Debt solution explained

What Is a Debt Relief Order?

A Debt Relief Order, or DRO, is a way to deal with debt if you have a low income, very little spare money and few assets. It is cheaper and quicker than bankruptcy, and since 2024 there is no fee to apply. Here is how it works under the current 2026 rules.

The basics

What a DRO Does

A DRO is a formal debt solution in England and Wales, run by the Insolvency Service. It freezes the debts it covers for 12 months, during which your creditors cannot take action to recover them. If your situation has not improved by the end, the qualifying debts are written off.

You apply through an approved intermediary, usually a trained debt adviser at a charity such as Citizens Advice or StepChange, rather than on your own, and there is no charge for this. A DRO suits people who simply do not have enough income or assets to repay what they owe in a reasonable time.

DRO at a glance

Where: England & Wales
Cost: No fee (free)
Debt limit: £50,000 or less
Spare income: £75 a month or less
Savings & assets: Under £2,000
Vehicle: Up to £4,000
Homeowners: Not eligible
Length: 12 months

A quick check

Who a DRO Is for

A DRO is designed for people on a low income with little spare cash and few belongings of value. The limits are strict and are checked carefully when you apply. It may fit if most of these are true:

You live in England or Wales (Northern Ireland has its own version).
Your qualifying debts are £50,000 or less.
You have £75 a month or less spare after essential bills.
Your assets are worth under £2,000, plus a vehicle up to £4,000.
You do not own your home.
You cannot realistically repay your debts in a reasonable time.

How it compares

How a DRO Differs from an IVA

The two are often confused. A DRO costs nothing and lasts a year, but is only open to people with a low income, modest debts and no property. An IVA has no debt ceiling and lets homeowners protect their property, but it runs for years and the practitioner's fees come out of your payments.

If you qualify for a DRO it is usually the cheaper, simpler route, so it is always worth checking first. Because a DRO has to be arranged through a free approved adviser anyway, getting that advice costs you nothing. For a fuller side by side, see our DRO vs IVA comparison.

Note: DRO limits change from time to time. The figures here reflect the rules in force in 2026, and an approved adviser will confirm the current limits for your situation.

No pressure, no obligation

Not Sure Which Solution Fits?

If a DRO is not available to you, an advisor can talk through an IVA and the other routes, with no obligation.

Check your options →

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