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Debt relief order (DRO)

A debt relief order (DRO) is a way of writing off debt if you cannot pay what you owe. You don’t have to pay a fee, and you will not have to deal with the people you owe (creditors).

Get online debt advice to find out if a DRO is right for you

  England, Wales and Northern Ireland

A debt relief order is a way of writing off your debts if your finances do not get better after 12 months.  

During this time, you will not pay back what you owe. Interest and charges will stop being added to your debts. You do not have to deal with the people you owe money to.

With over 30 years’ experience offering free debt help, we will work with you to see if a DRO is the right solution for you. We will also consider a wide range of other solutions that could be suitable for your situation.

Is a DRO right for me?

DROs are not right for everybody. There are rules about who can apply for one, based on how much you owe and how much money you have coming in. We can help you find out if you can get a DRO through online debt advice.

If a DRO is right for you, an ‘approved intermediary’ will let you know what you need to do. An approved intermediary is an organisation that deals with DRO applications.

Debt free after 12 months

If your finances don’t get better after 12 months of being on a DRO, your debts will be written off.

No fees to pay

It is free to apply for a DRO and we do not charge any fees for our advice.

You are protected from creditors

While you are on a DRO, creditors must stop all collections activity. They are not allowed to add interest and charges and cannot take further action against you.

An approved intermediary manages your application

Take the stress out of dealing with your debt. StepChange will help you find out if a DRO is right for you, and your case will be passed to an approved intermediary to deal with the application process. You will not have to go to court.

A cheaper alternative to bankruptcy

DROs are for people who are on a low income and have few assets (items of value). If you meet the criteria, it can be a cheaper alternative to bankruptcy.

You cannot get a debt relief order if you live in Scotland. The Minimal Assets Process (MAP) bankruptcy is similar. Find out how MAP bankruptcy works.

Benefits of an approved DRO

  • Creditors will stop collections activity. They cannot take further action, like court action
  • Most debts will be written off after 12 months. Unless your financial situation improves during this time
  • Interest and charges will stop. These can be put back on your debts if your DRO fails
  • Your approved intermediary will send your application for you. This means you do not have to go to court
  • You may be able to keep your household goods. Whether you get to keep them depends on the value of those items
  • There is no fee to apply for a DRO. You will not have to pay anything if you get free advice from an organisation like StepChange

Risks of an approved DRO

  • Your DRO will show on a public register. This will last for 15 months
  • A DRO stays on your credit file for six years after it starts. This could make it harder to get credit in the future
  • Your DRO could be cancelled if your finances get better during the 'moratorium period'. This lasts for 12 months after your DRO is approved. Your creditors may then ask you to pay them back and add interest and charges to what you owe
  • Your DRO could be cancelled if you break the rules of your DRO. You will be told what these rules are
  • Some items of value (assets) may be at risk of being used against the DRO. This depends on the value of the asset

Ready to find out if a DRO is right for you?

Use our online debt advice service to find out what options you have for dealing with your debt. Start, pause and pick up again in your own time.

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There is no impact on your credit score

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How can I find out if a DRO is right for me?

  1. To find out if a DRO is right for you, you will need to start by using our online debt advice tool
  2. We need to learn more about you to give you advice. Through our online tool, we will ask you for details about yourself and your situation. This includes basic information about you, as well as information about your income, spending and debts. This can be a long process, but you can pause and come back at any time
  3. From the information you gave us, we will give you options on the best ways to deal with your debt. Make sure you read this through before making your choice. You may even be able to apply for Breathing Space. This will give you a break from having to worry about your debts while you complete your advice
  4. If a DRO is right for you, you will need to find an ‘approved intermediary’ to manage your application. We can help you find an approved intermediary
  5. Your approved intermediary will work with you to create your application and will let you know what the next steps are

What people ask us about DROs

To apply for a DRO, you must:

  • Live in England, Wales or Northern Ireland
  • Owe less than £50,000
  • Have less than £2,000 in assets and a car worth no more than £4,000
  • Have less than £75 in surplus income per month after paying your household bills and living costs

A DRO stays on your credit file for six years after it starts. This could make it harder to get credit in the future.

It will also be kept on a public register for 15 months. This is online for anyone to view. It may also affect your credit file. 

There is no fee. You can submit your DRO application to the Insolvency Service for free.

You cannot get a DRO if you are a homeowner. Even if the property is in negative equity.

If your IVA is cancelled, you can start looking into other solutions like a DRO.

If you are on an active IVA and want to change to a DRO, speak with your Insolvency Practitioner. They will talk you through your IVA if it is not working for you.

When your application is finished, the intermediary will submit it to the Insolvency Service.

Find out more about getting a debt relief order

Most debts are written off by a DRO but there are some that cannot be. Like TV licence arrears and criminal fines. These will still need to be paid.

Find out more about what happens on a debt relief order

Our DRO guides

Our DRO guides have practical advice about the whole process.

What is a DRO?

Find out how assets affect a DRO, and what debts can and cannot be included.

How will a DRO affect me?

Learn more about what happens on a DRO and after your DRO ends. We can explain the what the DRO moratorium period is, and what your creditors can and cannot do.

Getting a DRO

Find out if you qualify for a DRO, and how you can apply.

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