Debt relief order (DRO)

A debt relief order (DRO) is a way to have your debts written off if you have a relatively low level of debt and have few assets.

A DRO freezes your debt repayments and interest for 12 months. If your financial situation hasn’t changed at the end of this period then all of the debts included will be written off.

Benefits of a DRO

  • A debt relief order can be a low-cost alternative to bankruptcy
  • You don’t pay anything towards your debts for 12 months. After that they’ll be written off
  • Your creditors can’t pursue you for your debts during the 12 month period
  • Although a DRO is a formal debt solution, you don’t need to appear in court

Risks of a DRO

  • A DRO is only available if you owe less than £20,000 and live in England, Wales or Northern Ireland
  • You’ll need to pay the Insolvency Service a one-off fee of £90. If you qualify, our specialist team can help you apply
  • You can’t apply if you’re a homeowner
  • A DRO will appear on a public register and will affect your credit report negatively