# What is a Debt Relief Order (DRO)? > Quick answer · Last updated 23 June 2026 Canonical HTML: https://moneyguide.org.uk/answers/what-is-debt-relief-order/ Markdown mirror: https://moneyguide.org.uk/answers/what-is-debt-relief-order.md ## In short A Debt Relief Order is a form of insolvency for people with qualifying debts up to £50,000, minimal assets (under £2,000 plus a car up to £4,000) and little spare income (under £75 a month). It freezes qualifying debts for 12 months and writes them off if your situation has not improved. There is no application fee in England and Wales. A DRO is a low-cost alternative to bankruptcy for people who cannot afford the £680 bankruptcy fee and have modest finances. You apply through an authorised intermediary — usually a debt adviser at a charity — who checks eligibility and submits the application to the Official Receiver. Applications have been free since 6 April 2024. To qualify in England and Wales you must owe £50,000 or less in qualifying unsecured debt, have assets worth no more than £2,000 (including a car worth up to £4,000), and have £75 or less monthly surplus income after essential living costs. You must not own your home, and you cannot get a DRO if you had one in the last six years or are already in an IVA or bankruptcy. During the 12-month moratorium, creditors named in the DRO cannot chase you for payment and must stop most enforcement action. Interest and charges on included debts are frozen. If your finances improve significantly — for example, a pay rise or inheritance — the DRO may be revoked. If not, included debts are written off at the end. A DRO appears on your credit file for six years and on the Individual Insolvency Register while active and for three months after. It suits debts such as credit cards, overdrafts and utility arrears but not magistrates' court fines, student loans or child maintenance. Free debt advice through gov.uk helps confirm whether a DRO beats a DMP or bankruptcy. ## Related - [What is bankruptcy in the UK?](https://moneyguide.org.uk/answers/what-is-bankruptcy-uk/) - [What is a debt management plan?](https://moneyguide.org.uk/answers/what-is-a-debt-management-plan/) - [Credit cards & loans guide](https://moneyguide.org.uk/credit/) ## Primary source gov.uk/options-for-paying-off-your-debts --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.