What Is a Debt Relief Order?

A Debt Relief Order, or DRO, is a formal insolvency solution for some people in England and Wales who have relatively low assets, little spare income and qualifying debts.

It can be a powerful option where the rules are met, but eligibility must be checked carefully.

What are the current main financial limits?

At September 2026, GOV.UK says you are generally eligible if you owe less than £50,000, have less than £75 a month spare income, have less than £2,000 of assets and do not own a vehicle worth £4,000 or more, alongside the other eligibility rules.

Limits and detailed rules can change, so they should always be checked at the time you apply.

What happens during a DRO?

Qualifying debts are normally protected during the DRO period and creditors included in it are restricted from taking certain action.

If your circumstances continue to meet the rules, qualifying debts are normally written off when the DRO ends.

How do I apply?

You cannot simply submit a DRO yourself. An approved debt adviser or intermediary must assess the position and make the application.

There is currently no application fee for a DRO.

What debts and circumstances need checking?

Not every debt can necessarily be included, and previous insolvency, residence, assets and recent transactions can be relevant.

Tell the adviser about everything you owe and any property, vehicle, savings or other assets rather than deciding yourself what matters.

What are the consequences?

A DRO is recorded on the Individual Insolvency Register during the relevant period and remains on your credit record for six years. Restrictions also apply while the DRO is in force.

Make sure you understand the effect on banking, business activity, credit and any future changes in circumstances.

Is a DRO better than an IVA or bankruptcy?

Not automatically. For somebody who qualifies, it may be much more appropriate than a long IVA, but the answer depends on the full circumstances.

Get free debt advice that compares the available options.

7.53: What Is an IVA?

7.54: What Is Bankruptcy?

7.55: How Are Debt Management Plans, DROs, IVAs and Bankruptcy Different?

Important information

This guide provides general information and is not intended to provide financial, benefits, debt, housing or legal advice. Individual circumstances can be different. Check current information from official sources and seek advice from an appropriately qualified or authorised adviser before making important financial decisions.