Debt Relief Orders: how they work in England and Wales
Published · 4 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
A Debt Relief Order, or DRO, is a way to deal with unaffordable debts for people on very low incomes with few assets. This guide explains who can get one, what it costs, how long it lasts and its limits.
Who this guide is for
This guide is general information for people living in England or Wales who are struggling with debts they cannot pay. It does not apply if you live in Scotland or Northern Ireland, where DROs are not available and different options exist. It is not advice for your own situation, and free, confidential help is available (see the end of this guide).
The figures below were checked on GOV.UK on 11 October 2026, in the 2026/27 tax year.
What a DRO is
GOV.UK describes a DRO as a way to deal with personal debts you cannot pay. It normally lasts 12 months. Once it is approved, you stop paying the qualifying debts and interest listed in it. At the end of the period, you no longer have to repay those debts. During the DRO, the creditors listed cannot ask you for payments, although they can still send statements and letters.
You do not go to court. Applications are made online by an approved debt adviser, who submits them to the Insolvency Service. You cannot apply on your own.
Who can get one
GOV.UK lists these conditions for England and Wales.
- You owe less than £50,000 in total.
- You have savings or valuable items worth less than £2,000 in total.
- Any vehicle you own is worth less than £4,000 (its sale value today).
- You do not have enough money left at the end of the month to make debt repayments.
- You have lived or worked in England or Wales in the last 3 years.
- You are not currently bankrupt, and have no interim order or Individual Voluntary Arrangement (IVA).
- You have not had a DRO in the last 6 years.
Which debts are included
GOV.UK says qualifying debts include credit cards, overdrafts, loans, rent arrears, utility bills, council tax, income tax, buy now pay later agreements, benefit overpayments and debts to friends and family.
Some debts cannot be included and still have to be paid. These include child maintenance, student loans, Social Fund budgeting and crisis loans, debts secured against your possessions, court-ordered damages for personal injury or death, and unpaid TV licence fees.
What changes while you have a DRO
A DRO comes with rules. GOV.UK lists several of them.
- You must tell a lender about the DRO if you borrow more than £500, alone or jointly.
- You should tell your bank or building society when applying for an overdraft or new account.
- You must report an increase in regular income, and any money or valuable items you receive.
- You cannot act as a company director, or create, manage or promote a company, without court permission.
- You cannot apply for another DRO for 6 years.
Breaking the rules can lead to prosecution. It can also lead to a Debt Relief Restrictions Order, which lasts 2 to 15 years. You still need to keep paying regular costs such as rent and bills.
Effect on credit
A DRO stays on your credit reference file for 6 years from approval. It is removed from the Individual Insolvency Register 3 months after it ends. GOV.UK suggests keeping your paperwork after a DRO ends, because you may need evidence of it when applying for credit.
Looking back at the last 2 years
The adviser reviews payments you made to creditors, and any possessions sold or given away, in the last 2 years. GOV.UK says preferring some creditors over others, or selling items for less than they are worth, can affect eligibility. Creditors can also ask the Insolvency Service to look into whether someone made their debts worse or acted dishonestly.
Other options
A DRO is only one route. GOV.UK also describes bankruptcy, an IVA, a Debt Management Plan and an Administration Order for some court judgments. A debt adviser can explain how they differ. In Scotland, the Debt Arrangement Scheme is one route.
Check before you act
Rules and limits change. It is worth confirming the details on the official pages linked below before relying on anything here. Free, independent help is available from MoneyHelper, National Debtline, Citizens Advice and StepChange. Being in debt is common, and asking for help early is normal.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
