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Debt Relief Order (DRO) - Complete UK Guide 2025

A Debt Relief Order (DRO) is the UK’s most accessible debt solution for people with low incomes and minimal assets. Since 2008, over 250,000 people have used DROs to write off their debts completely, providing a fresh financial start when other debt solutions aren’t viable.

250,000+
People helped since 2008
£50,000
New debt limit from 2024
12 months
Standard DRO duration
100%
Debt write-off after completion

What is a Debt Relief Order?

A Debt Relief Order is a government-backed debt solution designed specifically for people who cannot afford other formal insolvency procedures. Unlike bankruptcy, which costs £680, a DRO costs just £90 and is specifically designed for those with:

  • Low income with minimal surplus each month
  • Few assets worth less than £2,000
  • Debts under £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:

  1. All qualifying debts are frozen - no interest or charges can be added
  2. Creditors cannot contact you or take legal action to recover debts
  3. No payments are required during the 12-month period
  4. After 12 months, all qualifying debts are completely written off
  5. You get a fresh start with no remaining obligations to included creditors

2024 Eligibility Changes: What’s New

The government significantly expanded DRO eligibility in 2024 to help more people access debt relief:

£50,000
New Debt Limit
Up from £30,000
£2,000
Asset Limit
Remains unchanged
£75
Monthly Surplus Limit
After essential costs
£90
Application Fee
One-time cost

Complete DRO Eligibility Criteria

Financial Requirements:

✓
Total debts must be £50,000 or less (increased from £30,000 in 2024)
✓
Monthly surplus income of £75 or less after essential expenses
✓
Assets worth £2,000 or less (excluding basic household items)
✓
Vehicle worth £2,000 or less (if you own one)

Residency & Legal Requirements:

✓
Resident in England or Wales (Scotland has different system)
✓
Haven't had a DRO in the previous 6 years
✓
Not currently subject to another formal insolvency procedure
✓
Not a homeowner (or own less than £1,000 equity)

DRO vs IVA vs Bankruptcy: Complete Comparison

Debt Relief Order (DRO)

Fastest & Cheapest
Debt Write-off 100% after 12 months
Cost £90 one-time fee
Duration 12 months
Debt Limit Up to £50,000
Asset Limit Under £2,000
Income Requirement Low income only

Individual Voluntary Arrangement

Most Popular
Debt Write-off 30-70% typically
Cost Fees from payments
Duration 5-6 years
Debt Limit Usually £6,000+
Asset Protection Keep home and car
Income Requirement £80+ monthly surplus

Bankruptcy

Most Severe
Debt Write-off 100% discharge
Cost £680 court fee
Duration 12 months discharge
Debt Limit No limit
Asset Protection May lose property
Income Requirement Any income level

Take Action: Is a DRO Right for You?

A Debt Relief Order can provide a genuine fresh start for people trapped in unmanageable debt with limited resources. With the 2024 changes expanding eligibility to debts up to £50,000, more people than ever can benefit from this government-backed debt solution.

Your Next Steps:

  1. Use our IVA calculator to see if you qualify for alternative debt solutions
  2. Individual Voluntary Arrangement guide - For higher income and debt levels above DRO limits
  3. Compare DRO vs IVA options to understand all your choices
  4. Debt Management Plan information - Informal alternative if you don’t qualify for DRO
  5. Learn about council tax debt relief if this is a major concern
  6. 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 could give you the fresh start you need.

Check Your Debt Solution Options

Summary: Debt Relief Orders in 2025

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:

  • Complete debt write-off after just 12 months for £90 fee
  • 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 rebuilding possible within 2-3 years of completion

If you’re struggling with debt under £50,000, have limited income and few assets, a DRO could provide the breathing space and fresh start you need to rebuild your financial life.