Orderly Payment of Debt Questions

How does orderly payment of debt work?
How do I qualify?
What are my eligible debts?
Does this affect my credit rating?
What If I don't qualify?
Is there any cost involved?
What is the Voluntary Deposit Law in Quebec?

How does orderly payment of debt work?

The total of all your debts must be paid in full plus 5% interest usually within a period of three years unless all creditors consent and the Court approves it.

How do I qualify?

The program is only available in Alberta, Saskatchewan, Nova Scotia and Prince Edward Island.

What are my eligible debts?

Eligible debts that can be consolidated include: credit cards, consumer loans and public utilities. Ineligible debts include: mortgages, student loans along with others. To find which debts are eligible, contact your local MNP Trustee.

Does this affect my credit rating?

Utilizing the Orderly Payments of Debt approach to repay debt,will lower your credit rating. It is the same credit rating you would receive if you file a Consumer Proposal (R7). However, it will not be as low as the rating given to those who file for bankruptcy (R9).It is important realize that credit-reporting agencies typically keep an Orderly Payments of Debt on your credit file for three years upon completion, instead of six years, for a bankruptcy.

What If I don't qualify?

If Orderly Payments of Debt doesn't seem like a viable option for you, there are other possibilities. You can visit our debt calculator, contact your local MNP Trustee for a free, confidential consultation or contact an MNP office near you.

Is there any cost involved?

There is a small application cost, as well as the 5% monthly interest accrued during the repayment term.

What is the Voluntary Deposit Law in Quebec?

For residents of Quebec, there exists the Voluntary Deposit Law (formerly known as the "Lacombe Law"). You can use a portion of your earnings (as determined by law) to make monthly payments to the Courts. You'll need to make sure you pay off 100% of your total debt with an annual interest rate of 5%. To learn more about the Voluntary Deposit Law, please contact your local courthouse.

» Top