What is a debt relief order (DRO)?

To apply for a DRO you need to meet the following criteria:

• You need to reside in England. Wales or Northern Ireland, or have done business in one of these countries in the last three years
• Your debts add up to less than £30,000 (£20,000 in Northern Ireland)
• You’re not a homeowner
• Your assets are worth less than £2,000 (£1,000 in Northern Ireland) – though you can own a motor vehicle worth up to £2,000 in addition to this (£1,000 in Northern Ireland)
• You have less than £75 a month left over after you’ve paid all of your living costs (£50 in Northern Ireland)

Read our guide to find out if you qualify for a DRO.

You need to apply for a DRO through one of the organisations approved by the Insolvency Service.

If your DRO is approved, payments to your debts are put on hold for 12 months and your creditors cannot take any action to collect the debts during this time, although interest and charges can still be added. If after the 12 months your circumstances haven't improved, then all of your debts included in the DRO are written off.

If during the 12 month period your DRO is cancelled (revoked), your creditors can pursue the debt again, with interest and charges added. You would then need to consider what other repayment options are available to you.

Your DRO be recorded on your credit file for six years from the date it's approved.

A DRO costs £90. You pay the fee directly to the Insolvency Service and you can’t submit your DRO application until the fee is completely paid.