Debt Relief Order

What is a Debt Relief Order?

A Debt Relief Order (DRO) is a legal arrangement that stops most creditors from taking further action against you for a period of 12 months. It is intended for individuals with personal debts totalling up to £50,000 that they are unable to repay.

During the 12-month period for debts that are part of a DRO:

• You will not be obligated to repay your debts.
• Interest and fees on your debts will cease to accumulate.
• You will not need to communicate with your creditors.

These protections will remain effective as long as you continue to satisfy the eligibility criteria for the DRO. If your financial circumstances do not improve after the 12-month period, the debt will be eliminated.

Do I qualify for a Debt Relief Order?

To qualify for a DRO, you must meet the following requirements:

• Be unable to pay your debts.
• Have total debts amounting to less than £50,000.
• Possess savings or valuable items worth less than £2,000.
• Own a vehicle worth less than £4,000 if sold today.
• Have £75 or less left each month after covering living expenses and debt repayments.
• Have lived or worked in England or Wales within the last three years.
• Not have had a DRO in the past six years.

What debts can I include?

You may include most types of debt in your DRO application, provided the total does not exceed the £50,000 threshold. Qualifying debts that can be included are:

• Credit cards
• Overdrafts and loans
• Rent and utility arrears (gas, electricity, telephone)
• Council tax and income tax
• Buy now, pay later agreements
• Benefit overpayments
• Debts owed to friends and family

Once your DRO is approved, you will generally be exempt from repaying the debts listed or any interest associated with them.

What debts do I still need to pay?

Certain types of debts cannot be included in a DRO. You will still be required to pay:

• Child maintenance or any debts resulting from family court proceedings
• Student loans
• Budgeting and crisis loans from the Social Fund
• Debts secured against any assets you own
• Court-ordered damages or fines
• Unpaid TV licence fees

Applying for a Debt Relief Order

To apply for a DRO, you must reach out to an approved debt advice provider. We offer free support and can assist you in connecting with a debt adviser.

If you think a DRO is the right choice for you, please contact us for further guidance. If we evaluate your situation and determine that it is appropriate, we can assist you through the application process.