MoneyEase
Written off after 12 months
When the order ends, the debts in it are written off. There’s nothing more to pay on them.
Debt Relief Order
On a low income and don’t own much? A DRO could clear qualifying debts in 12 months, with nothing to pay.
A DRO isn’t right for everyone. It will affect your credit rating, and it’s on a public register. This page describes DROs in England and Wales; Northern Ireland has its own version. Free, impartial debt advice is available from MoneyHelper.
Roughly how much do you owe?
A DRO at a glance
- The most you can owe to apply.
- £50,000
- The most you can have left each month after essential costs.
- £75
- Then the debts it includes are written off.
- 12 months
- To apply: the fee was abolished in April 2024.
- £0
Figures from GOV.UK and the Insolvency Service, for England and Wales.
Why people choose a DRO
No monthly payments
You pay nothing towards the debts in a DRO while it runs.
Free to apply
There’s no application fee: it was abolished in April 2024.
Legal protection
Creditors named in the order can’t chase you or take action while it runs.
Interest and charges frozen
Nothing new can be added to the debts it includes.
An adviser applies for you
An approved adviser checks you qualify and sends the application for you.
How a DRO works
Tell us about your debts
Answer a few questions. One of our advisers calls you, goes through your income and outgoings, and explains every option, not just this one.
An adviser checks you qualify
An approved adviser looks at your debts, income and what you own, and applies to the Insolvency Service if a DRO fits.
The order starts
Once it’s approved, it lasts 12 months. Creditors in it can’t chase you, and you make no payments to them.
Debts written off
After 12 months, the debts included in the order are written off.
Weigh it up
A DRO can clear debts quickly, but it has strict limits. Here is what helps, and the catch, side by side.
What helps
- No monthly payments towards the debts
- Written off after 12 months
- Free to apply
- Creditors in it can’t chase you
- Quicker and cheaper than bankruptcy
What to weigh up
- You must have a low income and few assets
- It stays on your credit file for six years
- Your name is on a public register
- If your situation improves, it can be revoked
- You can only have one every six years
Is a DRO right for you?
You’re likely a fit if…
- You owe less than £50,000
- You have less than £75 a month left after essential costs
- What you own is worth less than £2,000
- Any vehicle you own is worth less than £4,000
- You live in England or Wales
It may not be right if…
- You own your home
- You owe more than £50,000
- You have savings or assets over £2,000
- You’ve had a DRO in the last six years
- You live in Scotland
Other ways out of debt
A DRO isn’t the only route. We’ll tell you which could work for you.
- InformalCan be used in England, Scotland, Wales
One affordable monthly payment, shared between your creditors.
- FormalCan be used in England, Wales
Legal protection from most interest, charges and enforcement while you get advice.
- FormalCan be used in England, Wales
Clears most debts when nothing else will work.
Live in Scotland? The Minimal Asset Process is the nearest equivalent there.
Questions about DROs
How long does a DRO last?
12 months from the date it’s approved. During that time creditors in it can’t chase you, and at the end the debts it includes are written off.
Can I apply for a DRO myself?
No. An approved adviser, sometimes called an approved intermediary, must check you qualify and send the application to the Insolvency Service for you.
What happens to my bank account?
If you owe money to your bank, it may close your account or take money from it towards the debt. You may need to open an account with a different bank before your DRO starts.
Will a DRO affect my job?
For most people, no. Some jobs, such as some roles in law and financial services, have rules about DROs. Your adviser talks this through before you apply.
What debts can’t be included?
Student loans, magistrates’ court fines, child maintenance, social fund loans and debts from fraud. Most other unsecured debts, like cards, loans, overdrafts and utility arrears, can be included.
Is there free help?
Yes. MoneyHelper offers free, impartial debt advice, and you don’t have to use a company like ours to get help with your debts.
You don’t have to sort this out alone
Tell us roughly what you owe and we’ll show you what could help. It takes two minutes, won’t affect your credit score, and there’s no obligation.
Roughly how much do you owe?