Is a Debt Relief Order (DRO) Your Chance to Break Free from Debt?

If you’re feeling overwhelmed by debt and can barely keep up with your bills, you are not alone. Many people across England and Wales face the daily stress of small debts, no savings, and not enough income to get by. If you have reached the point where you see no way out, let me tell you: there is hope.

A Debt Relief Order, or DRO, may offer you a clean break and a way forward.

Let’s walk through what a DRO is, how it works, who qualifies, what debts it covers, how to apply, and most importantly, how you can take control of your money and your future.

What Exactly Is a Debt Relief Order?

A Debt Relief Order (DRO) is a government-backed scheme for people in England and Wales with low income, few assets, and manageable debts.

If you qualify, a DRO freezes your debts for one year. During this time, your creditors (the people or companies you owe) cannot contact you, take you to court, or add more charges to your included debts.

After 12 months, those debts are wiped away. You are released from legal responsibility for them.
You do not go to court. You do not pay anything toward these debts during the DRO year, unless your financial situation improves.

A DRO is arranged by the Official Receiver through the Insolvency Service, but you cannot apply by yourself. You need a debt adviser, called an approved intermediary, to help you with your application. Groups like Citizens Advice, StepChange, and National Debtline can help. The support is free.
There’s a one-off fee of £90 for a DRO. This is much cheaper than going bankrupt.

Who Can Get a DRO? (Check If You Qualify)

A DRO is only for people in a specific financial situation. If you tick all these boxes, you may qualify:

• You owe £30,000 or less in total eligible debts.
• Your assets are worth £2,000 or less. Assets are things you own, such as cash, jewellery, electronics, and vehicles (with some exceptions).
• Your monthly spare income is £75 or less after paying essential bills.
• You live in England or Wales.
• You have not had a DRO in the past 6 years.
• You are not currently bankrupt or in an Individual Voluntary Arrangement (IVA).
• You do not own your own home.

Let’s break those down:

“Assets” means the total value of everything you own (apart from basic items for living).

“Disposable income” is the money you have left each month after rent, utilities, food, and other essentials.

The rules are strict. If you try to hide assets or income, your DRO can be cancelled and your creditors can chase you again.

If you’re unsure, do not guess. Ask a free debt adviser to check.

What Debts Are Covered by a DRO? (And Which Are Not)

A DRO does not cover every type of debt. Here’s what you can and cannot include:

Debts You Can Include:

• Credit cards and store cards
• Overdrafts
• Payday loans
• Personal loans (unsecured)
• Rent arrears
• Utility arrears (gas, electricity, water)
• Council tax arrears
• Benefit overpayments (unless due to fraud)
• Buy-now-pay-later balances

Debts You Cannot Include:

• Secured debts (like your mortgage, or hire purchase on a car)
• Student loans
• Child maintenance or CSA arrears
• Court fines and criminal penalties
• Debts from personal injury claims
• Social Fund loans
• TV licence arrears
• Some business debts (ask your adviser for details)

Only the debts you list in your DRO are written off. You must keep paying excluded debts.

TIP: I have seen many people miss out on including a debt simply because they forgot about an old account or letter. I recommend you check your credit report before applying, so you do not accidentally leave out any debts that could be covered by your DRO.

What Are the Benefits and Risks of a DRO?

A DRO is not right for everyone. Here are the upsides and downsides in plain English:

Why a DRO Could Help You

• Debts wiped clean after one year. This is a real fresh start.
• No contact from included creditors. They must stop chasing you.
• No court appearance needed.
• Low upfront cost (£90 fee).
• Protection from enforcement. No bailiffs or new CCJs for those debts.

What You Need to Watch Out For

• Public register. Your name and DRO details appear on the Insolvency Register for 15 months. This is public information.
• Credit file impact. The DRO shows on your credit report for 6 years, making it harder to get credit, a mortgage, or even some jobs.
• Legal restrictions. You cannot borrow over £500 without telling the lender about your DRO. You also cannot be a company director.
• Not all debts covered. You must keep paying priority debts like rent, council tax, and any debts not included in your DRO.
• DRO can be cancelled. If your income rises, you inherit money, or you break the rules, your DRO may be revoked.

How Do You Apply for a DRO? Step-by-Step Support

You cannot apply for a DRO on your own. You must go through an approved intermediary (a debt adviser). Here’s how the process works:

1. Speak to an Approved Intermediary
   • Contact Citizens Advice, StepChange, National Debtline, or another charity.
   • The advice is free. They will not judge you.
2. Check Your Eligibility
   • The adviser will look at your income, debts, assets, and living situation.
3. Gather Your Documents
   • Proof of identity and address
   • Bank statements (recent)
   • Proof of income and benefits
   • A full list of creditors
4. Fill Out the DRO Application
   • Your adviser completes and submits the DRO form online for you.
   • You cannot do this part alone.
5. Pay the DRO Fee (£90)
   • This must be paid before your application is sent.
   • In some cases, you can pay in instalments. If you receive certain benefits, ask about help with the fee.
6. Wait for the Decision
   • The Insolvency Service reviews your application.
   • If approved, the 12-month moratorium begins immediately. Creditors are informed.
7. If Refused, Appeal If Needed
   • If your DRO is refused, your adviser can help you appeal within 30 days by providing more evidence.

What Happens During the 12-Month DRO Period?

Once your DRO starts, here’s what to expect:

What You Must Do

• Do not take out more than £500 in credit without telling the lender you have a DRO.
• Report changes. Tell the Insolvency Service if you get a pay rise, inheritance, or your circumstances change in a big way.
• Be honest. Do not hide or give away assets or income.
• Pay your priority and excluded debts. Keep up with rent, council tax, utilities, and any debts not included in your DRO.

What You Get

• Legal protection. Creditors listed in the DRO must leave you alone.
• No new interest or charges on those debts.
• No court cases or bailiffs for those debts.

TIP: From my experience, setting up separate reminders for priority bills like rent and council tax during your DRO year can help you avoid missing payments and stay on track.

What Could Go Wrong

• If you break the rules or your financial situation improves a lot, your DRO can be cancelled.
• If you get money or assets above the limits, you must report this.

What Happens After the 12 Months?

If you stick to the rules, here’s what happens when your DRO period ends:

• All debts included in the DRO are legally written off. You do not have to repay them.
• You do not have to reapply. The write-off is automatic after 12 months.
• Restrictions end. The credit borrowing and company director bans are lifted. However, your credit report will show the DRO for a total of six years from the start date.
• Your name comes off the public register after 15 months.
• If credit agencies do not remove the DRO after six years, you have the right to ask for it to be deleted.

What If a DRO Is Not Right for You? (Alternatives to Consider)

Not everyone will qualify for a DRO, and sometimes it is not the best solution. Here are other options to look at:

• Bankruptcy: This is available to people with higher debts or assets. It costs more (£680+), and has bigger consequences for your future finances.
• Individual Voluntary Arrangement (IVA): You pay a share of your debts over five or six years, often with some debt written off at the end. You need some income to offer.
• Debt Management Plan (DMP): An informal agreement to pay your debts at a rate you can afford. This is not legally binding, but many creditors will agree.
• Debt consolidation loan: This is only for people with better credit and some spare income. It combines all your debts into one payment.

Always get free, independent advice before making a choice. There is no shame in asking for help.

Where to Get Trusted Help and Start Your Application

You do not have to face this alone. If you are struggling with debt, contact one of these free, approved services:

• Citizens Advice – local offices and online advice
• National Debtline – advice and support online or by phone
• StepChange Debt Charity – online chat and applications

You can also check the Insolvency Service website for the latest guidance.

You cannot submit a DRO application yourself.
Always use an approved intermediary. They are there to help, not judge.

Bringing Debt Relief Orders and Your Next Steps Together

If you are feeling weighed down by debt, a Debt Relief Order could give you the breathing space you need to reset your finances. You must meet strict rules, list all your eligible debts, and be open about your situation. For one year, your included debts are frozen—and after that, they are wiped away.

Your credit record will show the DRO for six years, and you will need to keep up with any debts not covered. But for many people, this is a chance to take back control, make a fresh start, and build a better future.

Action Steps:

• Make a list of all your debts and income.
• Contact a free debt advice service, don’t wait.
• Gather your documents and be open about your situation.
• Ask if a DRO is right for you, or if there are other options.
• Take each step as it comes.

Remember, needing help is never a failure. Every action you take moves you closer to freedom and control over your money.

You have the strength to do this. Reach out today and take that first step to a new financial future.