Debt Relief Order (DRO) - Complete UK Guide 2026
A Debt Relief Order (DRO) is a formal insolvency option for people in England and Wales who cannot afford to repay qualifying debts and meet strict income, asset, and debt limits. A DRO normally lasts 12 months; if it completes, the qualifying debts listed in it are written off.
What is a Debt Relief Order?
According to GOV.UK, a Debt Relief Order is designed for people who cannot pay their debts and meet the eligibility rules. Unlike bankruptcy, which currently has an application fee, a DRO has no application fee and is specifically designed for those with:
- Low income with minimal surplus each month
- Few assets worth less than £2,000
- Debts up to £50,000 (increased from £30,000 in 2024)
- No homeownership or significant property
How DROs Work: The Complete Process
When you’re granted a DRO, you enter a 12-month protection period during which:
- All qualifying debts are frozen - no interest or charges can be added
- Creditors cannot contact you or take legal action to recover debts
- No payments are required during the 12-month period
- After the DRO period, qualifying debts listed in the DRO are written off
- Some debts remain excluded, so check the rules before applying
2024 Eligibility Changes: What’s New
According to the current GOV.UK guidance for debt advisers, the government expanded DRO eligibility in June 2024:
Complete DRO Eligibility Criteria
Financial Requirements:
Residency & Legal Requirements:
DRO vs IVA vs Bankruptcy: Complete Comparison
If you are choosing specifically between a Debt Relief Order and an IVA, read the dedicated IVA vs DRO comparison as well as the summary below.
Debt Relief Order (DRO)
Individual Voluntary Arrangement
Bankruptcy
Take Action: Is a DRO Right for You?
A Debt Relief Order can be suitable for people with unmanageable qualifying debts, limited income, and few assets. With the 2024 changes expanding eligibility to debts up to £50,000, more people can now ask an approved debt adviser to assess whether a DRO fits.
Your Next Steps:
- Use our IVA calculator to compare whether an IVA may fit
- Individual Voluntary Arrangement guide - For higher income and debt levels above DRO limits
- Compare IVA vs DRO to understand the key eligibility and cost differences
- Debt Management Plan information - Informal alternative if you don’t qualify for DRO
- Learn about council tax debt relief if this is a major concern
- Contact a free debt advice service to discuss your specific situation
Struggling with Debt Under £50,000?
Get free, confidential advice on whether a Debt Relief Order or another option may fit your circumstances.
Check Your Debt Solution OptionsSummary: Debt Relief Orders in 2026
A Debt Relief Order is a formal option for people with low income, limited assets and qualifying debts. The 2024 changes increased the debt limit to £50,000, but every eligibility condition still needs to be checked by an approved intermediary.
Key Takeaways:
- Qualifying debt write-off after the DRO period if the DRO completes
- Eligibility expanded to debts up to £50,000 in 2024
- A 12-month moratorium usually applies, with qualifying listed debts written off at the end if the DRO is not revoked
- Insolvency restrictions apply, and employment or professional rules should be checked
- Credit impact lasts 6 years from approval, so rebuilding takes time
If you’re struggling with debt under £50,000, have limited income and few assets, speak with an approved debt adviser to check whether a DRO or another option is suitable.
Frequently Asked Questions
Who qualifies for a DRO?
A DRO may fit someone in England or Wales who owes no more than £50,000, has low spare income, does not own their home and meets the asset rules.
Does a DRO write off all debts?
No. A DRO can write off qualifying listed debts after the DRO period if it completes. Excluded debts such as student loans or court fines remain payable.
Is there a DRO application fee?
GOV.UK says there is no application fee for a Debt Relief Order. You must apply through an approved debt adviser or intermediary.
Sources checked
- GOV.UK Debt Relief Orders for DRO eligibility and restriction rules.
- GOV.UK DRO guidance for debt advisers for detailed intermediary guidance.
- GOV.UK options for dealing with your debts for comparison with other debt solutions.
- MoneyHelper debt guidance for free, independent debt advice signposting.
This guide was checked against Insolvency Service and GOV.UK guidance on 11 July 2026.
Reviewed by IVA Online’s debt research team. For personalised advice, consult a debt adviser or licensed Insolvency Practitioner.