Debt Relief Orders

A Debt Relief Order (DRO) is a formal debt solution for individuals with low debts and minimal assets. It freezes payments, interest, and charges for 12 months, during which creditors cannot pursue you for payment. If your financial situation remains unchanged after this period, qualifying debts are written off. A DRO stays on your credit file for six years.

Criteria for a Debt Relief Order

To qualify for a DRO, you must:

Have £75 or less spare income per month.

Owe less than £50,000.

Not be a homeowner.

Have less than £2,000 in assets (excluding a car worth up to £4,000).

Not have had a DRO in the last six years or be in another insolvency procedure.

Have lived or worked in England, Wales, or Northern Ireland in the last three years.

How does a Debt Relief Order work?

Apply through a DRO adviser

Applications must be made through a professional DRO adviser or approved organisation.

Freeze debts

Payments, interest, and charges are frozen for 12 months, and creditors cannot take legal action against you.

Debt write-off

After 12 months, qualifying debts are written off if your financial situation hasn’t improved.

How Does A Debt Relief Order Work?

Apply Through a DRO Advisor: Applications must be made through a professional DRO adviser or approved organisation.

Freeze Debts: Payments, interest, and charges are frozen for 12 months, and creditors cannot take legal action against you.

Debt Write-Off: After 12 months, qualifying debts are written off if your financial situation hasn’t improved.

Benefits

Free to apply.

A quicker way to become debt-free (12 months).

No payments required during the DRO period.

Interest and charges are frozen.

Retain assets like a car valued under £4,000.

Considerations

Financial changes during the 12 months can revoke the DRO.

Recorded on the Individual Insolvency Register and credit file for six years.

Homeowners and those with significant assets are ineligible.

Certain debts, like court fines and student loans, are excluded.

Debts Included

Personal loans

Credit cards

Catalogues

Utility Arrears

Overdrafts

Council tax

Store Cards

Telephone and broadband bills

Debts excluded

Court fees or fines

Student loans

Social fund loans

Child maintenance/support

Tax and National
Insurance underpayments

FAQS

FAQ's

What is a DRO?

A DRO freezes payments, interest, and charges for 12 months. If your financial situation doesn’t improve, qualifying debts are written off.

Who can apply for a DRO?

Those meeting the eligibility criteria, including low income, minimal assets, and residing in England, Wales, or Northern Ireland.

How long does a DRO last?

It lasts for 12 months, after which debts are written off if your circumstances haven’t changed.

How does a DRO impact my credit?

A DRO stays on your credit file for six years, affecting your ability to borrow.

What debts are excluded from a DRO?

Excluded debts include court fines, student loans, child maintenance, and tax underpayments.

How do I apply for a DRO?

You must apply through a DRO adviser or approved organisation. Self-applications are not allowed.

How can Debt Support Service help?

Our knowledgeable team can assess the best option for you and connect you with trusted partners who can administer the arrangement.