What is a Debt Relief Order (DRO)?
A Debt Relief Order (DRO) is a low-cost formal option for people with very low debt, low income and minimal assets. It freezes your debts for 12 months — the moratorium — after which they are written off if your circumstances have not improved.
Who qualifies (England & Wales)
You must:
- Owe £30,000 or less in qualifying debts.
- Have assets worth £2,000 or less (a vehicle up to £2,000 is allowed).
- Have surplus income under £75 a month after essential bills.
- Not have had a DRO in the last six years.
- Not be a homeowner.
Cost and how to apply
A DRO costs a one-off £90 fee and must be arranged through an approved intermediary — typically a money adviser at StepChange, National Debtline or Citizens Advice. You cannot apply yourself. The fee can sometimes be paid in instalments before the DRO is granted.
What is covered
Most unsecured debts: credit cards, personal loans, overdrafts, utility arrears, council tax (past years), and benefit overpayments.
What happens after the 12-month moratorium
While the moratorium is in place, creditors listed on the DRO cannot take enforcement action, and interest and charges are frozen. After 12 months, if your situation has not improved, the debts are written off. If your income rises significantly or you acquire assets during the moratorium, the DRO can be revoked — take advice before applying.
When a DRO fits
DROs are ideal for renters on benefits or low wages with modest debts and no realistic way to repay. If your income rises or you acquire assets during the moratorium, the DRO can be revoked — take advice before applying.
Use Debtrupt's Surplus Calculator to check whether your surplus is under the £75/mo threshold, and the Options assessment to compare a DRO against bankruptcy and an IVA.
Get free help
Speak to a free debt charity such as StepChange (0800 138 1111) or National Debtline (0800 808 4000) to confirm a DRO is right for you.
England & Wales only. General information, not legal advice.