Debt Relief Order (DRO)
A Debt Relief Order (DRO) is a legal process that can help you if you’re struggling to repay your debts. It’s an alternative to bankruptcy and can help you to get a fresh start.
Do I Qualify
For an IVA?

Debt Relief Order (DRO)
A Debt Relief Order (DRO) is a legal process that can help you if you’re struggling to repay your debts. It’s an alternative to bankruptcy and can help you to get a fresh start.
Do I Qualify
For an IVA?

How does a debt relief order (DRO) work?
A DRO is a legally binding agreement that allows you to effectively write off your debts to be paused for a 12 month period.
It’s available to anyone who has debts below £30,000 and owns fewer than £2,000 worth of assets.
During the 12-month period following your DRO application your creditors can’t take action against you to recover the money you owe. This gives you time and space to get your finances back on track and start rebuilding your credit history.
If your circumstances remain the same for the next 12 months, then any debt entered into the debt relief order application will be written off.
One of our friendly debt specialists will go through a financial assessment with you, gathering all the information such as normal household expenses that are required to determine your eligibility for a debt relief order.
Your assessment will take into account your debts, assets and income, as well as any other relevant factors that may affect your ability to repay your debts.
After the financial assessment, it is deemed you are eligible, you can then complete and submit your application for a debt relief order.
Your application is then sent to the insolvency service where an official receiver will review your case and determine whether to approve your application for a debt relief order.
The cost of applying for a debt relief order is £90. This can be paid in one transaction or made in instalments.
It is important to note that you do not receive your application fee back if the DRO does not get approved by the official receiver, so ensure you are eligible before proceeding to make payment.
If your application is approved, your debts will be paused for one year. If your circumstances do not change during that period, your debts will be written off.
If your circumstances improve, however, you may no longer be eligible for a DRO and the solution will be cancelled.
If this is the case, no debt is written off and your creditors will once again be able to start taking action to recover the money you owe.
What is a Debt Relief Order (DRO)?
A Debt Relief Order (DRO) is a formal debt solution designed for people with low income, few assets, and debts under £30,000. It offers a way to deal with unmanageable debt when you have little or no disposable income to make repayments.
When you enter a DRO:
- Your qualifying debts are put on hold for 12 months.
- Creditors can’t chase you or take legal action during this time.
- If your situation hasn’t improved after the 12 months, the debts included in the order are written off completely.
Because DROs are only available to people who meet strict criteria, they’re often seen as a low-cost alternative to bankruptcy. The application is made through an approved debt advisor and involves a one-off fee of £90 paid to the Insolvency Service.
How does a debt relief order (DRO) work?
A DRO is a legally binding agreement that allows you to effectively write off your debts to be paused for a 12 month period.
It’s available to anyone who has debts below £30,000 and owns fewer than £2,000 worth of assets.
During the 12-month period following your DRO application your creditors can’t take action against you to recover the money you owe. This gives you time and space to get your finances back on track and start rebuilding your credit history.
If your circumstances remain the same for the next 12 months, then any debt entered into the debt relief order application will be written off.
One of our friendly debt specialists will go through a financial assessment with you, gathering all the information such as normal household expenses that are required to determine your eligibility for a debt relief order.
Your assessment will take into account your debts, assets and income, as well as any other relevant factors that may affect your ability to repay your debts.
After the financial assessment, it is deemed you are eligible, you can then complete and submit your application for a debt relief order.
Your application is then sent to the insolvency service where an official receiver will review your case and determine whether to approve your application for a debt relief order.
The cost of applying for a debt relief order is £90. This can be paid in one transaction or made in instalments.
It is important to note that you do not receive your application fee back if the DRO does not get approved by the official receiver, so ensure you are eligible before proceeding to make payment.
If your application is approved, your debts will be paused for one year. If your circumstances do not change during that period, your debts will be written off.
If your circumstances improve, however, you may no longer be eligible for a DRO and the solution will be cancelled.
If this is the case, no debt is written off and your creditors will once again be able to start taking action to recover the money you owe.
Which debts can be written off with a DRO?
It’s important to understand whether your debts can be included in a Debt Relief Order. Typically, only unsecured debts can be written off with a Debt Relief Order.
Debts that can written off in a DRO:
- Utility bills such as gas, electricity and water bills
- Credit cards & loans
- Benefit overpayments
- Hire purchase (HP) agreements
- Items bought on finance, such as buy-now-pay-later agreements
Debt that can't be written off in a DRO:
- CSA maintenance arrears
- Student Loans
- TV licence arrears
- Social fund loans
If you are unsure if a debt can be included in your DRO, our advisors will be more than happy to help.
Which debts can be written off with a DRO?
It’s important to understand whether your debts can be included in a Debt Relief Order. Typically, only unsecured debts can be written off with a Debt Relief Order.
Debts that can written off in a DRO:
- Utility bills such as gas, electricity and water bills
- Credit cards & loans
- Benefit overpayments
- Hire purchase (HP) agreements
- Items bought on finance, such as buy-now-pay-later agreements
Debt that can't be written off in a DRO:
- CSA maintenance arrears
- Student Loans
- TV licence arrears
- Social fund loans
If you are unsure if a debt can be included in your DRO, our advisors will be more than happy to help.
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DRO Alternatives Explained
A Debt Relief Order (DRO) is a useful option if you have low income, minimal assets, and debts under £30,000. But it won’t suit everyone. Other solutions include:
- Debt Management Plan (DMP): An informal arrangement that reduces your monthly repayments. Interest may be frozen, but creditors aren’t legally bound to agree.
- Individual Voluntary Arrangement (IVA): A formal debt solution for people with higher levels of debt. It usually lasts five years, with unaffordable debt written off at the end.
- Bankruptcy: A more serious option that clears most debts, but may involve surrendering assets and has a significant effect on your credit record.
How do debt relief orders affect you?
A debt relief order offers a powerful legal solution for dealing with unmanageable debts. However, the debt solution does have some restrictions that require consideration before you apply.
How do debt relief orders affect you?
A debt relief order offers a powerful legal solution for dealing with unmanageable debts. However, the debt solution does have some restrictions that require consideration before you apply.
Positives and negatives of a debt relief order (DRO)
DRO Advantages
- Low cost alternative to bankruptcy
- Low cost alternative to bankruptcy
- Low cost alternative to bankruptcy
DRO Disadvantages
- Strict eligibility criteria, only available to those with few assets and a low income
- If your situation improves, the DRO is cancelled and you continue to owe the money in full
- It negatively impacts your credit file
- You are placed on the individual insolvency register and publicly listed as bankrupt
Get Free Debt Advice
Positives and negatives of a debt relief order (DRO)
Like any debt solution, a DRO has both benefits and drawbacks. Understanding these will help you decide whether it’s the right option for your circumstances.
DRO Advantages
- Low cost alternative to bankruptcy
- Debts written off after 12 months
- Legal protection from creditors
- Retains essential possessions
DRO Disadvantages
- Strict eligibility criteria, only available to those with few assets and a low income
- If your situation improves, the DRO is cancelled and you continue to owe the money in full
- It negatively impacts your credit file
- You are placed on the individual insolvency register and publicly listed as bankrupt
Get Free Debt Advice
Is a debt relief order a good idea?
If you are struggling with unmanageable debts and have no assets to be realised, then a debt relief order may be a good option for you.
It is a low-cost solution that can help provide some temporary relief from creditor pressure while giving you time to get your finances back on track.
Debt relief orders however can be cancelled if your circumstances improve during the 12-month period, which could see you back to where you started.
Speaking to a debt specialist will help you understand all of the debt solutions available to you and the advantages and disadvantages of each.
How much does a DRO cost?
Applying for a Debt Relief Order involves a one-off fee of £90, which is paid to the Insolvency Service. This fee covers the cost of setting up and administering the DRO and must be paid in full before your application can be approved.
Compared to bankruptcy, which can cost several hundred pounds, a DRO is a much cheaper debt solution. Some debt charities and organisations may also be able to help you spread the cost of the £90 fee if needed.
Is a debt relief order right for me?
If you have a debt problem and are unsure whether a debt relief order is the right solution for you, it is best to speak to one of our debt specialists.
This will ensure you are fully informed of all the debt help that is available to you, and the advantages and disadvantages of each option.
Solutions such as an Individual Voluntary Arrangement (IVA) or a Debt Management Plan (DMP) could be better suited to your personal circumstances.
Whatever option you choose, the most important thing is that you take action to tackle your debt problem as soon as possible. With the right support and advice, there is hope for a brighter financial future ahead.
How long does a DRO last?
A Debt Relief Order normally lasts for 12 months. During this time, your creditors can’t chase you for payment or take legal action against you. This breathing space is designed to give you time to stabilise your finances without pressure from lenders.
If your circumstances remain the same after the 12 months, any debts included in your DRO are written off completely. That means you won’t need to make further payments towards them. However, if your financial situation improves during the year, like your income increases or you gain assets, your DRO could be cancelled and you may have to resume repayments.
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Take the first steps to becoming Debt Free!
- One lower monthly payment
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100% FREE ADVICE
Get information today on your available options
Take the first steps to becoming Debt Free!
- One lower monthly payment
- Write off 75%* of unaffordable debt
- Freeze interest & charges
- Stop legal action including bailiffs
- Receive FREE well-being sessions
Debt Relief Order FAQs
Yes, but only if your previous DRO was approved more than six years ago and you meet the eligibility criteria again. You can’t have more than one DRO active at the same time.
In most cases, a DRO shouldn’t affect your employment. The main exceptions are if you work in certain financial roles or positions of trust, where insolvency may be a restriction. It’s always best to check your employment contract if you’re unsure.
You can usually keep a basic bank account during a DRO. However, you may not be able to hold an overdraft or access credit facilities while the DRO is in place.
A DRO will stay on your credit file for six years from the date it was approved. During this time, it will affect your ability to get credit. After six years, it should drop off your file, but you may still need to rebuild your credit gradually.
Yes, joint debts can be included in your DRO application. However, the other person named on the debt will still be legally responsible for repaying their share.