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How to apply for a debt relief order (DRO)

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In short. If you owe under £50,000, have minimal assets and spare income, an approved intermediary submits your free DRO application to the Insolvency Service — qualifying debts are frozen for 12 months and then written off if your situation has not improved.

A debt relief order (DRO) is a form of insolvency for people with low income, few assets, and relatively small debts who cannot afford bankruptcy fees. During the 12-month moratorium, creditors cannot chase you for included debts. If your financial situation has not improved after 12 months, the debts are written off. DROs are only available in England and Wales through approved intermediaries.

Last reviewed:

·Estimated time: 42 days

The steps

  1. 01

    Check you meet all eligibility criteria

    You must owe £50,000 or less in qualifying debts, have £75 or less spare income each month after essential living costs, and assets worth no more than £2,000 (including a car worth up to £4,000). You must live in England or Wales, or have done business there in the last three years, and not have had a DRO in the last six years.

    Official link →

  2. 02

    Confirm your debts qualify

    Qualifying debts include credit cards, loans, overdrafts, rent and utility arrears, and benefit overpayments. Some debts are excluded: magistrates' court fines, student loans, child maintenance, and secured debts. List every debt with balances and creditors.

  3. 03

    Find an approved intermediary

    You cannot apply for a DRO yourself. An approved intermediary — usually at a free debt advice charity such as Citizens Advice, StepChange, or a local advice agency — checks your eligibility and submits the application. Contact a free debt adviser to be referred.

    Official link →

  4. 04

    Complete the application with your intermediary

    There is no application fee — DROs have been free since 6 April 2024. The intermediary completes the online form with you and submits it to the Insolvency Service. Never pay a third party to 'arrange' a DRO; only approved intermediaries can apply.

  5. 05

    The Official Receiver considers your application

    Once submitted, the Insolvency Service reviews your case. If accepted, a moratorium begins immediately — included creditors must stop collection activity, interest, and charges. You receive confirmation of your DRO and its start date.

    Official link →

  6. 06

    Follow DRO restrictions during the moratorium

    You must cooperate with the Official Receiver, inform them of any windfalls or income changes, and cannot borrow more than £500 without telling the lender you are in a DRO. Your DRO is recorded on the Individual Insolvency Register and your credit file for six years.

  7. 07

    Complete the 12-month period

    If your circumstances have not improved after 12 months, included debts are written off and the DRO ends. If your finances improve significantly — for example a pay rise or inheritance — the DRO may be revoked or converted to another insolvency procedure.

Common pitfalls

  • Applying when you exceed asset or income limits leads to rejection — the intermediary should verify eligibility carefully first
  • Failing to declare all debts or assets is an offence and can lead to a revoked DRO or prosecution — disclose everything including cars, savings, and valuable items
  • Taking on more than £500 of credit without disclosing your DRO breaches the rules and can void the order

FAQ

How does a DRO differ from bankruptcy?
DROs are free to apply for versus £680 for bankruptcy, suit lower debt levels, and do not require a court appearance. Bankruptcy handles larger debts and assets but has more severe restrictions.
Will a DRO affect my job?
Some professions — solicitors, accountants, financial services roles, and pub licensees — restrict insolvency. Check your employment contract and professional body rules before applying.
Can creditors still contact me during a DRO?
Included creditors must stop enforcement action during the moratorium. They may send statements but cannot chase payment. Debts not listed in the DRO remain your responsibility.
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