Will a Debt Relief Order affect my partner in the UK? (A Guide 2025)

Are you worried about how a Debt Relief Order (DRO) might impact your partner in the UK? If you’re considering a DRO or just want to understand its effects on joint finances, credit scores, and shared responsibilities, this guide for 2025 will walk you through everything you need to know. 

So, we invite you to read on our article and learn how a DRO works, when it could affect your partner, and practical steps to protect your finances together. 

What is a Debt Relief Order (DRO)?

A Debt Relief Order (DRO) is a formal debt solution available in England, Wales, and Northern Ireland. It is designed for people with low income, few assets, and debts they cannot realistically repay.

When a DRO is approved, your creditors cannot chase you for payment for 12 months. During this time, you don’t make payments beyond what you can afford toward the debts covered by the order. If your financial situation hasn’t improved at the end of the 12 months, any qualifying remaining debts are typically written off.

Keep in mind, a DRO will stay on your credit report for six years and can affect your credit score. Many see a DRO as a more affordable and straightforward option compared to bankruptcy, especially if your debts are smaller. 

Key Facts About DROs

• Applies to individuals only – You must apply through an authorised debt adviser. 
• Duration – Lasts for 12 months. After this, the included debts are usually written off. 
• Debts covered – Most unsecured debts, such as credit cards, loans, and overdrafts, can be included. 
• Restrictions – You face limits on borrowing money, business activity, and financial management while the DRO is in place. 
• Credit record – A DRO stays on your credit file for six years. 
• Cost – Since April 2024, applying for a DRO in England and Wales is free (previously a £90 fee). 

Who is Eligible for a DRO?

To qualify for a DRO, you must meet strict rules set by the Insolvency Service:

• Debt limit – Your total unsecured debts must be £50,000 or less. 
• Assets limit – Your total assets (not counting your vehicle) must be £2,000 or less. 
• Vehicle limit – Any car or vehicle you own must be worth £4,000 or less. 
• Disposable income – After covering bills and living costs, you must have less than £75 left each month. 
• Location – You must live in England, Wales, or Northern Ireland, or have lived there in the last three years.  
• Other insolvency solutions – You cannot already be in bankruptcy, an IVA, or another DRO. 
• Application – You must apply through an approved intermediary (a debt adviser authorised to handle DRO applications). 

A Debt Relief Order is a useful option if you have low income, few assets, and debts below the set limits. It offers legal protection and a chance for a financial reset after 12 months. However, it is only available if you meet the strict eligibility rules, which is why getting proper advice before applying is essential. 

How a DRO Works in Practice?

A Debt Relief Order (DRO) follows a set process, and it is important to know how it works before applying. Below is a breakdown of the key stages.

Who Can Apply and How?

• A DRO can only be applied for by the individual in debt. 
• You cannot apply directly. Instead, you must go through an approved intermediary such as a debt adviser from organisations like DAAS, StepChange or Citizens Advice. 
• The intermediary checks your eligibility and submits the application on your behalf to the Insolvency Service. 

Duration of a DRO

• A DRO normally lasts for 12 months (known as the “moratorium period“). 
• During this time, your creditors cannot chase you for payments, add interest, or take legal action. 
• At the end of the 12 months, if your situation has not improved, your qualifying debts are written off. 

Debts Included in a DRO

A DRO covers most common types of unsecured debts, such as:

• Credit cards 
• Personal loans 
• Overdrafts 
• Utility arrears 
• Payday loans 

Debts Not Covered by a DRO

Some debts are excluded, which means you will still be responsible for them. These include:

• Student loans 
• Court fines 
• Child maintenance or support payments 
• Certain damages or compensation orders 

Effects on Assets and Credit File

• You will usually be able to keep basic household items and low-value assets, but anything above the limit may prevent you from qualifying. 
• Your car is allowed only if it is worth £4,000 or less, unless it is specially adapted for a disability. 
• A DRO will appear on your credit file for 6 years, which will affect your ability to get credit, mortgages, or other financial products during that time. 

Will a Debt Relief Order Affect My Partner?

A common concern is whether a DRO impacts your partner, spouse, or someone you live with. In most cases, a DRO only applies to the person who makes the application. Your partner is not legally responsible for your individual debts unless they are joint or shared.

Individual vs. Joint Responsibility: What’s the Difference?

• Individual debts – Credit cards, personal loans, or overdrafts in your name only are included in the DRO. Your partner is not affected by these debts or the DRO process. 
• Joint debts – If you have loans, credit cards, or other debts in both your names, these are considered joint debts. Creditors can still pursue your partner for the full amount, even if a DRO is granted for your share. 

Scenarios Where a Partner Could Be Affected by Your DRO in the UK

1. Joint bank accounts – If the account is overdrawn, your DRO may protect your share, but your partner remains liable for the full debt. 
2. Guarantor loans – If your partner has co-signed a loan for you, they are still responsible if your DRO does not cover their liability. 
3. Property ownership – If you jointly own property, the DRO will not remove your partner’s legal responsibility. 

A DRO does not automatically affect your partner’s credit score or finances. The only situations where a partner could face consequences involve shared debts, joint accounts, or co-signed agreements. Therefore, open communication is recommended to avoid surprises and ensure both partners understand financial responsibilities. 

What Happens If We Have Joint Debts or Accounts?

If you and your partner share debts or bank accounts, a DRO can affect these differently from your individual debts. It’s important to understand how joint responsibility works. Here is how it affects under the following scenarios:

1. For Joint Debts in a DRO

• Inclusion in your DRO – Any debt you share with your partner, such as a joint credit card or loan, can be included in your DRO application. 
• Debt limit – These joint debts count toward your total debt limit for a DRO. 
• Effect on your partner – Creditors can still pursue your partner for the full amount of the joint debt. Your DRO only protects your share. 

2. For Joint Bank Accounts

• Overdrafts – If a joint account is overdrawn, your DRO can protect your portion, but your partner remains responsible for the entire overdraft. 
• Deposits and withdrawals – Your DRO does not prevent your partner from using the account or managing funds, but care should be taken to avoid complications during the DRO period. 

3. For Guarantor or Co-Signed Loans

If your partner has co-signed a loan for you, your DRO does not remove their liability. Creditors can still request payment from your partner. 

4. Ownership and Liability

• For Property or shared assets – If property is jointly owned, your DRO cannot release your partner from legal responsibility. 
• For Other shared obligations – Any bills, utilities, or agreements in both names remain your partner’s responsibility if not included in the DRO. 

Therefore, always keep in mind tha a DRO protects your share of joint debts, but your partner remains fully liable for any shared accounts, co-signed loans, or jointly owned assets. It’s important to understand which debts are affected and communicate clearly with your partner to avoid financial surprises.  

Will My Partner’s Credit Score Be Affected?

One common concern is whether a DRO will impact your partner’s credit record. In most cases, a DRO affects only the person who applies, but certain situations can create indirect effects.

Individual Debts

• A DRO only appears on the credit file of the person who applies. 
• If the debts are in your name alone, your partner’s credit score is not affected. 
• Lenders will see the DRO on your file, but it does not show up on your partner’s file. 

Joint Debts

• If you share a debt, such as a joint credit card or loan, the DRO can protect your share. 
• Your partner remains fully responsible for the debt, and any missed payments may appear on their credit record, which could affect their score. 

What Will Happen If You Have Shared Addresses and Credit Links?

Here’s what you need to know about it:

• Some lenders may check current or previous addresses and notice the DRO when assessing your partner. 
• Generally, your partner’s ability to get credit is not restricted unless they are linked to the debt directly. 
• Co-signed or joint accounts are the main way a DRO might indirectly impact your partner’s credit file. 

A DRO does not automatically affect your partner’s credit score, unless they are a joint account holder or guarantor on a debt included in the DRO. Shared addresses alone usually have no direct impact. So, it is recommended to maintain clear communication and review joint accounts before applying. 

Do Household Finances Get Considered Under DRO Assessment?

Yes, when applying for a DRO, your personal income and expenses are assessed to determine whether you qualify. Many people wonder if their partner’s finances are taken into account.

How Household Income and Expenses Are Considered

• Only your individual income and essential expenses are included in the DRO assessment. 
• Essential living costs such as rent, utility bills, food, and travel are deducted from your income to calculate disposable income. 
• Your partner’s income is generally not included in this calculation unless it is part of a joint account used to pay shared debts. 

What Will Happen If You And Your Partner Share a Fair Split of Bills?

If you share household bills, the DRO assessment considers your fair share of the expenses. The intermediary (approved debt adviser) will review what portion of the household costs is reasonably yours.   

This ensures the DRO calculation is accurate without unfairly including your partner’s income or spending. 

Adviser Assessment

• A qualified DRO intermediary will help determine your eligible income and expenses. 
• They will guide you on reporting shared costs, joint obligations, and any assets correctly to avoid issues with your application. 

Household finances are considered in terms of your personal share of income and expenses. Your partner’s earnings are generally not included, and a fair split of bills is assessed by your DRO adviser to ensure eligibility. 

Can a DRO Affect My Partner’s Ability to Borrow?

No, a Debt Relief Order applies only to the individual who files it. Your partner’s borrowing, financial decisions, and credit applications are generally not restricted by your DRO.

Impact on Financial Decisions

• Your DRO does not legally restrict your partner from taking out loans, credit cards, or mortgages. 
• Any personal financial decisions made by your partner are independent of your DRO. 

Lenders’ Views and the Insolvency Register

• Lenders primarily check the applicant’s own credit history. 
• If your partner has no joint accounts or co-signed loans linked to your debts, lenders will not see your DRO when assessing them. 
• Your DRO is listed on the Individual Insolvency Register under your name only. It does not automatically appear on your partner’s record. 

Situations to Watch

• If your partner is a joint account holder or guarantor for a debt included in your DRO, lenders may consider this when evaluating their applications. 
• Otherwise, your DRO does not affect their borrowing or financial reputation. 

In summary, a DRO will not directly limit your partner’s ability to borrow or make financial decisions, except in cases involving joint debts or co-signed loans. 

How Can DRO Affect Relationships and Living Arrangements

A DRO is designed to affect only the individual who applies. However, there are practical considerations when it comes to living arrangements, marriage, or joint property ownership.

What If You and Your Partner are Planning to Move in Together or Get Married?

• Applying for a DRO does not legally affect your partner when moving in together or getting married. 
• Marriage or cohabitation does not automatically make your partner responsible for your debts. 
• Your partner remains liable only for debts that are jointly held or co-signed. 

What If You and Your Partner Buy Property or Shared Assets?

• If you and your partner jointly buy property, your DRO does not release them from legal responsibility. 
• Any mortgages or loans taken in both names remain enforceable against both parties. 
• A DRO only protects your individual share of debts or assets within the set limits.  

Practical Considerations

• Open communication is important: let your partner know about your DRO plans to avoid misunderstandings. 
• Joint finances should be reviewed carefully. Furthermore, avoid adding new joint debt while the DRO is in place. 
• While there is no legal requirement to inform your partner, discussing finances can help maintain trust and manage shared responsibilities. 

Overall, a DRO does not legally affect your partner in terms of relationships or living arrangements. The main considerations are joint property, shared debts, and clear communication about financial responsibilities. 

Things Your Partner Should Know About Your DRO 

Even though a DRO only affects the individual who applies, keeping your partner informed is important for trust and financial planning.

Key Points for Your Partner

• No legal obligation to tell them – You are not required by law to inform your partner about your DRO. 
• Shared finances – If you have joint debts, accounts, or co-signed loans, your partner should understand their potential responsibilities. 
• Living arrangements – Marriage or living together does not automatically make your partner liable for your DRO-covered debts. 
• Impact on credit – Your DRO will not appear on your partner’s credit file unless they are a joint debtor or guarantor. 
• Practical planning – Discussing your DRO helps with budgeting, managing household bills, and making future financial decisions together. 

Misconceptions to Avoid

• Living together or marrying does not add liability for your individual debts. 
• Your DRO only applies to your debts and does not extend to your partner’s financial responsibilities. 

Things That Could Affect the DRO Process

• Honest reporting – Giving full and truthful information to your DRO adviser is essential. 
• Actions like transferring assets, preferring one creditor over another, or undervaluing property can cause application delays or refusal. 
• Ensure all joint and individual finances are properly accounted for during the application. 

While your DRO legally affects only you, sharing information with your partner helps prevent misunderstandings, protects joint finances, and ensures both of you can plan effectively for the future. 

Quick Checklist for Couples

If you or your partner are considering a DRO, use this checklist to make sure you cover all important points:

1. Check if debts involve your partner: Identify any joint loans, credit cards, or co-signed agreements.  
2. Review joint accounts: Determine how overdrafts or shared bank accounts will be affected. 
3. Discuss finances openly: Make sure both partners understand the DRO, responsibilities, and potential impact on shared bills. 
4. Follow proper reporting rules: Report income, assets, and expenses accurately to the DRO adviser. 
5. Understand the limits: Confirm that your debts, assets, and disposable income meet DRO eligibility requirements. 
6. Plan for future financial decisions: Discuss how the DRO might affect household budgeting, borrowing, and major purchases. 
7. Seek professional advice if unsure: A debt adviser can help clarify responsibilities and guide the DRO process. 

This checklist helps couples navigate DRO applications safely, ensuring that shared finances and responsibilities are properly managed and understood. 

Alternatives to a DRO in the UK

A Debt Relief Order (DRO) can be a useful option for people with low income, few assets, and relatively small debts. However, if you do not qualify for a DRO, or if it does not suit your situation, there are other debt solutions available across the UK. 

Each alternative has its own rules, benefits, and drawbacks. Choosing the right one depends on your personal circumstances.

What Are Your Options If a DRO Isn’t Suitable?

Not everyone meets the strict eligibility limits for a DRO. For example, your debts may be too high, or you may have assets above the threshold. In such cases, it’s important to explore other debt solutions that can provide relief, protection, and a path to financial recovery. 

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.
• Debt Relief Order (DRO): Designed for individuals in severe financial distress, this option freezes interest and allows a year of no payments, potentially leading to debt resolution.
• 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.

Important Considerations

Each option has pros and cons, including how long it affects your credit file, whether you risk losing assets, and the costs involved. Carefully weighing these factors is essential before making a decision. 

Need More Help to Manage Your Debts? 

At Debt Advisory Services, we aim to help you explore practical options. Updates to the DRO process mean that more people may now qualify, with clearer application steps and better protection in place. 

Take a look at our guide on applying for a Debt Relief Order, or get in touch with our experienced advisers to see if you meet the new criteria. 

Our team is always here to help you start fresh.

Get Professional Advice

If you are unsure which debt solution suits your situation, speak to a professional debt advisor. Free, independent advice services like MoneyHelper can help you assess your finances and find the best option for you.

Final Thoughts

A Debt Relief Order (DRO) is a practical solution for individuals in the UK struggling with low income, limited assets, and manageable debts. Importantly, a DRO affects only the person who applies and generally does not impact a partner’s finances, credit score, or ability to borrow, unless there are joint debts, co-signed loans, or shared accounts involved.

Open communication with your partner is key to avoiding surprises and ensuring both of you understand responsibilities related to shared finances. Accurately reporting your income, expenses, and assets to a qualified DRO adviser is essential for a smooth application process.

While a DRO offers legal protection and a chance for financial reset, it is just one of several debt solutions available. So, exploring alternatives like Debt Management Plans, Individual Voluntary Arrangements, or bankruptcy may be necessary if you do not qualify for a DRO or if it does not suit your circumstances.

Ultimately, a DRO can provide a fresh start for your personal finances while allowing your partner to remain largely unaffected, helping both of you plan confidently for the future. 

Key Takeaways

• A Debt Relief Order (DRO) is a formal debt solution for individuals in England, Wales, and Northern Ireland with low income, few assets, and debts under £50,000. 
• DROs last for 12 months, after which qualifying debts are usually written off if your financial situation hasn’t improved. 
• A DRO affects only the individual who applies and does not automatically impact a partner’s credit score or finances. 
• Joint debts, co-signed loans, and shared accounts are the main ways a DRO can indirectly affect a partner. 
• Household finances are assessed based on your personal share of income and essential expenses, not your partner’s earnings.  
• Open communication with your partner is recommended to manage shared finances and avoid misunderstandings. 
• A DRO appears on your credit file for six years, potentially affecting your ability to get credit or loans. 
• Some debts are excluded from a DRO, including student loans, court fines, child maintenance, and certain damages. 
• Alternatives to a DRO include Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs), bankruptcy, and other regional schemes in Scotland. 
• Seeking professional advice from an approved DRO intermediary or trusted debt adviser ensures accurate application and helps identify the best debt solution for your situation. 

FAQs

Do I have to tell my partner if I get a Debt Relief Order?

You are not legally required to inform your partner about your DRO. However, it is advisable to have an open conversation about finances, especially if you share financial commitments or are planning significant joint financial decisions.

How will a DRO affect our ability to buy a home together?

If you have a DRO, it can negatively impact your credit rating and may make it more difficult to secure a mortgage. If your partner’s credit is unaffected, they may still be able to apply for a mortgage independently.