- Debt Solution
Debt Relief Order (DRO)
If you’re overwhelmed by debt but have little income or few assets to your name, a Debt Relief Order could give you 12 months of legal protection from your creditors and, if your situation hasn’t changed by the end of that period, your qualifying debts could be written off entirely. It’s a formal, legally binding solution with strict eligibility criteria, so it’s worth checking carefully whether it fits your circumstances.
- Available in England, Wales & Northern Ireland.
- Scotland has different debt solutions, speak to us to find out what applies to you.
*Takes less than 60 seconds. No impact on your credit score to check.
Check if you qualify
- 60 seconds
- No credit impact
- No obligation
Please note that debt solutions may not be suitable for everyone and fees may apply Click Here. Entering into an IVA will impact your credit rating.
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- What is DRO
What is a Debt Relief Order ?
A Debt Relief Order is a formal, legally binding debt solution available in England, Wales, and Northern Ireland, designed for people dealing with significant debt but who have little income or few assets.
Once your DRO is approved, you get a 12-month period of protection: your creditors can’t take legal action to recover the debts included in it, giving you breathing space to stabilise your finances. If your circumstances remain broadly the same at the end of those 12 months, the debts included in your DRO are typically written off.
At a glance
- A formal debt solution for people with overwhelming debt but limited income and assets
- Eligibility criteria are strict, covering your total debt level, assets, and disposable income
- Once qualifying debts are included, creditors can't pursue you for them during the arrangement
- Applying means working with an approved DRO adviser, who submits your case to the Insolvency Service.
- A DRO is listed on your credit file for six years.
- If your circumstances haven't improved after 12 months, included debts are typically written off.
- How It Works
How does a DRO work?
Restrictions while your DRO is active
Secured debts still need paying
A DRO only covers unsecured debt, so mortgage or car finance payments must continue as normal
Certain roles are restricted
You can't act as a company director, or work in certain regulated industries, without disclosing your DRO, and you'd need court permission to set up a limited company
Honesty matters throughout
If you don't cooperate with these restrictions, or information given at application turns out to be inaccurate, creditors can ask for a Debt Relief Restriction Order (DRRO), extending restrictions for up to 15 years
- Eligibility
Who is eligible for a Debt relief order?
To be considered for a DRO, you’ll generally need to meet all of the following:
Because the criteria are strict and specific to your situation, it’s worth having a proper assessment with a debt adviser or Insolvency Practitioner before assuming either way whether you qualify.
- What's Covered
What debts are included and excluded in a DRO?
Debts that can be included are known as “qualifying debts.” Once added to your DRO, creditors can no longer pursue you for them during the arrangement.
- Usually Qualifying
- Credit cards
- Payday loans
- Overdrafts
- Council tax arrears
- Income tax arrears
- Unpaid National Insurance contributions
- Usually Excluded
- Secured loan arrears
- Mortgage arrears
- Rent arrears
- Criminal fines
- Student loans
- Child maintenance arrears
Excluded debts remain your responsibility to pay, even while a DRO is in place for your other debts.
- Pros & Cons
Advantages and disadvantages of a DRO
- Pros
- Legal protection from creditor action and enforcement during the arrangement
- Legal protection from creditor action and enforcement during the arrangement
- No application fee and no ongoing monthly payments required
- Designed specifically for people with limited assets and low disposable income
- A relatively straightforward process via an approved DRO adviser and the Insolvency Service
- Cons
- Your credit rating will be affected for six years
- Your details are placed on the public Register of Insolvencies
- Creditors can, in some cases, challenge the DRO, which may delay things
- Certain debts like student loans and court fines can't be included
- Strict asset and income limits mean not everyone will meet the eligibility criteria
- If your circumstances improve and you become able to repay, or you don't cooperate with the terms, your DRO can be revoked
- Cost & Fees
Know what cost & fees involved?
There’s no fee to apply for a DRO in England, Wales, or Northern Ireland. A £90 application fee used to apply, but this was removed under rule changes introduced in April 2024. There are no ongoing monthly payments required during a DRO. If your circumstances change and you’re able to make payments, your adviser will let you know how this could affect your arrangement.
- Credit Impact
How does a DRO affect your credit score?
A DRO has a significant effect on your credit file. It’s recorded there for six years from when it’s approved, during which your credit rating will be affected and new credit or financial products are likely to be harder to access and where available, may come with higher interest rates to offset the perceived risk.
Once the six-year record clears (assuming you’ve completed the DRO successfully), your credit rating can begin to recover, and rebuilding it from there is a gradual process.
- Alternatives
Is there a better option for you?
Individual Voluntary Arrangement (IVA)
For those with a regular income who want affordable, fixed repayments and to protect assets like their home
Debt Relief Order (DRO)
For those with low disposable income and minimal assets who meet strict eligibility criteria
Debt Consolidation Loan
For those who'd rather combine multiple unsecured debts into one new loan
Bankruptcy
Usually a last resort, for those who genuinely cannot repay their debts
*to understand what you could qualify for, including any fees or downsides, so you can decide what’s genuinely right for your situation.
- Check Eligibility
Is a DRO available in Scotland?
Answer a few quick questions and one of our advisers will get back to you with your options no cost to check, and no obligation to go ahead.
- Confidential, and never shared without your permission
- No obligation to proceed
- Takes less than 2 minutes
Check if you qualify
- 60 seconds
- No credit impact
- No obligation
Please note that debt solutions may not be suitable for everyone and fees may apply Click Here. Entering into an IVA will impact your credit rating.
- Good to know
Frequently asked questions
A DRO is a formal, legally binding UK debt solution for people with overwhelming debt but very limited income and assets. It gives 12 months of protection from creditors, after which qualifying debts are typically written off if your circumstances haven’t changed.
You’ll generally need under £50,000 in unsecured debt, assets worth £2,000 or less (plus a car valued at £4,000 or less), disposable income under roughly £75 a month, and no DRO in the last six years. A full assessment is needed to confirm this.
No, the £90 application fee that used to apply was removed in April 2024. There’s no cost to apply for a DRO.
Yes. It’s recorded on your credit file for six years, during which new credit is likely to be harder to access.
If your financial circumstances haven’t significantly improved, the debts included in your DRO are typically written off, and you’re discharged from the arrangement.
Yes, if your circumstances change and you become able to repay your debts, or you don’t cooperate with the DRO’s terms, it can be revoked, and in some cases a Debt Relief Restriction Order (DRRO) can extend restrictions for up to 15 years.
No. DROs apply to England, Wales, and Northern Ireland only. If you live in Scotland, a Minimal Asset Process (MAP) Bankruptcy or Trust Deed may be the more relevant options, speak to an adviser to find out what applies to you.