Debt Relief Orders

A Debt Relief Order (DRO) is a personal insolvency procedure that gives you legal protection from creditors, with your debts discharged after a year. It’s designed for people who owe less than £50,000, have little spare income each month and few assets.

If you qualify for a DRO

• There is no application fee (it was removed in April 2024), and you won’t have to pay anything towards the debts included
• Your creditors can’t recover their money without the court’s permission
• You’re usually discharged from the debts after 12 months

How to get started

You must apply through an intermediary authorised by the Insolvency Service. They’ll assess your debts, income and assets and advise on eligibility, then submit the application. Free debt advice services such as StepChange, or an approved intermediary National Debtline refers you to, can make the application for you. A DRO can be cancelled if your finances improve, if you don’t cooperate with the Official Receiver, or if your income, assets or debts exceed the limits.

Qualifying criteria

To qualify you must meet all of the following: debts of less than £50,000; £75 or less a month spare income; assets worth £2,000 or less, plus a vehicle worth less than £4,000; you’ve lived or worked in England and Wales within the last three years; and you haven’t had a DRO in the last six years.

Figures such as the DRO limits and fee can change — check the latest on gov.uk.

Free, independent debt advice is also available from MoneyHelper, StepChange, National Debtline and Citizens Advice.