Debt Relief Order (DRO): Help & Advice.
Solution for England and Wales
May not be suitable for all. No loans provided. Fees and disadvantages may apply depending on the solution, Read here
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Debt Relief Order (DRO): Help & Advice.
Solution for England and Wales
May not be suitable for all. No loans provided. Fees and disadvantages may apply depending on the solution, Read here
Honesty and Integrity
We make a difference
Last reviewed: 28 July 2026
Reviewed by: Debt Advisory Services (Scotland) Limited, FCA firm reference 671573
How Can A DRO Help Me?
A Debt Relief Order (DRO) writes off your included debts after 12 months, during which time interest and charges are frozen. You won’t need to attend court as your approved intermediary will submit the application on your behalf. Additionally, there is no fee to apply for a DRO. If you are struggling to pay your debts, this could be an option for you.
What is a DRO?
A Debt Relief Order (DRO) is a formal, legally binding solution for people with low income and few assets who cannot realistically repay their debts. It’s arranged through an authorised debt adviser, lasts 12 months, and is recorded on the Insolvency Register.
If your financial situation hasn’t meaningfully improved by the end of that year, any debts included in the DRO are written off completely. During the 12 months, your creditors cannot contact you or take action against you, and you make no payments toward your included debts.
A DRO will affect your credit score, and it may make it harder to get credit, including secured loans or further lines of credit, both during the DRO and for some time after.
How does a DRO work?
A DRO works by freezing your qualifying debts for a fixed 12-month period, during which you make no payments and your creditors cannot take action against you. Here’s how it works, step by step:
1. Speak To An Authorised Debt Adviser
A DRO can only be applied for through an authorised debt adviser, known as an approved intermediary, who will check your eligibility and prepare your application.
2. Your Application Is Submitted
Your adviser submits the application on your behalf. There’s no court attendance and no fee to apply.
3. Your 12-Month DRO Period Begins
Once approved, your DRO runs for 12 months. During this time, your creditors cannot contact you or take legal action, and you make no payments toward your included debts.
4. Your Debts Are Written Off
If your financial situation hasn’t improved by the end of the 12 months, your remaining qualifying debts are written off. The DRO stays on your credit report for six years and will affect your credit rating during that time.
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Am I Eligible For A DRO?
You may be eligible if you:
Owe less than £50,000 in total
Don't own your own home
Have savings or valuable items worth less than £2,000 in total
Own a vehicle worth less than £4,000, or don't own one
Have £75 or less in spare income each month, after essential costs, in other words, not enough left to make your debt repayments
Have lived or worked in England or Wales within the last three years
Aren't currently bankrupt, subject to an interim order, or in an IVA .
Haven't had a DRO in the last six years.
A DRO is only available if you live in England or Wales, it isn’t available in Scotland or Northern Ireland.
What Debts Can Be Included In A DRO?
A DRO can include most unsecured, non-priority debts, borrowing where the consequences of non-payment don’t put your home or freedom at immediate risk. There’s no official fixed list, generally, if a debt isn’t specifically excluded, it qualifies.
Debts that can usually be included:
- Credit cards and store cards
- Personal loans and overdrafts
- Catalogue and home-collected credit
- Payday loans
- Benefit overpayments
- Rent, utility, council tax, and mortgage shortfall arrears
- Buy now, pay later agreements
- Money owed to HMRC, such as income tax
- Informal debts owed to family or friends
- Hire purchase agreements, if you’re in arrears
Debts that cannot be included:
- Student loans
- Court fines
- Damages for personal injury or death a court has ordered you to pay
- Child maintenance arrears
- Social fund and crisis loans
- Debts secured against any possessions you own
- TV licence arrears
What Are The Advantages Of A DRO?
1. Your debts included in the DRO will be written off after 12 months.
2. Interest and charges are stopped once your DRO is approved.
6. Once approved, creditors included in the DRO can't take further action or contact you about those debts.
5. Creditors included in the DRO can't take further action or contact you while it's in place.
3. You don't have to go to court, your approved intermediary submits your application for you.
4. There is no fee to apply for a DRO
What Are The Disadvantages Of A DRO?
5. Strict eligibility limits apply, including caps on your total debt, income, and assets, so not everyone in financial difficulty will qualify.
1. Your details will be kept on a public register for 15 months.
2. A DRO will stay on your credit file for six years after it starts, which could make it difficult to get credit in the future.
3. If you break the rules of the DRO, it could be cancelled.
4. You can't apply for a DRO if you own a property.
6. You can't apply for another DRO for six years after this one ends, and new credit over £500 during that time must disclose your DRO status.
Is A Debt Relief Order The Same As An IVA?
No, a Debt Relief Order (DRO) and an Individual Voluntary Arrangement (IVA) are two different debt solutions, designed for different financial situations.
- A DRO is aimed at people with a low income, minimal assets, and a relatively small amount of debt. It’s free to apply for, doesn’t involve monthly payments, and your included debts are written off after 12 months.
- An IVA is designed for people with higher levels of unsecured debt who have a stable income and can afford to make regular monthly payments over several years, typically five to six. Unlike a DRO, an IVA does have associated fees, built into your monthly payments, and requires agreement from creditors holding at least 75% of your debt value.
In short, a DRO suits those who can’t realistically make repayments at all, while an IVA suits those who can, at a reduced, structured rate. If you’re unsure which applies to your situation, speaking to a debt adviser can help you understand which option, if either, is the right fit.
How Much Does A DRO Cost?
There is no fee to apply for a Debt Relief Order. The entire process, from application through to your debts being written off, is free.
Not Sure A DRO Is Right For You?
If you’re unsure whether a DRO is right for you, speaking to a qualified adviser is the best next step, they’ll assess your full situation before recommending any solution. At Debt Advisory Services, we’re your partners in achieving financial stability, committed to honest, ethical, and supportive advice every step of the way.
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Debt Relief Order FAQs
How long does the application process take for a Debt Relief Order?
A Debt Relief Order (DRO) application typically takes around two weeks to be assessed and approved, though it can occasionally take longer. The DRO itself then runs for 12 months from the date it’s approved.
How long does a Debt Relief Order last?
A Debt Relief Order (DRO) lasts for 12 months from the date it’s approved. During this time, known as the moratorium period, you make no payments toward your included debts, and your creditors cannot contact you or take action. If your situation hasn’t improved by the end of the 12 months, your qualifying debts are written off.
What happens if my financial situation improves while I'm under a DRO?
If your income or assets increase significantly while you’re under a Debt Relief Order (DRO), you need to inform your debt adviser. Your DRO could then be reviewed, and in some cases cancelled or revised, which may mean you need to start repaying your debts.
Are there financial restrictions during a DRO?
Yes. While your DRO is active, you can’t act as a company director, and you must disclose your DRO if you apply for credit of £500 or more. You’re also expected to live within the income and expenditure assessed as part of your application, since your DRO is based on having little to no spare income.
Can you get a mortgage or other credit with a DRO?
It’s difficult to get a mortgage or mainstream credit while your DRO is active, since it’s recorded on your credit file for six years. Some specialist lenders may still consider you, though usually at higher rates. Your options improve once the DRO ends, and continue to improve as it ages off your credit file.
Will a DRO stop bailiffs?
Yes, once your DRO is approved, creditors included in it cannot use bailiffs, or take any other action, to recover the debts covered by your order. This protection lasts for the full 12-month period. Debts not included in your DRO aren’t protected.
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Industry Standards
As a proud member of DEMSA, we are deeply committed to maintaining the highest industry standards.
This commitment ensures that our debt management services are conducted with the utmost ethical integrity, transparency, and professionalism.
We strive to build trust with both our clients and creditors, providing solutions that not only meet regulatory requirements but also foster confidence in our approach.
Our adherence to DEMSA’s rigorous standards reinforces our dedication to delivering reliable, trustworthy advice and support throughout your financial journey.
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