MoneySurgeon

England, Wales and Northern Ireland

Debt Relief Orders

A Debt Relief Order (DRO) is a formal insolvency option for people with relatively low debts, very little spare income and few assets. DROs are applied for through an approved intermediary, such as a debt adviser at a charity.

How it works

  • An approved intermediary checks whether you meet the eligibility criteria and submits the application.
  • If approved, creditors included in the order cannot normally take action to recover those debts for 12 months.
  • If your circumstances do not improve during that period, the included debts are normally written off.

Things to consider

  • You must apply through an approved intermediary (usually a free debt adviser), not directly or through a commercial company.
  • Strict limits apply to total debt, spare monthly income, assets and vehicle value. These limits are set by law and differ between nations — check current figures with an adviser.
  • In England and Wales there is no fee to apply for a DRO. In Northern Ireland, check the current application rules with a free adviser.
  • Not all debts can be included, such as student loans and court fines.

Risks and consequences

  • A DRO is recorded on your credit file for six years and on the public Insolvency Register.
  • Restrictions apply during the order, such as on borrowing more than a set amount without disclosure.
  • If your circumstances change, the order may be revoked.

This page is general information, not advice. Money Surgeon does not recommend specific solutions. Whether any option is suitable depends on your full circumstances — speak to a qualified adviser before making decisions.