Debt Relief Order (DRO) UK — Am I Eligible?
A formal solution for people with low debt, low income and few assets. It freezes your debts for 12 months — if your situation hasn't improved, they're written off. Cheaper and simpler than bankruptcy.
Debtrupt's UK bankruptcy filing tools are designed for residents of England & Wales. If you live in Scotland, see Sequestration; in Northern Ireland, contact Debt NI — and speak to a local adviser before relying on any output here.
What is a DRO?
A Debt Relief Order (DRO) is a formal, court-free debt solution for people with low debt, low income and few assets. It is granted by the Insolvency Service and supervised by an approved intermediary — usually a debt charity adviser.
Once granted, a DRO places a 12-month "moratorium" on your qualifying debts: creditors cannot pursue you, and interest and charges are frozen. If your situation has not improved by the end of the 12 months, the debts are written off.
It costs a single £90 fee (which can be paid in instalments before you apply) — much less than the £680 bankruptcy fee — and there is no court hearing.
Eligibility criteria
Indicative criteria for a DRO in England & Wales.
- Qualifying debts under £30,000 in total
- Surplus income under £75 a month
- Assets worth under £2,000 (plus a vehicle up to £4,000)
- Unable to pay your debts
- Not had a DRO in the last 6 years
- Resident in England, Wales or Northern Ireland
A DRO vs bankruptcy
How a DRO compares to bankruptcy, side by side.
- Cheaper — £90 one-off fee vs £680 for bankruptcy
- 12-month freeze then write-off, with no ongoing payments
- No Income Payment Agreement (your surplus is too low)
- Simpler, court-free process
- You keep essential household goods and a modest car
- Strict limits — only for very low debt, income and assets
- Cannot own assets above the threshold (bankruptcy allows some exempt assets)
- Stays on your credit file for 6 years, like bankruptcy
- Creditors can apply to end the DRO if your circumstances improve
- Excludes some debts (student loans, court fines) — like bankruptcy
a DRO — your questions
What is a Debt Relief Order?
A formal UK solution that freezes qualifying debts for 12 months. If your situation has not improved by the end, the debts are written off. It is designed for people with low debt, low income and few assets.
Am I eligible for a DRO?
Usually yes if your qualifying debts are under £30,000, your surplus income is under £75 a month, your assets are under £2,000 (plus a car up to £4,000), and you have not had a DRO in the last 6 years.
How much does a DRO cost?
A single £90 fee paid to an approved intermediary, which can be paid in instalments before you submit the application. That is much cheaper than the £680 bankruptcy fee.
DRO or bankruptcy — which is right for me?
A DRO fits very low debt, income and asset cases with little or no surplus. Bankruptcy suits larger debts, or where a DRO is not available, and discharges most debts in 12 months — though it may require surplus payments for up to 3 years.
Will a DRO write off all my debts?
Most unsecured debts are included, but some are excluded — student loans, court fines and penalties, child maintenance arrears and fraud-related debts — just like in bankruptcy. These still have to be paid.
Not sure which fits you?
Run our free surplus calculator, then compare all four options side by side.
See if a DRO is right for you
Our free assessment takes 5 minutes, needs no paperwork, and shows your best route out of debt — private and with no judgement.