How to Apply for a Debt Relief Order

Can you apply for a DRO yourself?

No. There is no form you can fill in yourself. Only an approved intermediary, a debt adviser authorised to submit DRO applications, can send one in. The adviser's role is to check that you meet every criterion and that a DRO is the right solution. They must also consider the alternatives with you.

Before you start, it helps to read the eligibility criteria and the advantages and disadvantages. If you are clearly outside one of the limits, for example because you own your home, the adviser will steer you towards a different solution.

Finding an approved intermediary

Most approved intermediaries work at free organisations such as Citizens Advice, StepChange, National Debtline or a local advice agency. Business Debtline helps people who are self-employed. You can find a provider near you through the MoneyHelper debt advice locator, and our guide to finding free debt advice explains what to expect.

Never pay a company to arrange a DRO. Approved intermediaries do not charge, and a paid "DRO service" simply passes you to one. See DRO costs.

The DRO application step by step

1. Have a full financial assessment

   The adviser builds a budget using the Standard Financial Statement. It records all income, including wages, benefits and pensions, and all reasonable outgoings. The figure left over is your spare income, which must be below £75 a month.

2. Declare everything you own and the last two years

   The adviser lists everything of value, values any vehicle and checks the asset limit. They also ask whether you have sold or given away anything cheaply, or paid one creditor ahead of the others, in the last two years.

3. Gather your documents

   You collect statements for every debt and proof of your income, housing costs and bills. The list in the next section shows what advisers usually ask for.

4. Check the draft application

   The adviser enters your creditors, budget and assets, and you go through it line by line. Every creditor must be included, even small ones and debts to family, because a debt left off the order is not covered. You confirm the information is true and complete.

5. Submission to the Insolvency Service

   The approved intermediary submits the application online. There is nothing for you to post and no fee. Once submitted, stop paying the listed creditors unless the adviser tells you otherwise.

6. The Official Receiver's decision

   The Official Receiver can approve the order, refuse it or ask for more information. Refusal is most often because a criterion is not met or because of something in the two-year look-back. If information is requested, the adviser deals with it for you.

7. Approval and what follows

   You receive confirmation of the order with its date and the list of creditors covered. Keep this paperwork permanently. Your details go on the Individual Insolvency Register, the DRO appears on your credit file and the 12-month period begins.

What documents you need

The more complete your paperwork, the faster the application comes together. Advisers typically ask for the following.

• Recent statements or letters for every debt, showing the creditor's name, reference number and balance.
• Payslips, benefit award letters or pension statements covering your income.
• Bank statements for the last few months.
• Your tenancy agreement or proof of housing costs, plus council tax, energy, water and phone bills.
• Vehicle details, including any finance agreement.
• Details of savings, premium bonds, pensions or other assets, even small ones.
• Proof of identity, your National Insurance number and any previous addresses from the last three years.

A fuller checklist is in preparing for your DRO application. It is also worth sorting out your bank account early. If you owe money to your bank, it may freeze or close your account once the DRO is approved, so many people open a basic bank account elsewhere first.

How long does a DRO application take?

Timescales vary from person to person, and the process has two parts of very different length. Gathering information and completing the assessment can take weeks. It depends on how quickly creditors send statements and whether anything unusual needs checking.

Submission to decision is usually much shorter. Once the adviser has everything, decisions are often made within days, although the Official Receiver can take longer if more information is needed. The 12-month DRO period starts on the approval date, not the date you first sought advice.

Breathing Space while you prepare

If creditors are pressing you, your adviser can consider applying for Breathing Space under the Debt Respite Scheme. A standard Breathing Space gives 60 days of protection from most creditor action, interest and charges while you get advice. The mental health crisis version lasts for the length of the treatment plus 30 days.

What not to do while applying

A few common mistakes can derail an application.

• Do not take out new credit or run up new debt once you have decided to apply. It may not be included.
• Do not pay off one creditor in full while ignoring others, however tempting it is to clear a debt to a friend or relative.
• Do not sell or give away anything of value, or transfer money to someone else to hold.
• Do not leave out a creditor because you want to keep paying them. A debt that is not listed is not covered.

What to do if your application is refused

The adviser will explain the reason, which is usually that a criterion was not met on the figures provided. If circumstances change, for example because a debt is paid down or your spare income falls, you may be able to reapply. If a DRO is not realistic, the adviser will look at other debt solutions with you.

Creditors can also object after approval, and an upheld objection can lead to revocation. Our guide to what to do if a DRO is refused covers both situations. Once an order is made, what happens during a DRO explains what to expect next.