counsellor;
- You are provided the opportunity to learn budgeting and credit skills;
- You can learn how to rebuild a good credit rating;
- If a creditor has already taken legal action against you, a Consolidation Order may not stop creditors from seizing your assets.