Orderly Payment of Debts (OPD) Guide Canada 2025

Updated March 2025 · 8 min read · bremo.io

Orderly Payment of Debts (OPD) is a little-known but powerful debt relief option available in four Canadian provinces: Alberta, Nova Scotia, Prince Edward Island, and Saskatchewan. It is a court-administered consolidation program under Part X of the Bankruptcy and Insolvency Act (BIA) that lets you repay your debts at a reduced interest rate under court protection.

Which Provinces Offer OPD?

OPD is only available in provinces that have opted into Part X of the BIA:

• Alberta — administered through Money Mentors (formerly CCAB)
• Nova Scotia — administered through the Credit Counselling Society or other approved agencies
• Prince Edward Island — administered through approved agencies
• Saskatchewan — administered through approved credit counselling agencies

If you live in another province, OPD is not available to you. Ontario, BC, Quebec, Manitoba, New Brunswick, Newfoundland, and the territories do not have OPD programs. Residents of those provinces should explore Debt Management Plans through credit counsellors or formal insolvency options with an LIT.

How OPD Works

1. Apply through an approved credit counselling agency in your province
2. A counsellor reviews your income, debts, and budget
3. If eligible, they prepare a plan to repay your debts at 5% annual interest
4. The plan is filed with the court and a consolidation order is issued
5. All creditors included in the order must accept — no creditor vote required (unlike consumer proposals)
6. You make monthly payments to the administering agency
7. The agency distributes funds to creditors
8. Duration is typically up to 36 months (3 years)

Key Features of OPD

• Interest rate: Reduced to 5% per year on all included debts (compared to 19.99%+ on credit cards)
• Court protection: Creditors are legally bound once the order is issued — no collection calls, no lawsuits
• No creditor vote: Unlike a consumer proposal, 100% of eligible creditors must participate — their consent is not required
• 100% principal repaid: You repay the full amount owed, not a reduced portion
• No asset surrender: You keep all assets

OPD vs Consumer Proposal vs DMP: Comparison

• OPD vs Consumer Proposal: OPD requires full principal repayment; consumer proposal allows 20–70% reduction. Consumer proposals are available across all of Canada; OPD only in 4 provinces. OPD has a court-enforced binding on all creditors; consumer proposals require a creditor vote.
• OPD vs Debt Management Plan: Both repay 100% of principal with reduced interest. OPD has formal court backing, making it binding on unwilling creditors. A DMP relies on creditors voluntarily agreeing to participate, meaning some creditors can opt out.

Eligibility for OPD

To qualify for OPD, you generally must:

• Live in Alberta, Nova Scotia, PEI, or Saskatchewan
• Have unsecured debts that are manageable with a structured repayment plan
• Have sufficient income to make monthly payments
• Be dealing primarily with unsecured creditors (secured debts like mortgages and car loans are not included)

There is no formal minimum or maximum debt amount, but OPD works best for debt in the range of $5,000 to $75,000 — amounts small enough to realistically repay in 3 years but significant enough to need court protection.

Credit Impact of OPD

An OPD is noted on your credit report by the credit bureaus as a derogatory mark. The notation typically remains for 2–3 years after completion, similar to a Debt Management Plan. This is generally considered less severe than the impact of a consumer proposal (which stays 3 years post-completion) or bankruptcy (6 years post-discharge).

Is OPD Right for You?

OPD is worth considering if you:

• Live in AB, NS, PEI, or SK
• Can realistically repay 100% of your debt in 3 years with interest at 5%
• Want court-backed protection from collection actions without formal insolvency
• Have some creditors that might not cooperate with a voluntary DMP

If you cannot afford to repay 100% of principal, a consumer proposal may be more appropriate. Consult a Licensed Insolvency Trustee for a free assessment of all options.