What is a Debt Relief Order?

A Debt Relief Order (DRO) stops most creditors from taking further action against you for 12 months. It is for personal debts of up to £50,000 that you cannot pay. 

For debts included in a DRO, during this time:  

• you will not pay back what you owe 
• interest and charges will stop being added to your debts 
• you will not have to deal with the people you owe money to. 

These protections will stay in place if you continue to meet DRO qualifying rules during the 12-month period. If your finances do not get better after the 12 months the debt will be written off. 

Do I qualify for a Debt Relief Order?

To qualify for a DRO, you must: 

• be unable to pay your debts 
• owe less than £50,000 in total 
• have savings or valuable items worth less than £2,000 in total 
• own a vehicle worth less than £4,000 (if you were to sell it today) 
• have £75 a month or less at the end of the month to make your debt repayments 
• have lived or worked in England and Wales in the last 3 years 
• have not had a DRO in the last 6 years. 

What debts can I include?

You can include most types of debt in your application. The total of your debts can be no more than the £50,000 limit.  

Debts that can be included in a DRO are called ‘qualifying debts’. 

They include: 

• credit cards 
• overdrafts and loans 
• rent arrears and utilities (gas, electricity, telephone) 
• council tax and income tax 
• buy now, pay later agreements 
• benefit overpayments 
• debts to friends and family. 

Once your DRO is approved, you will usually no longer have to pay the debts (and interest) listed in the DRO anymore. 

What debts do I still need to pay?

There are some types of debts that cannot be included in a DRO.  

You’ll still have to pay: 

• child maintenance or anything you owe under family proceedings 
• student loans 
• budgeting and crisis loans from the Social Fund 
• debts secured against any possessions you own 
• damages or fines a court has ordered you to pay 
• unpaid TV licence fees 

Applying for a Debt Relief Order

You must contact an approved debt advice provider, like us, to apply for a DRO. It is free to get help and speak with a debt adviser. 

If you think that a DRO is the best option for you, contact us for more advice. If we agree that it is suitable for you, we can explain how to apply.