You may qualify for a Debt Relief Order if you owe less than £50,000 in qualifying debts and have less than £75 a month spare. Your assets must be worth less than £2,000, though one vehicle worth under £4,000 is ignored. You must not own or have a share in any property, and you must have lived or worked in England or Wales in the last three years.
You must also not be bankrupt, in an IVA or subject to a DRO made in the last six years. Only an approved debt adviser can confirm eligibility.
- < £50,000Total qualifying debts
- < £75Spare income each month
- < £2,000Savings and other assets
- < £4,000One vehicle disregarded
The DRO limits at a glance
All nine criteria in the table must be met on the same date.
| Criterion | Rule | Notes |
|---|---|---|
| Qualifying debts | Less than £50,000 | Excluded debts do not count towards the limit but must still be listed |
| Spare income | Less than £75 a month | After reasonable household expenses, using the Standard Financial Statement |
| Assets | Worth less than £2,000 in total | Ordinary household goods, clothing and tools of your trade are normally ignored |
| Vehicle | One vehicle worth less than £4,000 disregarded | A vehicle adapted for a disability is disregarded whatever its value |
| Property | No home or other property, or any interest in one | Includes shares, joint ownership and property abroad, even with negative equity |
| Connection to England or Wales | Lived or worked there within the last 3 years | Scotland and Northern Ireland have separate schemes |
| Other insolvency | Not bankrupt, not in an IVA, no interim order or pending petition | A pending bankruptcy petition can sometimes be allowed by the court |
| Previous DRO | None in the last 6 years | Counted from the date of the earlier order |
| Conduct in the last 2 years | No preferential payments or undervalue transactions | Can lead to refusal or later revocation |
For the rules you agree to follow once an order is made, see DRO requirements and rules.
Qualifying debts under £50,000
The total of your qualifying debts must be less than £50,000 when the application is submitted. The limit was raised from £30,000 on 28 June 2024. Qualifying debts include credit cards, loans, overdrafts, catalogues, payday loans, rent and utility arrears, council tax arrears and money owed to friends or family. The full list is on our qualifying debts page.
Debts that cannot be included, such as student loans, child maintenance arrears and court fines, do not count towards the £50,000. They must still be listed and paid. Joint debts count in full, so a £10,000 loan shared with a partner adds the whole £10,000 to your total.
Spare income under £75 a month
After paying reasonable living costs, you must have less than £75 a month left over. "Reasonable" is judged using the Standard Financial Statement, the budgeting format used by debt advisers. Rent, council tax, utilities, childcare and travel to work are allowed where they are genuine.
Wages, benefits, pensions, tax credits, maintenance and contributions from other household members all count as income. Being employed does not rule you out. The test is about what is left, not where it comes from. See DRO and employment and the income and asset limits page.
Assets under £2,000
Your savings, investments, valuables and anything else of value must total less than £2,000. Ordinary furniture, appliances, clothing, bedding and the tools you need for your work are normally disregarded, as is one vehicle within the limit below.
A pension you cannot yet access is usually disregarded, but a lump sum you could draw now may count even if you have not taken it. Money owed to you can also count.
Can you keep your car? The £4,000 vehicle rule
You can keep one car, van or motorbike worth less than £4,000 without it counting towards the asset limit. The threshold was raised from £2,000 on 28 June 2024. A second vehicle is counted at its full value.
A vehicle adapted because of a disability, yours or a dependant's, is disregarded whatever it is worth. With hire purchase or conditional sale you do not own the vehicle until the final payment. The adviser then checks the agreement, any equity and whether the payments are a reasonable expense. See our DRO and vehicles page.
No property, even with negative equity
You must not own your home or any other property, in the UK or abroad, and you must not have an interest in one. Negative equity does not help, because any ownership is disqualifying. Joint ownership, a share in a family member's property and shared-ownership schemes all count.
Renting or living with family is fine. If you own property, bankruptcy or an IVA may be more realistic. See DRO and homeownership.
Where you live and your insolvency history
Three further conditions cover where you have lived, your past insolvency and your recent conduct.
Connection to England or Wales
You must have lived or carried on business in England or Wales at some point in the last three years. DROs are not available in Scotland, which has the Minimal Asset Process, or in Northern Ireland, which has its own DRO scheme.
No current or recent insolvency
You cannot get a DRO if you are bankrupt, in an IVA or subject to an interim order. A pending bankruptcy petition is also a bar unless the court allows the DRO to proceed. You cannot have had a DRO in the last six years, and a revoked DRO still counts.
Your conduct in the last two years
The adviser and the Official Receiver look back two years for payments that favoured one creditor over others, and for assets sold or given away below their value. Either can lead to refusal or later revocation.
Common reasons people are refused, and how to check
Most refusals come down to a handful of situations.
- They own or part-own a property.
- Their spare income is £75 a month or more on a realistic budget.
- Joint debts, counted in full, push the total to £50,000 or above.
- Savings, an accessible pension lump sum or a second vehicle take assets over £2,000.
- They are already in an IVA or bankruptcy, or had a DRO in the last six years.
- They paid one creditor ahead of the rest, or gave away something of value, in the last two years.
How to check your own position
Our eligibility checker gives a quick, private indication of which criteria your answers may affect. An approved debt adviser then confirms it. If you are refused, our guide to what to do if a DRO is refused covers the options.
Before you rely on this page
Debt Relief Order is an independent educational website. We are not the Insolvency Service and we do not provide regulated debt advice. Eligibility for a DRO can only be assessed by an approved debt adviser, and the figures here should be checked against current GOV.UK guidance before you rely on them.
Sources and further reading
- GOV.UK / Insolvency Service, How to get a Debt Relief Order (DRO), updated 28 June 2024
- GOV.UK, Options for dealing with your debts: Debt Relief Orders
- Citizens Advice, Debt and money
- StepChange, free debt advice