- Debt limit
- Up to £50,000
- Surplus income
- £75 a month or less
- Assets
- Up to £2,000, plus a vehicle worth up to £4,000
- Cost and length
- No application fee, lasts 12 months
On this page
What is a debt relief order?
A debt relief order (DRO) is a form of insolvency for people with low debts, little spare income and few assets. For 12 months, creditors included in the order cannot chase you for those debts. At the end, if your circumstances have not improved, the debts in the order are written off.
DROs are available in England, Wales and Northern Ireland. Scotland has a similar low-cost route in the Minimal Asset Process, covered in our Scottish debt solutions guide.
Who can get a DRO?
- You owe £50,000 or less in qualifying debts.
- You have £75 a month or less of surplus income after reasonable living costs.
- Your assets are worth £2,000 or less, not counting household goods and tools for work.
- You can have one vehicle worth up to £4,000, in addition to that.
- You do not own your home.
- You are not already in another insolvency solution, such as bankruptcy or an IVA, and you have not had a DRO in the last six years.
- You live in, or have a recent connection with, England, Wales or Northern Ireland.
These limits were raised in June 2024 and the £90 application fee was abolished in April 2024. A government review published in July 2026 confirmed the changes widened access. Limits can change, so check with an adviser.
Talk to a free adviser first
An adviser can look at your whole budget, deal with creditors for you and explain which option suits you. Get free debt advice.
What does it cost?
Nothing to apply. The fee was abolished on 6 April 2024, and the approved intermediary who helps you apply is a free debt adviser. Be wary of anyone who asks you to pay to arrange a DRO.
How to apply
You cannot apply on your own. You need an approved intermediary, which is a debt adviser authorised by the Insolvency Service, such as a debt charity. They check you are eligible, complete the application with you and submit it online to the Official Receiver. If it is accepted, the order starts straight away.
Start with StepChange, National Debtline, Citizens Advice or MoneyHelper.
Which debts are included?
Most unsecured debts can be included, such as credit cards, loans, overdrafts, catalogue debts, utility and rent arrears, council tax arrears and tax debts. Some debts are not written off, including court fines, child maintenance, and student loans. You must include all your qualifying debts, and you cannot leave one out to stay under the limit.
During the 12 months
- Creditors included in the order cannot take action to collect those debts.
- You must tell the Official Receiver if your income or assets increase, or you receive a large sum, as the order may be extended or revoked.
- You must not borrow more than £500 without telling the lender about the DRO.
- Your name appears on the public Individual Insolvency Register.
Effects on you
A DRO stays on your credit file for six years from the start date, and your entry on the Individual Insolvency Register is removed about three months after it ends. There are some limits on holding certain roles, such as running a company, during the order. Most jobs are unaffected, but check with your employer or professional body if you work in finance or law.
If a DRO is not right
- A debt management plan if you can pay something but want flexibility.
- An IVA if you have a regular surplus and larger debts.
- Bankruptcy if your debts or assets are above the DRO limits.
- Breathing Space for 60 days of protection while you decide.
Frequently asked questions
Is a DRO the same as bankruptcy?
No. A DRO is a cheaper, simpler process for people with low debts and few assets, and it does not involve the court. Both are forms of insolvency and both affect your credit file.
Can I get a DRO if I rent?
Yes. You must not own your home, so renters can qualify.
Can I get a DRO if I have a car?
Yes, if it is worth £4,000 or less. A more valuable car counts as an asset.
What happens if my income rises during the DRO?
If your surplus income rises above the limit, or you receive a lump sum, you must tell the Official Receiver. The order could be extended or revoked.
Can creditors object to a DRO?
Creditors can raise concerns within the first 12 months, and the Official Receiver can look into them, but it is rare for an order to be revoked if you were honest on your application.
This guide gives general information and is not personal advice. Rules and limits change, so check with a free adviser before acting. Last reviewed 11 November 2026.