Finance glossary
Debt Relief Order — DRO
Also known as: DRO
In simple terms
A debt relief order is a way to have your debts written off if you owe a relatively small amount, have little spare income and few assets. It freezes your debts and, after a year, cancels them.
On this page
What does debt relief order mean?
A Debt Relief Order (DRO) is a formal insolvency solution in England and Wales for people with relatively low debts, little spare income and minimal assets. It is aimed at those who cannot realistically pay what they owe.
A DRO is much cheaper than bankruptcy and is applied for through an approved debt adviser.
How a debt relief order works
You must meet eligibility limits on total qualifying debt, spare monthly income and the value of your assets (including any vehicle), which are set by the government and change over time. An approved intermediary — usually a debt charity — submits the application for free.
Once approved, your included debts are frozen for a moratorium period of 12 months. If your situation has not improved by the end, the debts are written off.
How could this affect me?
A DRO can give a genuine fresh start, but it appears on a public register and stays on your credit file for six years. During the order there are restrictions, such as limits on borrowing.
Because the eligibility limits are specific and change, it is essential to check current thresholds with a free debt adviser before applying.
Things to watch out for
- Strict, changing limits apply to your debt, income and assets — check current figures.
- A DRO is recorded on a public register and your credit file for six years.
- Not all debts can be included (for example, some court fines and student loans).
Know your rights
- A DRO is applied for free through an approved intermediary (usually a debt charity such as StepChange or Citizens Advice).
- Once made, included creditors generally cannot take action to recover the debt during the moratorium.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- GOV.UK, Get a Debt Relief Order (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, Debt Relief Orders (opens in a new tab). Accessed 22 Aug 2026.