Debt Relief Order

Debt relief order.

A Debt Relief Order (DRO) is a formal insolvency solution designed to help individuals who are in significant debt and have limited means to repay it. It is a legally binding agreement that provides temporary relief from creditors and can lead to the discharge of qualifying debts after a specified period, usually 12 months.

A DRO is suitable for individuals with low income, minimal assets, and debts below a certain threshold. It allows you to freeze your debts and make no payments towards them during the DRO period. After the DRO is approved, your creditors are prohibited from taking further legal action or contacting you regarding the included debts.

It provides a fresh start by clearing eligible debts at the end of the DRO period, offering a more manageable path to financial recovery. A DRO is a regulated and responsible solution for individuals facing severe financial difficulties and can provide the necessary breathing space to rebuild their financial stability.

If you don’t own your own home & have little spare income and debts that are less than £30,000 a Debt Relief Order (DRO) could be a way to deal with your debts. It is an alternative debt solution to Bankruptcy or an Individual Voluntary Arrangement and available to residents of England, Wales and Northern Ireland.


Typically a Debt Relief Order lasts twelve months.

Debt Relief Orders don’t require you to make payments into them.

Creditors are stopped from taking any further action against you.

There is a small fee of £90 for starting a Debt Relief Order that can be paid in instalments.

A Debt Relief Order is relatively simple process to start and can be done through various charity organisations.


Your credit rating will be affected for six years.

Owning your own property or having assets over £2,000 will stop you entering into a Debt Relief Order.

Entering into a DRO will be recorded on a public register.

A Debt Relief Order may be cancelled if you do not comply or if your circumstances change during the the 12 month period, for example if you’re able to make payments towards you debt(s).

If you can afford more than £75 after your monthly essentials have been budgeted for then you will not qualify.