A Debt Relief Order (DRO) is a formal insolvency procedure for individuals in England and Wales who have a low income, minimal assets, and a manageable level of debt. It is a legal process that can provide a "fresh start" by writing off qualifying debts after a 12-month period, but it is subject to strict eligibility criteria and carries significant long-term implications.
A Debt Relief Order is a formal insolvency procedure subject to strict eligibility criteria. It stays on your credit file for six years and certain restrictions apply during the 12-month period. Applications must be made through an approved debt adviser — you cannot apply directly. Always seek free, independent advice before proceeding.
A Debt Relief Order (DRO) is a formal debt solution designed for people who have relatively low assets, limited disposable income and qualifying debts below the current DRO debt limit.
During the 12-month DRO period:
If the DRO is not revoked and you continue to meet the relevant conditions, the qualifying debts included in the order are discharged at the end of the 12-month period.
One of the most important questions is: "Do I qualify for a Debt Relief Order?" You generally need to meet several conditions.
| Requirement | Current rule |
|---|---|
| Total qualifying debts | Less than £50,000 |
| Monthly surplus income | Less than £75 |
| Assets | Less than £2,000 |
| Vehicle | Less than £4,000 |
| Location | England & Wales |
| Previous DRO | No DRO within the last 6 years |
| Home ownership | You cannot own your home |
You must also be unable to pay your debts and must not currently be subject to certain other formal insolvency procedures.
⚠️ Important: Meeting one condition does not automatically mean you qualify. An approved debt adviser needs to assess your circumstances before a DRO application can be submitted.
Under the current rules, you generally need to have less than £50,000 of qualifying debt to be eligible for a DRO. Your debts may include certain:
Not every type of debt is included in a DRO. Some debts, such as certain student loans and court fines, remain payable.
Your monthly surplus income is also important. Generally, you must have less than £75 per month left after allowable household expenses. This isn't simply your salary — an approved intermediary considers your income alongside your normal household expenditure to determine whether you meet the relevant criteria.
| Example | Amount |
|---|---|
| Monthly income | £1,500 |
| Essential household expenses | £1,450 |
| Remaining income | £50 |
This is only an illustration. Your actual assessment depends on your individual circumstances and the information provided in your application.
Your assets are another important part of the eligibility assessment. Generally, your total assets must be worth less than £2,000. A vehicle is treated separately, with a current value limit of less than £4,000 for the standard vehicle allowance. You also cannot own your home.
Because asset rules can be complicated, don't assume that an item automatically counts or doesn't count. An approved intermediary will assess your circumstances.
If you're searching for "how to apply for a Debt Relief Order", there is an important point to understand: you cannot apply for a DRO yourself. You must apply through an approved debt adviser, who checks your circumstances and completes the application if a DRO is appropriate. There is currently no application fee for a DRO.
You cannot simply download and complete a DRO application yourself. A Debt Relief Order application must be completed through an approved debt adviser. The adviser assesses your financial circumstances and submits the application if a DRO is suitable.
So if you're looking for a DRO application form, the first step is not filling out a form yourself — it's getting an eligibility assessment from an approved adviser.
Get free guidance on DRO eligibility and explore all your available options — no obligation.
Get Guidance on Your OptionsA DRO can cover certain qualifying debts, but not every debt is automatically included. Depending on your circumstances, qualifying debts can include things such as:
Some debts are excluded. For example, GOV.UK states that certain student loans and court fines remain payable. Always obtain professional advice about your specific debts before making a decision.
A DRO isn't the only way of dealing with problem debt.
| Solution | Generally suitable for |
|---|---|
| DRO | People meeting strict low-income, low-asset and debt criteria |
| IVA | People who may be able to make an agreed payment towards debts |
| DMP | People who may be able to repay debts through an informal arrangement |
| Bankruptcy | People with more complex or substantial financial circumstances |
Potential advantages
Potential disadvantages
A DRO may be worth exploring if:
But only an eligibility assessment can determine whether a DRO is appropriate for your circumstances. If you don't qualify, other debt solutions may be available.
Debt Free Path is an information and support platform, not a debt advice firm. We provide straightforward information about debt solutions so you can understand:
If you're struggling with debt, we encourage you to seek appropriate professional advice before making a decision about a formal debt solution.
A Debt Relief Order is a formal debt solution for eligible people with relatively low assets, limited disposable income and qualifying debts below the current DRO limit.
You generally need to owe less than £50,000 in qualifying debts.
You generally need to have less than £75 per month in surplus income after allowable household expenses.
No. You must apply through an approved debt adviser.
No. There is currently no application fee for a DRO.
A DRO normally lasts 12 months.
A DRO stays on your credit reference file for six years from approval.
Potentially. The current standard vehicle value limit is less than £4,000, subject to the applicable rules.
Generally, no. Homeowners are not normally eligible for a DRO.
Get free guidance on DRO eligibility and explore all your available options — no obligation.
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