Your total qualifying debts
Below £50,000Only debts that can go into a DRO count towards the limit. Student loans, child maintenance and court fines are left out, but you still have to pay them. See which debts qualify.
Debt Relief Order guide
Debt Relief Orders Explained: Check Your Options and Understand How They Work
A Debt Relief Order (DRO) can help people in England and Wales deal with debts they cannot afford to repay. This guide explains who qualifies, how the application works through an approved debt adviser, and what a DRO means for your finances.
Only an approved debt adviser can assess your eligibility and submit a DRO application. This site is an independent guide, not the Insolvency Service.
Debt Relief Order is an independent information resource. We are not the Insolvency Service or a government website. Read about our role.
The basics
What is a Debt Relief Order?
A Debt Relief Order is a formal way of dealing with debts you cannot repay. It is available in England and Wales to people with a low income, few possessions of value and debts below £50,000.
Once a DRO is approved, the debts listed in it are frozen for 12 months. You stop paying them, interest stops being added, and the creditors named in the order cannot chase you for the money. If your situation has not improved by the end of the year, those debts are written off.
A DRO is not a loan or a repayment plan. It is a legal insolvency procedure run by the Insolvency Service, and it comes with real consequences. Your details go on the public Individual Insolvency Register, the order stays on your credit file for six years, and you must follow a set of restrictions while it lasts.
Read the complete Debt Relief Order guideWho a DRO is designed for
- You owe less than £50,000 in qualifying debts
- You have less than £75 a month left after essential living costs
- You do not own your home or any other property
- Your savings and valuables are worth less than £2,000, not counting one vehicle worth under £4,000
- You have lived or worked in England or Wales in the last three years
If you can afford regular repayments, or you own a property, a DRO is unlikely to be open to you. Our comparison of debt solutions explains the alternatives.
Eligibility
Could you qualify for a Debt Relief Order?
An approved debt adviser checks six things before they can submit an application. Each one has its own rules and exceptions, so use these summaries as a starting point, not a verdict.
Your spare income each month
Below £75 a monthYour adviser works out what is left after reasonable household spending, using a standard budget. Wages and benefits both count as income. How spare income is calculated.
Your savings and other assets
Below £2,000Everyday household items are ignored. Savings, jewellery of value, investments and some pension lump sums are not. What counts as an asset.
Your vehicle
One vehicle under £4,000You can usually keep one vehicle worth less than £4,000. A more valuable car, or a second one, counts towards the asset limit unless an exception applies. The vehicle rules explained.
Your housing situation
No property interestYou cannot get a DRO if you own or part-own your home, even with no equity. Renting, lodging or living with family is fine. DROs and homeownership.
Where you live and past insolvency
England or Wales linkYou need a recent connection to England or Wales, must not be bankrupt or in an IVA, and must not have had a DRO in the last six years. The full requirements.
The process
How does a Debt Relief Order work?
You cannot apply for a DRO on your own. An approved debt adviser, sometimes called an approved intermediary, prepares and submits the application, and the Insolvency Service decides it. There is no fee and no court hearing.
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Check the eligibility rules
Compare the debt, income, asset and property limits with your own situation. If something clearly rules you out, such as owning your home, it is better to know now and look at other options.
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Speak to an approved debt adviser
Free advice is available from Citizens Advice, StepChange, National Debtline and local advice agencies. The adviser looks at your whole financial picture and will say if a different solution fits better. How to find free debt advice.
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Gather your financial information
You will need details of every debt, your income, your household spending, anything you own of value and anything you have sold or given away in the last two years. What to gather before your appointment.
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Your adviser submits the application
The adviser completes the online form and sends it to the Insolvency Service. If it is approved, the DRO starts straight away and your creditors are told. The application process in detail.
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Follow the rules for 12 months
You keep paying your ongoing bills and any excluded debts, follow the DRO restrictions, and report any change in your circumstances. At the end of the year the listed debts are normally written off. What happens after 12 months.
A balanced view
What are the benefits and drawbacks of a DRO?
For people who fit the criteria, a DRO offers real relief. It is still a serious step with lasting effects, and it is not the right answer for everyone.
Benefits
- The debts included in the order are normally written off after 12 months.
- Payments on those debts stop, interest is frozen, and listed creditors cannot take enforcement action.
- There is no application fee.
- It gives you a clear, legal route out of debt you cannot realistically repay.
- There is no court hearing. Your adviser handles the process.
Drawbacks
- The DRO stays on your credit file for six years, which makes borrowing harder and dearer.
- You must follow restrictions for 12 months, including telling lenders about the DRO before borrowing £500 or more.
- Not every debt is covered. Student loans, child maintenance and court fines still have to be paid.
- If your income or assets rise during the year, the Insolvency Service can cancel the order.
- Your name appears on the public Individual Insolvency Register until three months after the DRO ends.
Read the full advantages and disadvantages guide, including who may be better served by a different solution.
Interactive tool
Check whether you might meet the DRO criteria
Answer eight short questions about your debts, income, assets and housing. The checker runs in your browser, stores nothing, and shows which criteria your answers may affect. It is an educational guide only. It cannot confirm eligibility or replace an assessment by an approved debt adviser.
Compare
How does a DRO compare with other debt solutions?
A DRO is one of several ways to deal with problem debt in England and Wales. The right one depends on how much you owe, what you can afford each month and what you own.
Debt Relief Order
Freezes and then writes off qualifying debts for people with a low income, few assets and debts under £50,000.
- Cost
- Free
- Length
- 12 months
- Credit file
- 6 years
Bankruptcy
Writes off most debts with no upper limit, but assets including a home can be sold and there is a £680 fee.
- Cost
- £680
- Length
- Usually 12 months
- Credit file
- 6 years
Individual Voluntary Arrangement
A binding repayment plan run by an insolvency practitioner, usually over five or six years, with the balance written off at the end.
- Cost
- Fees from payments
- Length
- Typically 5–6 years
- Credit file
- 6 years
Debt Management Plan
An informal agreement to repay debts at a rate you can afford. Nothing is written off, and creditors do not have to agree or freeze interest.
- Cost
- Free from charities
- Length
- Until repaid
- Credit file
- Varies
Common questions
Debt Relief Order FAQs
A Debt Relief Order is a formal way of dealing with debts you cannot afford to repay. It is available in England and Wales to people with a low income, few assets and qualifying debts under £50,000. The debts in it are frozen for 12 months and then usually written off.
You may qualify if you owe less than £50,000, have less than £75 a month spare, have less than £2,000 in savings and assets, do not own property, have lived or worked in England or Wales in the last three years, and have not had a DRO in the last six years. An approved debt adviser must confirm this. Full eligibility guide.
Your qualifying debts must total less than £50,000 on the day you apply. Excluded debts, such as student loans, do not count towards the limit. If you are close to it, interest added before the application date can matter. Which debts qualify.
Yes. The DRO is recorded on your credit file for six years from the date it is approved, and the debts in it are usually marked as defaulted. Most lenders will see you as high risk during that time. DROs and your credit score.
Usually, if it is your only vehicle and worth less than £4,000. A vehicle adapted for a disability can be kept whatever it is worth. Cars on hire purchase follow different rules because you do not own them outright. Vehicle rules in detail.
Yes. Having a job does not stop you getting a DRO. What matters is how much is left after reasonable living costs, which must be below £75 a month. Many people on low or part-time wages qualify. DROs and employment.
Yes. The £90 application fee was scrapped on 6 April 2024, and advice from approved intermediaries at free advice charities costs nothing. You should never have to pay anyone to arrange a DRO. DRO costs explained.
If the order has not been cancelled, the debts in it are discharged and the restrictions end. Your entry on the register is removed three months later, but the credit file record stays for six years from approval. After the DRO ends.
More answers in our full Debt Relief Order FAQ.
Further reading
Guides to help you decide
Getting started
How to find free, approved debt advice
Where to go for a DRO assessment, what the first appointment involves and why you should never pay for it.
Application
Preparing for your DRO application
The documents and figures your adviser will ask for, and the mistakes that slow applications down.
During the DRO
What if your circumstances change?
Pay rises, windfalls and new debts: what you must report, and when a DRO can be cancelled.
Next steps
Understand your options before making a decision
A Debt Relief Order is the right answer for some people and the wrong one for others. Read the eligibility rules, compare the alternatives, then talk to a free, approved debt adviser who can look at your full situation.