Debt Relief Order (DRO)

Debt Relief Order (DRO)

A debt relief order is only available to individuals who have very little disposable income available to pay to their creditors, have few or no assets, and a limited level of debt. If you are eligible for a DRO we can help you with the application.

You may be eligible for a Debt Relief Order if you owe less than £20,000 in total to your creditors, you have £50 or less left over each month after your essential bills and outgoings have been paid, your car (if you have one) is worth less than £1000 and your other assets don’t exceed a value of £1000.

A DRO will last for 1 year, and once your DRO has ended you are released from your debts (with certain exceptions).

We are able to process a DRO application for you, free of charge, but you will need to pay a fee of £90 to the Insolvency Service (the government) for the application to be reviewed and accepted.

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A DRO lasts for just 1 year and you won’t make any further payments to your debts

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Your debts will be written off at the end

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Creditors can’t take further action against you

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The £90 fee can be paid in instalments


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Your DRO is entered on a public register

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Your DRO will show on your credit file for 6 years

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If your situation improves (e.g. your affordability increases and you’re able to pay more than £50 per month towards your debts) and you no longer meet the criteria, your DRO may be withdrawn

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Some debts, like student loans, fines and social fund loans can’t be included

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If you’re a regulated or licensed professional, or you work with money, your employment may be affected

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You can’t act as a director of a company or be involved in its management unless the court agrees

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You can’t take out credit of £500 or more without disclosing that you are subject to a DRO

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You can’t have a DRO if you own your own home. Even if you have negative equity.

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If you acquire any property during the year that the DRO is in force, your DRO could be revoked

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You may have a debt relief restrictions order (the restrictions can be similar to those in force during the DRO) made against you for 2 to 15 years if you act irresponsibly, recklessly or dishonestly

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Your DRO could be withdrawn if you don’t co-operate with the Official Receiver

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You can’t have a DRO if you’ve had one in the last 6 years

Frequently asked questions


As well as directorships, a DRO may affect your job if you’re in a certain type of profession for example, if you’re a solicitor, accountant or insolvency practitioner. You’ll need to speak to your HR department, or professional body to see if your membership will be affected. If you’re planning to apply for a role in finance or security your DRO may affect your employment prospects.


If your situation improves during the course of your DRO, for example your income increases or you receive a lump sum of money, you’ll need to let the Insolvency Service know so they can assess your situation and decide whether it will affect your DRO. There could be serious consequences if you fail to tell them that your situation has improved.


A DRO won’t usually affect an ongoing tenancy but you may struggle to renew/get a new tenancy whilst your DRO is in effect.


You can keep your car as long as it’s worth less than £1000, has been specially adapted for a disability, or is subject to the Motability scheme.


Yes, you have to include all qualifying debts (see ‘disadvantages’ for debts that don’t qualify). Once your DRO is approved you can’t add any debts to it so, if you miss a debt by mistake, you’ll remain responsible for paying it. If the debt takes you above the £20,000 threshold, your DRO may be revoked.


The full balance of any joint debts will be included in your application and will count towards the £20,000 limit however, the joint party isn’t protected so they will remain liable for the full balance of any joint debts.


Once your DRO is approved you don’t have to pay anything to your creditors so you can use whatever disposable income you have to save towards a holiday however, this will only be a small amount because you can only have a DRO if you have less than £50 left over each month.


Rent arrears are a ‘qualifying debt’ which means they will be included within your DRO and no payments will be made towards the debt. Your landlord can’t take steps to recover the arrears, but they can still evict you from the property. You can’t have an allowance within your budget to repay the arrears however, you can choose to use your disposable income (which will be less than £50 per month) towards your rent arrears.


During the 12 months that you’re subject to a DRO, you are protected from further action relating to your debts. Once this period ends, you will be discharged and freed from liability for those debts.


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