Debt Relief Order (DRO)

A Debt Relief Order (DRO) is a formal debt solution designed for people with low income, low debt, and few assets. It freezes your debts for 12 months, and if your financial situation hasn’t improved, all qualifying debts are written off entirely.

How a DRO Works

You apply through an approved intermediary (usually a debt charity or advisor)
The Official Receiver reviews your application
If approved, a moratorium period of 12 months begins
During this period, creditors cannot pursue you
After 12 months, if your circumstances haven’t changed, all qualifying debts are written off

Do I Qualify for a DRO?

You must meet all of the following criteria:

Criteria	Requirement
Total debt	Under £20,000 (increased from £15,000 in 2024)
Assets	Under £1,000
Vehicle value	Under £2,000
Disposable income	Under £75/month after essential expenses
Residency	England, Wales, or Northern Ireland
Not bankrupt	Must not be in an undischarged bankruptcy or IVA

Debts Included in a DRO

Included:

Credit cards
Personal loans
Overdrafts
Catalogue and store cards
Payday loans
Utility arrears
Council tax arrears
Rent arrears

NOT included:

Student loans
Court fines
Child support / maintenance
Mortgage shortfall (after property sale)
Secured loans

DRO vs IVA — Which Is Right for You?

	DRO	IVA
Debt level	Under £20,000	Usually £6,000+
Income	Must be very low (<£75/mo disposable)	Must have regular income
Duration	12 months	5-6 years
Monthly payments	None	Yes, affordable monthly payment
Debt write-off	100% of qualifying debts	Up to 80%
Assets	Must have under £1,000	Can have more assets

If you have very low income and minimal assets, a DRO is often the fastest route to becoming debt-free. However, if you have a regular income and higher debt, an IVA may be more appropriate.

Not sure which solution is right for you? Check your qualification → — answer a few questions and we’ll recommend the best option.

Check If You Qualify

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