What is a Debt Relief Order?

A debt relief order (DRO) is an option that allows you to have your debts written off, if you have a low level of debt and few assets. A DRO freezes your debt payments and interest for a period of 12 months. If your financial situation hasn’t altered at the end of this time then all of the debts that were included will be written off. Debt relief orders are not available if you live in Scotland.


  • Whilst your DRO is active no repayments are made towards your debts.
  • Your creditors are unable to pursue for the debt whilst the DRO is ongoing.
  • DRO can be a cheaper option than going bankrupt if you qualify.
  • There is no need to appear in court, despite this being a legally binding agreeement.
  • The cost of the DRO can be broken down into instalments.

Important Considerations:

  • If you’re a homeowner, then you are unable to have a DRO.
  • An improvement in your circumstances could lead to the DRO failing.
  • Your name will appear on the public Insolvency Register whilst you are on the DRO.
  • The maximum debt level for a DRO is £20,000
  • It does cost £90 to have a DRO.
  • A DRO will have an impact on your credit rating