Debt solutions · 5 min read
What is a Debt Relief Order (DRO)? Eligibility and how it works
A Debt Relief Order (DRO) is a formal debt solution for people with lower debts, very little spare income and few assets. It can freeze your debts for 12 months, after which they are usually written off.
How a DRO works
A DRO is applied for online through an approved intermediary, then considered by the Official Receiver. Once approved, the creditors listed cannot chase you or take action for 12 months. If your circumstances have not improved by the end of that period, the debts are written off.
Who qualifies for a DRO?
In England and Wales, the main criteria at the time of writing are shown below. Limits can change, so an intermediary will check the current figures with you.
- Qualifying debts of £50,000 or less
- £75 or less left each month after essential living costs
- Assets worth £2,000 or less (a vehicle worth up to £4,000 is usually allowed)
- Living in, or having a recent connection with, England or Wales
- No DRO in the last six years
What does a DRO cost?
The application fee for a DRO in England and Wales was removed in April 2024. Northern Ireland has its own rules and limits.
Downsides of a DRO
A DRO appears on your credit file for six years and on the Insolvency Register. There are restrictions during the order, such as not borrowing more than £500 without telling the lender. If your income or assets increase during the 12 months, the DRO could be revoked.
This article is general information only and may not reflect your circumstances. Rules and limits can change, so always check the details with an authorised provider before making a decision.
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