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 Insolvency Service announcements, the government significantly expanded DRO eligibility in June 2024 to help more people access debt relief:
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 see if you qualify for alternative debt solutions
- 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
Debt Relief Orders remain the UK’s most accessible debt solution for people with low incomes and limited assets. The 2024 expansion to £50,000 debt limit has made DROs available to thousands more people struggling with unmanageable debt.
Key Takeaways:
- Qualifying debt write-off after the DRO period if the DRO completes
- Eligibility expanded to debts up to £50,000 in 2024
- Over 250,000 people have successfully used DROs since 2008
- Minimal employment impact compared to other insolvency options
- 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 less 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 compiled from official government sources including the Insolvency Service and gov.uk. Last reviewed: April 2026. Statistics current as of Q4 2024.
Reviewed by IVA Online’s debt research team. For personalised advice, consult a debt adviser or licensed Insolvency Practitioner.