Debt Relief Order FAQs

A Debt Relief Order (DRO) is a formal insolvency solution for people in England and Wales with little spare income and almost nothing of value. Included debts are frozen for 12 months and then written off, and the Official Receiver at the Insolvency Service makes the order rather than a court. Read our complete guide to Debt Relief Orders.

No. A DRO is free, involves no court and is for people with low income, few assets and qualifying debts under £50,000. Bankruptcy costs £680, has no debt limit and can involve selling your home or other assets. See DRO vs bankruptcy compared.

Normally 12 months from the date it is approved, known as the moratorium period. The Official Receiver can extend it in limited circumstances. Our guide to how a DRO works walks through the timeline.

Yes. The £90 application fee was abolished on 6 April 2024, and the approved intermediaries who submit applications work for free advice organisations. There may be small indirect costs, but no fee is payable to anyone. The DRO costs page explains more.

The Official Receiver, an officer of the Insolvency Service. They check the application your approved intermediary submits and can approve it, ask for more information or refuse it. There is no court hearing. See how the application is decided.

No. Only an approved intermediary can submit a DRO application. These are approved debt advisers, usually at Citizens Advice, StepChange, National Debtline or a local advice agency. Our guide on finding free, approved debt advice shows where to start.

You may qualify if your qualifying debts are under £50,000, your spare income is under £75 a month, your assets are worth under £2,000 and you own no property. You must also have lived or worked in England or Wales in the last three years. You cannot be bankrupt or in an IVA, or have had a DRO in the last six years. The eligibility guide covers each test.

Your qualifying debts must total less than £50,000, a limit raised from £30,000 on 28 June 2024. Excluded debts such as student loans and court fines do not count towards the figure but must still be listed. See the debt, income and asset limits.

You must have less than £75 a month left after reasonable household expenses. There is no cap on gross income, only on what remains once rent, bills, food and travel are paid, worked out using the Standard Financial Statement. See how spare income is calculated.

Your assets must be worth less than £2,000 in total, counting savings, valuables, investments and shares. Household goods, clothing, furniture and work tools are normally disregarded, and one vehicle has its own £4,000 rule. The asset rules explain what advisers count.

Yes. Being employed, self-employed or part-time does not stop you; the only income test is the £75 a month spare income limit. A few roles have their own insolvency rules and some contracts require disclosure, so check yours. Read DRO and employment.

No. Owning, part-owning or having any interest in property rules you out, even jointly owned property, property abroad or a home in negative equity. Homeowners usually need to look at other debt solutions; see DRO and homeownership for why.

Usually, if you own one vehicle worth less than £4,000, and a vehicle adapted for a disability is disregarded whatever it is worth. A car on hire purchase is not owned outright, so your adviser will check the agreement, any equity and whether the payments are reasonable. Our vehicles guide covers each case.

Not the England and Wales scheme, which requires you to have lived or worked there within the last three years. Scotland has the Minimal Asset Process and Northern Ireland runs its own DRO scheme. See the full DRO requirements.

Only if your previous DRO was approved more than six years ago. If it was more recent, an adviser can look at whether bankruptcy, a Debt Management Plan or another option would work instead. The requirements page lists the previous-insolvency rules.

Not while the IVA is in place, nor if you are bankrupt, subject to an interim order or facing a pending bankruptcy petition, unless the court agrees. If your IVA has failed, an adviser can assess whether you now qualify. See how a DRO compares with an IVA.

Most ordinary unsecured debts: credit and store cards, catalogues, overdrafts, personal and payday loans, buy-now-pay-later balances and utility, rent and council tax arrears. Tax debts, benefit overpayments, money owed to family or friends and a sole trader's business debts also qualify. Our qualifying debts guide has the full list.

Child maintenance and CSA arrears, family proceedings debts, court fines, confiscation orders and student loans are excluded and must still be paid. So are Social Fund loans, secured debts, court-awarded personal injury damages and an unpaid TV licence. Fraud debts can be listed but are not written off. See debts not covered by a DRO.

Yes, council tax arrears are a qualifying debt. Instalments that fall due after the order is approved are a new liability and must be paid as normal. The qualifying debts page explains how arrears are treated.

Yes, but including them does not guarantee you keep your tenancy. A landlord may still be able to seek possession for the arrears, and the DRO does not stop a tenancy ending by other routes. You must keep paying ongoing rent. Read about what happens during a DRO.

Money owed to relatives or friends is a qualifying debt and must be listed; you cannot pick and choose. Paying one creditor ahead of the others in the two years before you apply can count as a preference and lead to refusal. See qualifying debts.

A debt left off the application is not covered by the order and is not written off. Tell your adviser and the Official Receiver as soon as you realise, as adding a debt later is only possible in limited cases. Our guide to preparing your application shows how to find every debt.

A joint debt can be included, but the order only protects you. The other person remains liable for the full balance and should get their own advice before you apply. See how joint and secured debts are treated.

You must not borrow £500 or more, open a bank account or seek an overdraft without disclosing the DRO, and must not write cheques that will bounce. You also cannot act as a company director without court permission or trade under another name without disclosing the order. Breaking these rules is a criminal offence; read the restrictions guide.

Listed creditors must stop asking for payment or taking action to recover the debt. They can still send statements, which does not mean the DRO has failed. If a listed creditor demands payment, tell your adviser or the Official Receiver. See what happens during a DRO.

Not for a debt included in the DRO, because listed creditors cannot take enforcement action without the court's permission. Bailiffs can still act on excluded debts such as court fines, and on any new debt after the order starts. More in during a DRO.

Tell the Official Receiver about any change that could affect your eligibility, such as a pay rise, new job, inheritance, lump sum or new asset. If you no longer qualify, or fail to report a change, the order can be revoked. Our guide to changes in circumstances explains more.

Yes. The Official Receiver can revoke a DRO if you no longer qualify, gave inaccurate information or fail to co-operate, and creditors can object. If it is revoked, the included debts become payable again. See when a DRO can be revoked.

Yes, if you are renting; tell the Official Receiver your new address. Letting agents often run credit checks, so you may be asked for a guarantor. Buying a home would give you an interest in property, so speak to your adviser first. See how a DRO affects your credit file.

Not automatically; the Insolvency Service does not write to your employer. Your name does appear on the public Individual Insolvency Register during the order and for three months afterwards. Some contracts and regulated roles require you to disclose insolvency, so check yours. Read DRO and employment.

If the order has not been revoked, the listed debts are discharged and the restrictions end. Excluded debts and anything borrowed after the order started remain payable. Keep the confirmation paperwork in case a creditor contacts you later. See what happens after a DRO ends.

Six years from the date it was approved. Included debts are usually marked as defaulted and later satisfied, and each default stays for six years from its own date. Your Individual Insolvency Register entry is removed three months after the DRO ends. Our credit score guide explains how to rebuild.

Not during the order, and it is likely to be difficult while the DRO remains on your credit file. Lenders set their own criteria; some may consider you once the entry has gone and you have a record of managing money well. See rebuilding after a DRO.

Six years after your previous DRO was approved. If you run into serious difficulty before then, an adviser can look at other options. See the DRO requirements and our comparison of debt solutions.

Citizens Advice, StepChange, National Debtline and local advice agencies all give free, confidential advice, and Business Debtline helps the self-employed. The MoneyHelper debt advice locator can find a service near you. Our guide to free, approved debt advice explains what to expect.

No. There is no fee, free advisers do not charge, and a paid firm cannot get you a DRO faster or make approval more likely. Some fee-charging firms steer people towards solutions that earn them money. See why a DRO should cost you nothing.

Breathing Space, formally the Debt Respite Scheme, gives you 60 days of protection from creditor action, interest and charges while you get advice, and a mental health crisis version lasts for your treatment plus 30 days. It is not a debt solution itself, but it can buy time to have a DRO assessed. Read more on our other debt solutions page.