What is Orderly Payment of Debts under the Bankruptcy and Insolvency Act?
In short
Orderly Payment of Debts is Part X of the federal Bankruptcy and Insolvency Act, a court-supervised repayment process for consumer debt. It only applies in a province the Governor in Council has declared it into, at that province's request — the Act names no list. A trustee or the local court can confirm whether it applies where you live.
Updated
What is Orderly Payment of Debts?
Orderly Payment of Debts, often shortened to OPD, is Part X of the federal Bankruptcy and Insolvency Act. It sets up a court-supervised process for repaying consumer debt through consolidated payments, as an alternative structure to a consumer proposal or bankruptcy for the provinces where it is in force.
It is a federal statute, but the way it comes into force is not automatic and not uniform — which is the point of the rest of this page.
Where does Part X actually apply?
This page does not name any province. Section 242(1) of the Bankruptcy and Insolvency Act provides that Part X applies in a province only where the Governor in Council has declared, by order, that it applies in that province — and that declaration is made at the request of the province itself. The Act does not attach a list of provinces to the section.
That means whether Part X is currently in force where you live is a fact about a specific order, not about the statute's wording, and it can change if a province's arrangement changes. A general guide stating a province by name would be stating something the Act itself does not state, and the risk of that being wrong or out of date is exactly why this page will not do it.
Why does the Bankruptcy and Insolvency Act not just list the provinces itself?
Because Parliament structured Part X to come into force province by province, on request, rather than nationally at once. Section 242(1) makes the province's own request, and a Governor in Council declaration responding to it, the trigger — not a fixed schedule written into the Act. That design lets a province opt into the mechanism, or not, on its own timeline.
How does Orderly Payment of Debts compare with a consumer proposal or bankruptcy?
All three sit under the same federal insolvency framework, but they are structured differently and are not available in the same way everywhere.
Three federal routes for consumer debt
| Orderly Payment of Debts | Consumer proposal | Bankruptcy | ||
|---|---|---|---|---|
| Legal basis | Part X of the Bankruptcy and Insolvency Act | The Bankruptcy and Insolvency Act | The Bankruptcy and Insolvency Act | |
| Where it is available | Only where a Governor in Council declaration is in force for that province | Nationally, through a Licensed Insolvency Trustee | Nationally, through a Licensed Insolvency Trustee | |
| Who administers it | A court-supervised process under Part X, where it applies | A Licensed Insolvency Trustee | A Licensed Insolvency Trustee |
Legal basis
- Orderly Payment of Debts
- Part X of the Bankruptcy and Insolvency Act
- Consumer proposal
- The Bankruptcy and Insolvency Act
- Bankruptcy
- The Bankruptcy and Insolvency Act
Where it is available
- Orderly Payment of Debts
- Only where a Governor in Council declaration is in force for that province
- Consumer proposal
- Nationally, through a Licensed Insolvency Trustee
- Bankruptcy
- Nationally, through a Licensed Insolvency Trustee
Who administers it
- Orderly Payment of Debts
- A court-supervised process under Part X, where it applies
- Consumer proposal
- A Licensed Insolvency Trustee
- Bankruptcy
- A Licensed Insolvency Trustee
A consumer proposal and bankruptcy are available across the country through a Licensed Insolvency Trustee. Orderly Payment of Debts is the one route on this table whose availability depends on where you live — confirm it locally rather than assuming either way.
What does the process generally involve where Part X does apply?
Because the mechanism is only in force in some places and this page does not confirm where, the steps below describe the general shape of a court-supervised consolidated-payment process rather than a procedure specific to any court.
The general shape, where the mechanism applies
- 01
Confirm it actually applies to you
Ask a Licensed Insolvency Trustee or your local court whether the relevant Governor in Council declaration is currently in force where you live.
- 02
An application is made to the court
Where it applies, a consolidation order proceeding is initiated through the local court process for Part X.
- 03
The court issues a consolidation order
A court order sets out a single consolidated payment covering the debts included, replacing separate payments to separate creditors.
- 04
Payments are made under court supervision
You make the consolidated payment as directed by the court order for as long as the process is in effect.
How can you find out whether Orderly Payment of Debts is available where you live?
Two sources can actually answer this — this page cannot.
Who to ask
A Licensed Insolvency Trustee deals with consumer insolvency routes as their profession and can tell you directly whether Part X is currently in force in your province, alongside explaining whether a consumer proposal or bankruptcy would suit you better regardless.
The court in your area that would administer a Part X proceeding, if one exists locally, can also confirm current status directly rather than through a secondary summary.
What effect would this have on your credit file?
This page does not state a specific retention period for an Orderly Payment of Debts filing, because none was verified for it. A consumer proposal, which follows a different process under the same Act, is described by the Financial Consumer Agency of Canada as removed three years after all included debts are paid off, or six years after signing, whichever comes first — a trustee can tell you whether a comparable reporting practice applies to Part X where it is in force.
Is this legal advice?
No. This page describes what section 242(1) says and how Part X relates to the other federal routes, in general terms. It does not confirm whether Part X applies where you live, and it does not apply anything here to your specific debts — a Licensed Insolvency Trustee or a lawyer can do both.
Frequently asked questions
- Does Orderly Payment of Debts require declaring bankruptcy?
- No. It is a separate mechanism under Part X of the same Act, structured as a court-supervised consolidated-payment process rather than a bankruptcy. Where it applies, it sits alongside — not inside — a bankruptcy filing.
- Can a Licensed Insolvency Trustee still help me if Part X does not apply where I live?
- Yes. A trustee offers a consumer proposal and bankruptcy nationally regardless of whether Part X is in force in your province, and can explain which of those routes fits your situation at no cost for the first meeting.
- Is Orderly Payment of Debts the same thing as a consumer proposal?
- No. They are different mechanisms under the same Act: a consumer proposal is filed through a Licensed Insolvency Trustee and available nationally; Orderly Payment of Debts is a court-supervised process under Part X, available only where a provincial declaration is in force. See our comparison table above.
- Who administers Part X where it does apply?
- The process is court-supervised through the local court process set up for it, rather than run by a Licensed Insolvency Trustee the way a proposal or bankruptcy is. The specific court and procedure are a local detail this page does not state — ask the court in your area.
- Does the federal government publish a list of provinces where Part X applies?
- Section 242(1) of the Act itself carries no such list — availability follows individual Governor in Council declarations made at each province's request. This page does not maintain or link a list either, because it can change and the accurate current answer belongs with a trustee or the court, not a general guide.
- What should I do if I've heard of Orderly Payment of Debts but don't know if it applies to me?
- Ask a Licensed Insolvency Trustee at a free first meeting, or ask your local court. Either can confirm current availability directly and, either way, can also explain the consumer proposal and bankruptcy routes that are available to you regardless of where you live.