A Debt Relief Order (DRO) is a formal debt solution for people with limited assets, little spare income and debts they cannot afford to repay. Eligibility is subject to defined criteria and the individual circumstances of the person applying.
A DRO is designed for a specific financial situation. Eligibility must be assessed and an application is made through an approved debt adviser.
The DRO moratorium normally lasts for one year.
There is currently no fee to apply for a DRO.
A DRO application cannot be submitted directly by the individual.
Different procedures apply in Scotland and Northern Ireland.
A Debt Relief Order, usually called a DRO, is a formal insolvency solution available in England and Wales for people who cannot afford to repay their debts and meet defined eligibility requirements.
A DRO is an administrative insolvency procedure rather than a court procedure. It normally creates a 12-month period during which qualifying debts included in the DRO are protected from creditor recovery action. If the DRO remains in force, the individual is normally discharged from those debts at the end of that period.
A DRO is intended to provide a formal route for dealing with qualifying debt where the individual has limited assets and little spare income and meets the statutory eligibility rules.
A DRO is not an informal payment arrangement with individual creditors. Once approved, it is a formal insolvency procedure with defined rules and restrictions.
During the DRO period, creditors whose qualifying debts are listed in the order generally cannot pursue recovery of those debts, including through proceedings or enforcement, without the relevant legal permission or exception.
The DRO period normally lasts 12 months. During that period, the individual must comply with the applicable DRO rules and report relevant changes in circumstances.
If the DRO remains in force until the end of the period, the individual is normally discharged from the qualifying debts included in the order. Certain debts are excluded and remain payable.
At its simplest, a DRO moves through three broad stages. The precise position depends on the debts included, continued eligibility and whether the individual complies with the DRO requirements.
The Insolvency Service approves the order after an application is submitted through an approved debt adviser.
The 12-month period begins and qualifying listed debts receive the protection provided by the DRO.
If the DRO remains in force, qualifying debts covered by the order are normally written off at the end of the DRO period.
Only qualifying debts covered by the DRO receive the relevant protection and discharge. Certain liabilities, including some court fines, student loans and maintenance obligations, are not written off through a DRO. We will look at included and excluded debts separately later on this page.
A DRO is only available where the eligibility conditions are met. Income, assets, total qualifying debt, vehicle value, previous insolvency history and other circumstances can all be relevant. An application must be made through an approved debt adviser.
A DRO can be a significant form of debt relief, but it is designed for a defined financial situation. The next section explains the current debt, income, asset, vehicle and residency criteria.
Debt Relief Orders are designed for a defined financial situation. Eligibility depends on your debts, disposable income, assets, vehicle, connection to England or Wales and insolvency history.
These figures are eligibility thresholds, not a recommendation that a DRO is the right solution for you. An approved debt adviser must assess your circumstances.
The current monetary criteria provide a useful starting point for understanding whether a DRO may be available. The full assessment goes further than these four figures.
Your total liabilities counted for DRO eligibility must fall within the applicable debt limit. Establishing the correct debt figure is part of the application assessment.
Disposable income is assessed after normal household expenses. It is not simply the amount left in your bank account on a particular day.
The DRO asset rules look at the value of property you own, subject to the relevant statutory exclusions and disregards. An approved adviser will establish what needs to be counted.
The value of a domestic vehicle is considered separately under the DRO rules. The assessment is based on its current value rather than what you originally paid for it.
A DRO is intended for someone who is unable to pay their debts, not simply someone who would prefer not to make the contractual repayments.
You must meet the territorial requirement, which generally includes having lived or worked in England or Wales within the previous three years.
You cannot obtain another DRO if you have already been subject to one within the relevant six-year period.
Current bankruptcy, an IVA, interim order or certain other insolvency circumstances can prevent a DRO from being available. The precise position should be checked before applying.
A DRO is generally not available to a homeowner. GOV.UK describes the scheme as being for people who do not own their home, and ownership of an interest in property can affect the DRO asset criteria. If there is any uncertainty about property ownership, beneficial interests or another person's interest in a property, this should be raised with the approved debt adviser rather than assumed from the headline £2,000 asset figure alone.
An approved debt adviser will look beyond the headline thresholds before submitting an application. The Insolvency Service guidance identifies several other matters that can affect whether a DRO is available.
The debts and balances need to be established so that the relevant total can be assessed correctly.
Disposable income is assessed using your financial circumstances rather than a single bank balance.
The adviser will establish which assets need to be valued and which items are treated differently under the DRO rules.
Payments made to creditors can be reviewed, including whether one creditor may have been preferred over another.
Valuable property given away or sold for less than its value can also be relevant to the DRO assessment.
DRO suitability and the application itself must be dealt with through an approved debt adviser. Stop Your Debt UK can provide information, practical support and case coordination, and help connect you with an appropriately authorised provider where regulated debt advice is required.
Many common unsecured household debts can be included in a DRO. However, not every liability qualifies, and some debts remain payable even after a DRO has been made.
Debts that can be covered by a DRO are known as qualifying debts. They can include credit cards, personal loans, overdrafts, rent and utility arrears, council tax, income tax, benefit overpayments, Buy Now Pay Later agreements and money owed to friends or family.
These are common examples rather than a substitute for checking every liability. The nature and legal status of each debt still matters.
Outstanding credit-card balances are a common example of qualifying unsecured debt.
Unsecured personal loans and overdraft balances can generally form part of a DRO.
Existing rent arrears can be a qualifying debt, although ongoing rent still needs to be dealt with.
Arrears for services such as gas, electricity and telephone bills can qualify.
Council tax that has become due and remains unpaid can be included subject to the position on the particular account.
Certain determined income-tax liabilities owed to HMRC can be qualifying debts.
Benefit overpayments can be qualifying debts and should be identified during the assessment.
Buy Now Pay Later agreements and money genuinely owed to friends or family can also qualify.
In broad terms, a qualifying debt is a debt for a liquidated sum that is payable now or at a certain future time and is neither an excluded debt nor secured to the extent of the security. This is why identifying the legal nature of each liability matters rather than simply listing every amount owed.
Some liabilities are excluded from the DRO regime. These do not receive the same discharge as qualifying debts, so provision may still need to be made for them.
Student-loan liabilities are excluded and remain subject to their normal repayment rules.
Fines imposed for criminal offences are excluded from a DRO and remain payable.
Child-support maintenance and certain obligations arising from family proceedings are excluded.
Relevant budgeting and crisis loans from the Social Fund are excluded debts.
Certain liabilities for damages relating to death or personal injury are excluded from the DRO discharge.
Liabilities arising under qualifying criminal confiscation orders are also excluded.
A debt is not a qualifying DRO debt to the extent that it is secured. A secured creditor's underlying rights over the secured property are not removed by a DRO. Where the debt exceeds the value of the security, an unsecured shortfall may need to be considered separately under the DRO rules.
A County Court Judgment obtained by an ordinary creditor can still relate to a qualifying debt. A civil judgment should not be confused with a criminal court fine, which is treated differently.
Not every penalty is legally a “fine” for DRO purposes. Certain local-authority penalty charges can qualify, whereas a fine imposed by a criminal court is excluded.
No. For example, income tax must be sufficiently determined and payable for it to be treated as a qualifying DRO liability. The position should be established from the actual account.
If a qualifying debt is jointly owed, the DRO can affect the liability of the person subject to the order, but it does not clear the other person's liability. A creditor may still pursue another joint debtor or guarantor for money they remain legally liable to pay.
Leaving out a debt, misunderstanding whether it is secured or assuming an excluded liability will disappear can materially affect the position. An approved debt adviser will establish the debts that need to appear on the application and how they should be treated.
Once a Debt Relief Order is approved, the DRO period normally lasts for 12 months. During this time, important protections apply to the qualifying debts listed in the order — but there are also rules and responsibilities to follow.
During the DRO period you normally stop making payments towards the listed debts and interest. Creditors listed in the DRO are subject to restrictions on recovering or enforcing those debts.
The Insolvency Service confirms the DRO and informs the creditors listed in the application.
Listed creditors generally cannot pursue payment or enforcement of the qualifying DRO debts during the moratorium.
Relevant changes to income, finances or valuable property received during the period must be reported.
If the DRO remains in force, qualifying debts covered by it are normally written off when the DRO period ends.
You normally stop making payments towards the qualifying debts listed in the DRO.
Listed creditors should stop asking you to make payment towards debts protected by the DRO.
Creditors cannot normally commence or continue recovery proceedings for a protected DRO debt without the relevant court permission.
Bailiff enforcement relating to debts protected by the DRO must generally stop, subject to specific legal exceptions.
Court-ordered deductions from wages for debts protected by the DRO must generally stop.
Your normal ongoing rent remains a household commitment and still needs to be paid.
New gas, electricity, water, communications and other ongoing living costs continue.
A DRO does not provide a blanket write-off for new debts incurred after the order is made.
Debts that are not covered by the DRO, such as applicable student loans and criminal court fines, remain payable.
A DRO does not remove a secured creditor's underlying rights over property subject to its security.
The Insolvency Service sends notice of the DRO to the creditors listed in the application. Once notified, those creditors should stop demanding payment of the protected debt.
If a listed creditor continues to demand payment, you can provide them with a copy of the DRO and point them to the Individual Insolvency Register. If demands continue, the creditor's formal complaints process may be relevant.
A creditor may still send certain statements or general correspondence. Receiving a statement does not necessarily mean the creditor is permitted to demand payment.
A DRO is based on your circumstances. During the DRO period, relevant changes must be reported to the Insolvency Service. A change does not automatically mean the DRO will end, but it can require the position to be reassessed.
A significant increase in regular earnings or other income should be reported so its effect on eligibility can be assessed.
Receiving a significant amount of money, such as an inheritance, may affect continued eligibility.
Property, vehicles or other possessions of value received during the DRO period may need to be reported.
Changes affecting the amount of disposable income or whether the DRO eligibility criteria continue to be met can be relevant.
The Insolvency Service can revoke a DRO if circumstances change so that the eligibility requirements are no longer met, or if it later establishes that the person was not eligible. If a DRO is revoked, the protection ends and creditors may again pursue the debts. Interest that accrued during the DRO can also become payable.
If the DRO remains in force through the normal DRO period, you are generally discharged from the qualifying debts listed in the order. Those creditors can no longer legally recover the discharged debts from you.
This does not discharge liabilities that were excluded from the DRO, and it does not remove another person's liability for a joint debt or guarantee.
During the DRO period there are rules affecting borrowing, business activity and company directorships. Understanding these restrictions before applying is an important part of deciding whether a DRO may be appropriate.
A DRO provides significant protection from qualifying debts, but it also places legal restrictions on certain financial and business activities during the DRO period.
While your DRO is in force, you must follow restrictions concerning credit, bank accounts, company directorships and business activity. Breaching a DRO restriction can be a criminal offence, and serious misconduct can result in restrictions continuing beyond the normal DRO period.
These rules are one reason a DRO should be understood as a formal insolvency procedure rather than simply a debt write-off.
If you obtain credit of £500 or more, whether on your own or jointly with somebody else, you must tell the person providing the credit that you are subject to a DRO.
While subject to the restriction, you cannot act as a company director without the court's permission. The restriction also applies to taking part directly or indirectly in the promotion, formation or management of a company without the required permission.
If you carry on business under a different name from the name in which the DRO was made, you must disclose the name under which the DRO was made to the people with whom you enter into business transactions.
If you apply for a new bank or building-society account, including an overdraft facility, you must tell the provider about your DRO. You must also not write cheques where there are insufficient funds.
The restriction is not an absolute prohibition on all borrowing. The specific insolvency restriction is that if you obtain credit of £500 or more, you must tell the lender that you are subject to a DRO.
That does not mean a lender has to offer credit. A DRO is a formal insolvency event and will usually make obtaining credit more difficult or more expensive.
A DRO does not itself mean that every existing bank account is automatically closed. However, your bank's own terms, any money you owe that bank and the facilities attached to the account can affect what happens in practice.
If you apply for a new bank or building-society account while the DRO is in force, you must disclose the DRO to the provider.
A Debt Relief Restrictions Order, or DRRO, can be made where the Official Receiver considers that conduct connected with the DRO warrants further restrictions. A person may instead agree to a Debt Relief Restrictions Undertaking (DRRU). These measures can keep insolvency restrictions in place well beyond the normal DRO period.
Giving away assets or selling them for less than their value can be relevant when conduct is investigated.
Paying particular creditors in preference to others can be one of the matters considered by the Official Receiver.
Borrowing money knowing it cannot be repaid, providing false information or other dishonest behaviour can also be relevant.
A DRRO or DRRU extends the applicable restrictions; it does not ordinarily extend the original 12-month DRO moratorium or prevent the qualifying DRO debts from being discharged at the end of that original period. Restrictions and debt discharge are separate issues.
Even after the normal DRO period ends, the insolvency does not immediately disappear from every record. The next section looks at credit files, the Individual Insolvency Register and what happens after the DRO ends.
A DRO normally ends automatically after its 12-month period. If it has remained in force, the qualifying debts specified in the order are discharged — but the DRO does not immediately disappear from every financial or public record.
At the end of the normal DRO period, the order ends automatically. Provided it has not been revoked, you are generally discharged from the qualifying debts specified in the DRO, meaning those creditors can no longer legally recover those discharged debts from you.
The normal DRO period comes to an end automatically without a separate application being needed.
The qualifying debts specified in the DRO are discharged, subject to the legal exceptions.
DRO details normally remain on the Individual Insolvency Register for three months after the DRO ends.
The DRO normally remains on the credit reference file for six years from the date it was approved.
If the DRO remains in force until the end of the DRO period, the qualifying debts specified in the order are discharged.
This includes the relevant interest, penalties and charges associated with those specified debts. The creditor can no longer legally recover the discharged debt from you.
Discharge applies to the person named in the DRO. It does not remove the separate liability of another joint borrower or guarantor.
The end of the 12-month DRO period and the removal of the DRO from public or credit records happen at different times.
The DRO will usually remain on your credit reference file for six years from approval. The debts listed in the DRO can also remain visible during this period and will not necessarily appear as simply “paid” or “settled”.
Your DRO details normally remain on the Individual Insolvency Register for three months after the DRO ends before being removed from the active register.
The Insolvency Service does not correct information held by credit reference agencies. If information remains inaccurate, the relevant credit reference agency should be contacted directly.
Review the information held about you and check that the DRO and related accounts are being reported accurately.
Retain the paperwork connected with the DRO in case evidence is later required when dealing with a creditor or credit reference agency.
If an entry remains incorrect, contact the relevant credit reference agency and, where appropriate, the organisation that supplied the information.
Insolvency Service guidance recommends checking that the relevant entries have been removed once the six-year period has passed.
A creditor cannot legally recover a qualifying debt that has been discharged through the DRO.
Keep your DRO paperwork. If you are asked to provide evidence that the DRO ended, the Insolvency Service DRO team can provide confirmation.
It is also worth checking exactly which debt is being requested. A debt that was omitted from the DRO, an excluded debt or a liability that was not discharged may have a different legal position.
No. Discharge applies to qualifying debts specified in the DRO, subject to the statutory exceptions. Some liabilities can therefore remain payable.
A debt cannot simply be added after the DRO has been approved. Debts omitted from the order can remain recoverable.
Liabilities excluded from the DRO regime remain subject to their own repayment and enforcement rules.
A qualifying debt incurred through fraud or fraudulent breach of trust can receive protection during the DRO period but is not discharged when that period ends.
Do not dispose of the documents simply because the DRO period has finished. Insolvency Service guidance recommends keeping the paperwork because it may later be useful when applying for credit, correcting a credit-reference file or showing that the DRO has ended.
Yes, but there is no instant credit-file reset when the DRO ends. The DRO remains part of your credit history for the relevant reporting period, so rebuilding is normally a gradual process.
Make sure your personal details, DRO information and related accounts are being reported accurately.
Continue paying ongoing household commitments and any new borrowing on time where affordable.
Avoid treating the end of the DRO as a reason to take on significant new borrowing simply to rebuild a credit score.
You cannot obtain another Debt Relief Order until six years have passed from the date your previous DRO was approved. This is separate from the six-year period for which the DRO normally appears on your credit reference file.
Income, assets, home ownership, vehicles and the type and amount of debt all affect whether a DRO is available. It is also important to understand how a DRO compares with alternatives such as an IVA or bankruptcy.
If you are considering a Debt Relief Order, you may already have letters from creditors, debt collectors, solicitors, local authorities or the courts. Upload your correspondence to LetterChekr™ for a structured, plain-English explanation of what the document appears to be and the important information it contains.
Choose a PDF, JPG or PNG copy of the creditor, debt collection, solicitor, court or other debt-related correspondence you have received.
The tool looks for key information including the sender, amount, reference, dates or deadlines and the type of correspondence you appear to have received.
See what the document appears to mean, the important points identified from it and general information about possible next steps.
LetterChekr™ provides an automated explanation of uploaded correspondence. It can help you understand a debt letter in plain English, but it does not determine whether a Debt Relief Order is suitable or whether you qualify for one, and it is not a substitute for regulated legal or financial advice.
Complete your details below and one of our consultants can discuss the correspondence with you, help organise the surrounding information and identify where specialist or regulated support may be required.
A Debt Relief Order does not mean you have to give up work or automatically lose everyday possessions. However, your income, assets, vehicle and any interest you have in property are important when deciding whether you meet the DRO eligibility criteria.
You can be employed and still qualify for a Debt Relief Order. What matters is your overall financial position, including household income, reasonable living costs and the amount of disposable income remaining each month.
Your approved debt adviser will assess your income and expenditure when considering whether you meet the DRO criteria. Changes in income during the DRO may also need to be reported.
A domestic motor vehicle worth less than the current DRO vehicle limit can generally be disregarded when assessing your assets. The vehicle should be valued at its realistic current market value, taking account of factors such as condition and mileage.
Hire purchase, PCP, logbook loans and other vehicle finance arrangements require separate consideration, including ownership, vehicle value and whether ongoing payments are an allowable expense.
If you own a property, your interest in it is relevant to the DRO asset rules. In many cases, owning a home means a person will not meet the asset criteria for a Debt Relief Order.
The assessment is not limited to whose name appears on the title. If there may be a beneficial interest in a property, the approved debt adviser must consider the circumstances before a DRO application is submitted.
Your income is considered alongside reasonable household and living expenses to establish the amount of disposable income available.
Savings, valuable possessions, property interests and other assets may need to be considered against the DRO asset rules.
The value, ownership and finance arrangements for a vehicle can affect how it is treated when eligibility is assessed.
If your financial circumstances materially change after a DRO is approved, you have duties to provide relevant information to the Official Receiver.
DRO eligibility and suitability must be assessed through an approved debt adviser. Stop Your Debt UK can help you understand the process, organise relevant information and connect you with an appropriately authorised provider where regulated debt advice is required.
A Debt Relief Order, Individual Voluntary Arrangement and bankruptcy can all deal with serious personal debt, but they have different eligibility rules, costs, payment structures and consequences.
A DRO is designed for people who meet strict limits on debt, assets and spare income. An IVA is a formal arrangement to repay all or part of what is owed through an insolvency practitioner. Bankruptcy is a separate insolvency process that can deal with debts where a DRO may not be available, but assets and surplus income can be affected.
A DRO has no application fee and must be applied for through an approved debt adviser. Strict eligibility conditions apply, including limits relating to total qualifying debt, assets, disposable income and vehicle value. If the DRO remains in force, qualifying debts listed in it are normally discharged at the end of the DRO period.
An IVA allows an individual to agree a formal proposal to repay all or part of their debts. The insolvency practitioner assesses affordability and administers the arrangement. Creditor approval is required before the IVA can take effect, and fees are normally charged through the arrangement.
Bankruptcy can deal with debts where other solutions may not be available or suitable. Assets may become part of the bankruptcy estate and surplus income can result in an Income Payments Agreement or Order. Discharge from bankruptcy normally occurs after 12 months, although some obligations or restrictions can continue.
This is a general comparison rather than an assessment of which solution is suitable for an individual case.
Although DROs and bankruptcy are both formal insolvency procedures, a DRO is only available where the statutory eligibility requirements are met. The current DRO criteria include limits relating to debt, assets, disposable income and vehicle value.
An IVA operates differently again. It is a formal arrangement under which an insolvency practitioner develops and administers a proposal to creditors. Whether any of these routes is appropriate depends on the person's complete financial circumstances, not simply the amount of debt owed.
A meaningful comparison requires more than looking at how quickly debt might be written off.
What comes into the household, what reasonable expenditure is required and whether there is sustainable surplus income.
Savings, vehicles, property, valuable possessions and other financial interests can affect the available routes.
Not every liability is treated identically. Secured, excluded, joint and other specialist debts require careful consideration.
Expected changes to earnings, housing, employment, assets or family circumstances may affect how sustainable a particular route would be.
This comparison provides general information only. Stop Your Debt UK does not determine which regulated debt solution you should enter. Where regulated debt advice, a DRO application, an IVA or formal insolvency work is required, the relevant assessment or work must be undertaken by an appropriately authorised or licensed professional.
A DRO cannot be submitted directly by an individual. The next section explains the application route, what information is normally required and what happens before the Insolvency Service makes its decision.
You cannot submit a Debt Relief Order application yourself. The process starts with an approved debt adviser, who assesses your circumstances and, if a DRO is appropriate and you are eligible, completes and submits the application.
An approved debt adviser will review your financial position and check the DRO eligibility requirements. If a DRO is suitable, an approved intermediary completes the online application and submits it to the Insolvency Service. The Insolvency Service then reviews the application and decides whether the DRO should be made.
The exact information required depends on the applicant's circumstances, but the DRO process broadly follows these stages.
The adviser goes through your circumstances confidentially, including your debts, income, household expenditure, assets and other relevant financial information.
The adviser checks whether you meet the DRO criteria and looks at your total debts, disposable income, assets, vehicle and relevant insolvency history. They will also consider whether a DRO is appropriate for your circumstances.
Accurate information is needed about creditors, balances, household income and expenditure, assets, pensions, employment, previous insolvency procedures and certain transactions made before the application.
If the DRO route is suitable and the eligibility criteria are met, the approved intermediary completes the online application and submits it to the Insolvency Service.
The DRO team reviews the submitted application and carries out verification checks. Further information may be requested before a decision is made.
If approved, the Insolvency Service confirms that the DRO has been made, explains the restrictions and any actions required, and notifies the creditors listed in the DRO. The DRO period then begins.
Creditor names, balances, account or reference numbers and the debts you owe.
Employment, benefits, pensions and details of household income and living expenditure.
Cash, savings, vehicles, property interests and other assets or valuable possessions.
Contact details, addresses, National Insurance number and relevant employment details.
Details of previous or current formal debt solutions and any relevant reference numbers.
Information about certain creditor payments, assets sold or possessions given away during the previous two years.
The previous DRO application fee was abolished in April 2024. GOV.UK also states that checking DRO eligibility with an approved debt adviser is free of charge.
Stop Your Debt UK can provide general information, practical support, document organisation and case coordination. We do not determine whether a DRO is suitable or submit DRO applications ourselves. Where regulated debt advice or a DRO application is required, the relevant assessment and application must be undertaken through an appropriately approved or authorised provider.
You do not need to understand every debt solution before asking for help. If you are dealing with unmanageable debt, creditor letters or uncertainty about what happens next, the first step is to understand your position clearly.
We can help you organise the information, understand the process and identify where appropriately authorised professional support may be required.
We help gather the information, documents and correspondence needed to understand what is happening.
Your circumstances are reviewed through our central support and case-coordination process.
Where regulated debt advice, legal advice, insolvency work or another specialist service is required, we help connect your case with an appropriately authorised professional.
Stop Your Debt UK remains available to help with permitted administration, documents and case coordination throughout your journey.
Stop Your Debt UK is not an FCA-authorised debt advice firm or an SRA-regulated law firm. Where regulated debt advice, legal advice, formal insolvency services or another regulated or reserved activity is required, the relevant work is undertaken by an appropriately authorised third-party professional. Information on this website is general information and should not be treated as personalised legal or financial advice.