What a Debt Relief Order actually is
A DRO is a formal insolvency solution for people who owe money they realistically can't repay, but who don't have enough income or assets to make other solutions worthwhile. It's run by the Insolvency Service and is designed to be the simplest, cheapest route out of unmanageable debt.
Here's the shape of it:
- Once it's approved, your listed debts are frozen for 12 months — creditors can't chase you, take court action, or add interest.
- During those 12 months you usually pay nothing towards those debts.
- At the end, if your situation still doesn't allow repayment, the debts are written off entirely.
A DRO is one option among several — including Breathing Space, a Debt Management Plan, an IVA, and bankruptcy. It's not automatically the best one for everyone, which is exactly why you have to go through a free debt adviser who looks at your whole picture first.
Where DROs apply
DROs exist in England, Wales and Northern Ireland (Northern Ireland has its own separate DRO scheme). Scotland is different — it has the Minimal Asset Process, the Debt Arrangement Scheme and sequestration instead. See the Scotland & NI note further down.
Do you qualify? The three limits
In England and Wales, a DRO has three money limits plus a few conditions. A free debt adviser checks all of them for you — but here's what they're looking at (figures current 2026):
| Test | What it looks at | Limit |
|---|
| Total debt | Your qualifying debts added up | £50,000 or less |
| Spare income | What's left each month after essential living costs | £75 a month or less |
| Assets | What you own — savings, valuables, etc. | £2,000 or less |
| One vehicle | A car/van/motorbike you use, ignored if under the limit | Worth £4,000 or less |
On top of those limits, to get a DRO you must also:
- Not own your home (homeowners generally can't get a DRO).
- Usually live or work in England or Wales (Northern Ireland has its own scheme — see below).
- Not have had a DRO in the last 6 years.
- Not be in another insolvency process — for example bankruptcy or an IVA.
One vehicle is protected
A single car, van or motorbike you actually use doesn't count towards the £2,000 asset limit as long as it's worth £4,000 or less and isn't just for business. That helps people who need a vehicle to get to work or care for someone keep it.
Don't try to judge the limits yourself — the way income, expenses and assets are worked out has detailed rules. A free adviser does the calculation properly and tells you honestly whether a DRO fits.
Which debts can and can't go in
Only "qualifying debts" can be cleared by a DRO. Most everyday debts qualify — but some important ones don't, and you'll still have to pay those.
Usually included (qualifying debts)
- Credit cards and store cards
- Overdrafts, personal loans and payday loans
- Rent and council tax arrears
- Utility, water and phone bills
- Benefit overpayments not caused by fraud
Can't be included — you still have to pay these
- Student loans
- Magistrates' court fines and confiscation orders
- Child maintenance / child support arrears
- TV Licence arrears
- Social Fund and budgeting loans
- Debts run up through fraud
Get every debt listed correctly
If a debt isn't listed in your DRO, it isn't written off — and a wrong list can cause problems. This is one of the biggest reasons a DRO must go through a trained adviser. Not sure which group a debt falls into?
Our which-debt-first guide helps you sort priority from non-priority, and an adviser confirms it.
How the 12 months work — and the credit-file effect
Once your DRO is approved by the Insolvency Service, the 12-month moratorium begins. During that year:
- Your listed debts are frozen — no chasing, no court action, no interest.
- You generally pay nothing towards them.
- You must not take on new credit over a small set amount without telling the lender about the DRO, and you can't act as a company director without the court's permission.
- If your circumstances improve a lot (a windfall, a big jump in income), you must tell the Insolvency Service — the DRO can be revoked.
At the end of the 12 months, if repayment still isn't realistic, your qualifying debts are written off completely. You're free of them.
What it does to your credit file
A DRO is a formal insolvency, so it leaves a mark:
- It appears on your credit file for 6 years from the date it's approved.
- It's listed on the public Individual Insolvency Register while it's live.
- Borrowing will be harder during that period.
For many people who genuinely can't pay, that trade-off is worth a clean start — but a good adviser will spell out the consequences before you commit.
How to apply
Get free advice now — a DRO must go through an authorised intermediary
You cannot apply for a DRO yourself — it must be submitted by an authorised DRO intermediary (a trained debt adviser). It's free: the £90 fee was abolished in April 2024, and advisers can't charge you either. Citizens Advice (0800 144 8848) also has DRO intermediaries at many local offices. Have ready: a list of your debts, your income and outgoings, and what you own.
- List everything — every debt with the amount and creditor, your monthly income and outgoings, and what you own. This is what the adviser needs.
- Get free debt advice from StepChange, National Debtline or Citizens Advice. They'll look at all your options — not just a DRO — and there's no charge.
- Apply through the intermediary. If a DRO is the best fit, the authorised adviser completes and submits the application to the Insolvency Service for you. It's free.
- Live by the rules for 12 months — don't take on new debt, keep your adviser updated if things change, and your qualifying debts are written off at the end if repayment still isn't realistic.
Confused by a debt or court letter while you sort this out? Upload it and we'll explain it in plain English.
Scotland and Northern Ireland — different rules
The DRO described above is the England and Wales scheme. The rest of the UK is different — don't assume the same limits apply:
- Northern Ireland has its own DRO scheme, run separately, with similar but not identical eligibility rules. Get free advice from Advice NI on 0800 028 1881.
- Scotland has no DRO. Instead it has the Minimal Asset Process (MAP) — a simpler, low-cost form of bankruptcy that's the nearest equivalent — plus the Debt Arrangement Scheme (DAS) and full sequestration (bankruptcy). Get free advice from Citizens Advice Scotland on 0800 028 1456.
Never pay a company for debt help you can get free
Ignore adverts promising to "write off up to 90% of your debt" or charging a fee to set up a DRO, IVA or "government scheme". A DRO is free and must go through a free authorised adviser. Fee-charging firms take money you can't spare for something the charities above do for nothing. If an offer feels pushy,
run it through our scam checker.
Free UK debt support
- StepChange Debt Charity — free, FCA-regulated debt advice and DRO intermediaries: 0800 138 1111.
- National Debtline — free advice and template letters: 0808 808 4000.
- Citizens Advice — DRO intermediaries at many local offices: 0800 144 8848.
- GOV.UK — Debt Relief Orders. The official rules and the eligibility checker.
- Not sure which solution fits? Compare all the routes in our debt help guide and check the which-debt-first sorter first.
- Struggling on a low income generally? Run our Universal Credit guide and a free benefits check — money you're owed can ease the pressure.