Debt relief orders (DROs): who can get one and how they work

What a debt relief order is

A debt relief order is one of the formal ways to deal with debts you cannot pay. It is run by the Insolvency Service, the government agency that handles debt relief orders.

If you are approved, you stop making payments towards the debts listed in the DRO, and interest on them stops too. A DRO normally lasts 12 months. At the end of that time, you will not have to pay those debts at all.

It is meant for people whose debts are fairly low, who do not own their home and who have little income or few belongings that could go towards repaying what they owe. A DRO is only available if you live in England or Wales.

Who can get one

A debt adviser will check all of these for you. According to GOV.UK, you can usually get a DRO if:

• you owe less than £50,000 in total;
• you have less than £75 a month spare income;
• your savings and valuable items are worth less than £2,000 in total;
• you do not own a vehicle worth £4,000 or more;
• you have lived or worked in England or Wales in the last 3 years;
• you are not bankrupt, and do not have an interim order or an individual voluntary arrangement (IVA);
• you have not had a DRO in the last 6 years.

The adviser also looks at payments you have made to the people you owe over the past 2 years, and at anything valuable you have sold or given away in that time. Paying one creditor ahead of the others, or selling something for less than it is worth, can affect whether you qualify. Tell your adviser about these honestly and they will explain what it means for you.

Do not worry if you are not sure exactly what you owe or what you spend each month. Working that out is part of what the debt adviser does.

Which debts a DRO covers

Debts that can go into a DRO are called qualifying debts. They include:

• credit cards, overdrafts and loans;
• rent arrears;
• gas, electricity and phone bill arrears;
• council tax and income tax;
• buy now pay later agreements;
• benefit overpayments;
• money owed to friends and family.

Some debts cannot be included, so you will still have to pay them. These are child maintenance and anything you owe under family proceedings, student loans, budgeting and crisis loans from the Social Fund, debts secured against something you own, damages a court has ordered you to pay for personal injury or death, and unpaid TV licence fees.

A DRO does not stop your everyday bills either. You still need to keep up with your rent and regular bills during the 12 months. If you are not sure which bills matter most, our guide to which bills to pay first explains how priority debts work.

How to get a debt relief order

1. Talk to a free debt adviser Only an approved debt adviser can apply for a DRO. Free services such as National Debtline and Citizens Advice can help, and MoneyHelper lists other free advice services. Talking to an adviser is free and confidential.
2. Go through your situation together The adviser works out your total debt, the value of what you own and how much money you have left each month. If a DRO is not right for you, they will help you find another way to deal with your debts.
3. The adviser applies for you If you qualify, the adviser completes the application online and sends it to the Insolvency Service. You cannot fill it in yourself, there is no fee and you do not have to go to court.
4. Your DRO is made If your application is accepted, the Insolvency Service confirms your DRO, explains the rules you must follow, tells the creditors listed in it, and adds your DRO to the Individual Insolvency Register.

During the 12 months

The 12 months is called the DRO period. Creditors listed in your DRO cannot ask you for payment during it. They can still send you statements and general letters. If one asks you to pay, tell them about your DRO and speak to your debt adviser.

A DRO is based on your circumstances when you apply. If your regular income goes up, or you receive money or something valuable, such as property or a vehicle, you must tell the Insolvency Service. It will look at how the change affects your DRO, which can be cancelled if your financial circumstances change. Your debt adviser can tell you what a change is likely to mean.

In some cases the DRO period can be extended, for example if you do not follow the rules.

The rules you must follow

While you have a DRO, you must:

• tell the lender about your DRO before borrowing more than £500, on your own or with someone else;
• tell the bank or building society about your DRO if you apply for an overdraft or a new account;
• not write cheques when you do not have enough money to cover them;
• not act as a company director, or create, manage or promote a company, without the court’s permission;
• not run a business under a different name without telling the people you do business with about your DRO.

Breaking these rules can lead to prosecution. Creditors can also ask the Insolvency Service to investigate if they believe you made your debts worse before applying or acted dishonestly. If that happens, a debt relief restrictions order can extend the rules for between 2 and 15 years. If you are unsure about any rule, ask your debt adviser or the Insolvency Service.

Your credit file and the insolvency register

A DRO is added to your credit file and usually stays there for 6 years from the date it was approved. That is the same as other debt solutions, and the same as a missed payment default. Our guide to what lenders can see on your credit file explains more.

Your DRO also appears on the Individual Insolvency Register, which you can search on GOV.UK. It is removed from the register 3 months after your DRO ends. You can use the register to check the date your DRO ends.

You cannot apply for another DRO for 6 years from the date your DRO is approved.

When your DRO ends

At the end of the DRO period, the rules stop applying and you do not have to pay the debts or interest listed in it.

Keep all your DRO paperwork, including the official document saying your DRO has ended. If you apply for credit later, or need to correct your credit file, you may be asked for proof.

If you paid the old DRO fee

A DRO used to cost £90. The fee was scrapped in 2024, so a DRO is now free. If you paid the fee between 2016 and April 2024 but never completed your application, the Insolvency Service wants to refund you. Our news story on DRO fee refunds explains how to claim.

Common questions

How much does a debt relief order cost?

Nothing. There is no application fee, and advice from free debt advice services is free too. Be wary of anyone who asks you to pay to set one up.

Can I apply for a DRO myself?

No. An approved debt adviser has to check you qualify and complete the application for you. Free services such as National Debtline and Citizens Advice can do this.

How long does a DRO stay on my credit file?

Usually 6 years from the date it was approved, the same as other debt solutions. It is removed from the Individual Insolvency Register 3 months after the DRO ends.

Do I still have to pay rent and bills during a DRO?

Yes. A DRO only covers the debts listed in it. You need to keep paying your rent and regular bills, and any debts a DRO cannot include, such as student loans or child maintenance.

Can I get a DRO in Scotland or Northern Ireland?

No. This DRO is only for people in England and Wales. If you live in Scotland or Northern Ireland, a free debt adviser can explain the options available to you there.

What happens if my income goes up during a DRO?

You must tell the Insolvency Service about any increase in your regular income, or money or valuable things you receive. It will reassess your DRO, which can be cancelled if your circumstances change. Ask your debt adviser what it is likely to mean for you.

Sources

Every fact in this page was checked against these official sources on 5 November 2026.

1. How to get a Debt Relief Order (DRO) Insolvency Service
2. Options for dealing with your debts: Debt Relief Orders GOV.UK
3. Customers urged to claim debt relief order refund from the Insolvency Service before the end of the year Insolvency Service
4. Search the bankruptcy and insolvency register GOV.UK

Written and fact-checked by the PiggyBank editorial team. Last reviewed 5 November 2026. This guide is general information, not financial advice. How we write and check our guides.