How to Apply for a Debt Relief Order in the UK

Debt problems can quickly feel overwhelming when bills keep piling up and income cannot keep pace. If you are struggling with low income and little to no assets, you may be able to apply for a debt relief order as a legal way to pause debts and get a fresh start.

This article explains how to apply for a debt relief order in the UK, step by step. It covers who can apply, what you need before applying, the role of an approved intermediary, and what happens after approval, so you can decide if a DRO is the right solution for your situation.

What a Debt Relief Order Is

A Debt Relief Order (DRO) is a formal debt solution designed for people with low income and very few assets. It gives legal protection from creditors while your financial situation is assessed over a fixed period. For many, choosing to apply for a debt relief order can provide immediate relief from constant payment demands and creditor contact.

What a DRO Does

Once a DRO is approved, most creditors must stop chasing you for payment. This includes phone calls, letters, and legal action. During this time, you are not required to make payments toward the debts included in the order, as long as your financial situation does not improve significantly.

A DRO acts as a breathing space. It freezes your qualifying debts and gives you time to stabilise your finances without pressure. If your circumstances stay the same throughout the DRO period, those debts are written off at the end. However, this protection comes with rules, and understanding what debts are included is essential before moving forward.

Debts It Covers

A debt relief order application can include most common unsecured debts, such as:

• Credit cards and store cards
• Personal loans and payday loans
• Overdrafts
• Utility bill arrears
• Council tax arrears
• Benefit overpayments

Some debts cannot be included, such as student loans, court fines, and child maintenance. Knowing which debts qualify can make or break a DRO application process, and this is often reviewed in detail by an approved intermediary before submission.

How Long It Lasts

A DRO lasts for 12 months, known as the “moratorium period.” During this time, your creditors cannot take action against you for the debts listed in the order. You must follow strict rules, including informing the Insolvency Service if your income or assets increase.

At the end of the 12 months, if your situation has not improved, the qualifying debts are legally written off. But before you move to that stage, the next key question is critical: who actually qualifies for this type of debt relief?

Who Can Apply for a DRO

Understanding who can apply for a DRO is crucial, as strict eligibility rules apply. Not everyone with debt can use this option, and meeting every requirement is essential for approval.

Income, Debt, and Asset Limits

To apply for a debt relief order, you must fall within specific financial limits. These limits are assessed during the DRO application process and checked carefully before submission.

In general, you must have:

• Low disposable income after essential living costs
• Total qualifying debts below the set DRO threshold
• Assets of low value, including savings and valuables

Certain assets, such as a basic vehicle within a value limit, may be allowed. Anything above the limits could result in a rejected debt relief order application.

Residency Rules

You must meet UK residency requirements to apply. This usually means you:

• Live in England, Wales, or Northern Ireland, or
• Have lived or worked in these areas within the last three years

Scotland has a different debt system, so DROs do not apply there. Residency checks are part of the review carried out by an approved intermediary DRO adviser.

When a DRO Is Not Allowed

A DRO is not suitable in every situation. You cannot apply if you:

• Own high-value assets or property
• Have surplus income above the allowed limit
• Have had a DRO within the last six years
• Are involved in another formal insolvency process

These rules exist to ensure DROs are used only by those who genuinely need them. If you do not meet the criteria, other debt solutions may be more appropriate.

Struggling with debt? Reach out to us today for guidance: 

What You Need Before You Apply

Before you apply for a debt relief order, preparation is critical. A strong application depends on accurate financial information, and even small errors can delay or stop approval. Gathering everything in advance also makes the DRO application process smoother when you speak to an adviser.

Debt Details

You must provide a full list of all your debts, even those you are not currently paying. This allows the approved intermediary to decide which debts can be included in the debt relief order application.

Your debt details should include:

• Creditor names and contact details
• Account or reference numbers
• Current balances
• Any missed payments or arrears

Leaving out a debt can cause problems later, as only listed debts are protected once the DRO is approved. This step sets the foundation for the entire application.

Income and Expenses

Your income and household spending are reviewed to confirm that you have little or no spare income each month. This helps determine whether a DRO is the right option for your situation.

You will usually need to show:

• Wages, benefits, or other income sources
• Rent or mortgage payments
• Utility bills and council tax
• Food, travel, and essential living costs

These figures must be realistic and up to date. Overstating expenses or missing income can lead to delays or rejection. Once income and spending are clear, attention turns to what you own, which is just as important.

Assets and Documents

Assets are anything of value you own, including savings and personal items. You will need to declare all assets honestly, even if you believe they fall within allowed limits.

Commonly reviewed assets include:

• Bank balances and savings
• Vehicles
• Valuables such as jewellery or electronics

Supporting documents, such as bank statements or benefit letters, may be requested. With everything prepared, the final piece of the puzzle is knowing who submits the application on your behalf.

The Role of an Approved Intermediary

You cannot apply for a DRO on your own. The law requires you to go through an approved intermediary DRO adviser, who acts as the link between you and the Insolvency Service.

What an Approved Intermediary Does

An approved intermediary reviews your full financial situation and confirms whether you meet all DRO rules. They help complete the debt relief order application and submit it for you.

Their role includes:

• Checking eligibility
• Reviewing debts, income, and assets
• Explaining rules and restrictions
• Submitting the application securely

This ensures the information provided is accurate and compliant with legal requirements.

Why You Must Use One

Using an approved intermediary protects you from mistakes that could lead to rejection or penalties later. They make sure you understand the obligations involved and confirm that a DRO is the most suitable option before you proceed.

Without an intermediary, you simply cannot apply for a debt relief order, even if you meet all the criteria.

Where to Find an Approved Intermediary

Approved intermediaries usually work for free debt advice organisations across the UK. These services are authorised to handle DRO applications and are experienced in guiding people through the process.

Common places to find help include:

• Debt charities
• Local advice centres
• Online debt advice services

Once you connect with an intermediary, the process becomes much clearer. From here, everything leads to one decisive stage: the exact steps to apply and what happens after the application is submitted.

Steps to Apply for a DRO

Once you are ready to apply for a debt relief order, the process follows a clear structure. Understanding the steps to apply for a DRO helps avoid delays and ensures your application is handled correctly from the start.

Contact an Intermediary

The first step is to contact an approved intermediary DRO adviser. This could be a debt charity or an authorised advice service. You cannot submit a debt relief order application without one, so this step starts the entire process.

The intermediary will ask for basic details and arrange a full review of your finances. This initial contact confirms whether a DRO is worth exploring before moving further.

Review Your Finances

Your intermediary will carry out a detailed review of your debts, income, expenses, and assets. This ensures you meet all eligibility rules and that a DRO is the most suitable option.

During this stage, you will go through:

• All qualifying and non-qualifying debts
• Monthly income and essential spending
• Assets and savings

Accuracy is critical here. Any incorrect or missing information can affect the outcome of the application.

Complete the Application

Once eligibility is confirmed, the intermediary completes the debt relief order application on your behalf. They will enter all financial details into the official system and explain the restrictions that apply during the DRO period.

You will be asked to check the information carefully before agreeing to submit it. This is your final chance to correct any errors.

No Fee to Pay

There is no application fee for a DRO. The £90 fee was abolished on 6 April 2024, so you do not need to pay anything to apply.

Submit the Application

Once you have checked and agreed the information, the intermediary submits your application electronically.

This leads to the most anxious part for many applicants: what happens after submission and how long you need to wait for a decision.

The DRO Application Process

The DRO application process begins once your debt relief order application is submitted to the Insolvency Service. This stage focuses on verification rather than reassessment, but it is still thorough.

What Happens After Submission

The Insolvency Service reviews the information provided by your intermediary. They may contact you or the intermediary if clarification is needed, but most applications move forward without direct contact.

If approved, your DRO is registered, and creditors are notified. From that moment, qualifying debts are legally frozen.

How Long Approval Takes

In most cases, a decision is made within a few working days. However, complex cases may take longer if additional checks are required.

During this waiting period:

• Creditors may still contact you
• Payments are not yet legally paused

Protection only starts once the DRO is officially approved.

What the Insolvency Service Checks

The Insolvency Service checks that you meet all legal criteria and that the information provided is accurate. This includes:

• Debt and asset limits
• Income and expenditure figures
• Previous insolvency history

They also assess whether the application has been submitted in good faith. If everything is in order, approval follows.

With the process complete, the focus then shifts to life after approval, what rules you must follow and what happens to your debts over the next 12 months.

What Happens After a DRO Is Approved

Once you apply for a debt relief order and it is approved, legal protection begins straight away. This stage is often a relief for many people, but it also comes with responsibilities that must be followed throughout the DRO period.

Debt Freeze Period

After approval, your qualifying debts are frozen for 12 months. Creditors included in the debt relief order application must stop chasing you for payment and cannot take legal action against you.

During this period:

• Interest and charges on included debts stop
• Creditors cannot contact you for payment
• Court action related to those debts is paused

This gives you space to manage day-to-day living costs without pressure. However, the protection only remains in place if you follow the rules set out in the DRO.

Rules You Must Follow

While your DRO is active, you must stick to strict conditions. These rules are designed to ensure the DRO remains fair and valid.

You must:

• Inform the Insolvency Service if your income increases
• Report any new assets you receive
• Avoid taking out credit above the allowed limit without disclosure

Failing to follow these rules can result in restrictions or the DRO being cancelled. The next outcome depends entirely on whether your situation stays the same over the 12 months.

When Debts Are Written Off

At the end of the 12-month period, if your financial circumstances have not improved beyond the allowed limits, the debts included in the DRO are written off permanently.

You are no longer legally required to repay those debts, and creditors lose the right to collect them. This marks the end of the DRO and provides a genuine fresh start.

What Happens If Circumstances Change

If your income increases, you receive a lump sum, or your assets rise above the allowed limits, you must report this immediately. The Insolvency Service will review the changes and decide whether the DRO should continue.

Possible outcomes include:

• The DRO continuing unchanged
• The DRO being revoked
• A different debt solution being required

This final stage highlights why honesty and awareness are essential from start to finish. With the DRO complete, the focus then moves to rebuilding finances and avoiding future debt problems.

Other Debt Solutions

If you feel like a DRO is not the right option for you, you might want to explore potential debt solutions in the UK. There are several options available in the UK, each with its own eligibility criteria. Choosing the right option can help resolve your debt issues, but the wrong one may make your financial situation worse.

However, it is essential to seek professional advice before committing to any debt solution. A debt advisor can help you assess your situation and guide you in selecting the most appropriate option.

Some of The Key Debt Solutions Available in England, Northern Ireland, and Wales:

• Debt Management Plan (DMP): An informal arrangement where you make monthly payments toward your debts. There is no legal commitment, but your creditors may agree to reduce interest or freeze fees.
• Individual Voluntary Arrangement (IVA): A formal agreement where you make regular payments to creditors over 5 or 6 years. The remaining debt may be written off, but this solution has strict criteria.
• Bankruptcy:  A formal legal process that can clear most debts if you are unable to repay them. Bankruptcy provides a financial reset, but it also has serious long-term consequences, including restrictions on your financial affairs and potential asset loss.

Debt Solutions Available in Scotland

1. Protected Trust Deed: A formal agreement to repay part of what you owe over four years. The remaining debt may be written off afterward. It is legally binding and affects your credit rating.
2. Debt Arrangement Scheme (DAS): A government-backed scheme allowing you to repay your debts through a Debt Payment Programme (DPP) based on what you can afford. Interest and charges could be frozen, and creditors can’t take legal action.
3. Sequestration (Scottish Bankruptcy): A formal insolvency process where most debts may be written off, but assets may be sold to repay creditors. It offers a fresh start but comes with serious consequences.
4. Minimal Asset Process (MAP): A simplified form of bankruptcy designed for individuals with low income and few assets. It allows eligible debts to be written off after six months, provided the individual fully cooperates with the process. However, in practice, the process may take longer depending on the complexity of the case. MAP also offers lower fees and reduced administrative burden compared to full bankruptcy.

Caution: These debt solutions have both advantages and drawbacks, so it’s important to carefully weigh your options before making a decision.

Not sure which option to move forward with? Reach out to us today for guidance:

Conclusion

Applying for a Debt Relief Order can be a practical solution if you are struggling with debt, have low income, and own very few assets. When you apply for a debt relief order, the process is structured and legally supported, but it depends on meeting strict eligibility rules and providing accurate financial information. 

From preparing your details to working with an approved intermediary and completing the DRO application process, each step plays an important role in securing approval.

If your DRO is approved, it offers breathing space through a 12-month debt freeze and, in many cases, a full write-off of qualifying debts at the end. However, it also comes with clear responsibilities that must be followed throughout the period. 

By understanding how the system works and what is expected, you can make an informed decision about whether a debt relief order is the right path toward regaining financial stability.

Key Points

• A Debt Relief Order (DRO) is designed for people with low income and minimal assets who cannot repay their debts.
• You must meet strict eligibility rules on income, total debt, assets, and residency to apply for a debt relief order.
• Most common unsecured debts, such as credit cards, loans, and council tax arrears, can be included in a DRO.
• A DRO lasts for 12 months, during which qualifying debts are frozen and creditors must stop taking action.
• You cannot submit a debt relief order application on your own and must use an approved intermediary.
• Preparing accurate debt details, income and expenses, and asset information is essential before applying.
• The steps to apply for a DRO include contacting an intermediary, reviewing finances, completing the application, and submitting it.
• The DRO application process involves checks by the Insolvency Service to confirm eligibility and accuracy.
• If approved, you must follow strict rules and report any changes in income or assets during the DRO period.
• At the end of the 12 months, qualifying debts are written off if your financial situation has not improved.

FAQs

How long does the DRO application process take?

Once your approved intermediary submits your Debt Relief Order application, the Insolvency Service will usually review it within a few working days and contact you with their decision.

What happens after a DRO is approved?

After a DRO is approved, the qualifying debts included are frozen for 12 months. Creditors listed in the order cannot take action against you during this period. If your circumstances do not improve, the debts are usually written off at the end of the DRO.

Does a DRO affect my credit record?

Yes. A Debt Relief Order is recorded on your credit file and normally remains there for six years. This can affect your ability to obtain new credit during that time.

What happens if my circumstances change after my DRO is approved?

You must inform the Insolvency Service if your income, assets, or financial situation significantly improve during the DRO period. Your DRO may be reviewed, and changes could affect whether it continues.

Can I apply for another Debt Relief Order after one finishes?

In most cases, you cannot apply for another Debt Relief Order until six years have passed from the date your previous DRO was approved.