Last reviewed: June 2026 · For use in England & Wales · eLitigant is a Community Interest Company (No. 16566612), not a law firm. Always check the current official form on GOV.UK before you file, and sign the statement of truth yourself.
In short
A Debt Relief Order (DRO) is a form of insolvency relief in England and Wales for people with qualifying debts of £50,000 or less, assets under £2,000 and £75 or less spare income a month. You cannot apply directly: an approved intermediary (such as a free debt-advice charity) submits it to the Official Receiver. There is no application fee. After a 12-month moratorium, qualifying debts are written off. Get free debt advice first and never pay a commercial firm.
The shortcut: eLitigant’s Chris drafts the document for you to this standard, from your details — you check, sign and file. A Community Interest Company, not a law firm; information, not advice.
Prepare it from scratch
Chris helps you compile your debts, assets, income and expenditure into a clear DRO-ready financial picture for your intermediary.
Before you pay anyone — do as much yourself as you can
Insolvency Practitioners are regulated — but the “advisers”, lead-generators and middlemen around them often are not. Be wary of upfront fees before any work is done, pressure to liquidate quickly, unsolicited calls or texts after you search online, and anyone who isn’t a named, regulated IP. Many early steps — talking to creditors, the moratorium, the paperwork — you can handle yourself with Chris.
When you genuinely need a practitioner, consider a local, independent, qualified Insolvency Practitioner. You are more likely to get a personal service, a named contact and clear, fair fees — rather than being one case among thousands.
Always check they are regulated, on the official register:
• England & Wales — the Insolvency Service’s register of authorised insolvency practitioners (gov.uk)
• Scotland — Accountant in Bankruptcy (AiB)
• Or check membership of the IPA, ICAEW or ICAS.
Check what you have written
Upload the schedules or details you have drafted and Chris reviews them for completeness and consistency before submission.
Creditors still chasing you?
Run a creditor letter, demand or court paper by Chris to understand where it sits against your situation and options.
Debt Relief Order (DRO) Guide (2026 Guide)
A Debt Relief Order is a form of insolvency relief designed for people who owe relatively small amounts, have no significant assets, and have no realistic way of repaying their debts. It provides a 12-month moratorium during which your creditors cannot chase you, and at the end of that period, your qualifying debts are written off entirely. The DRO regime was introduced by the Tribunals, Courts and Enforcement Act 2007, which inserted Part 7A into the Insolvency Act 1986. It is the lightest-touch insolvency option available in England and Wales, and for many people in serious financial difficulty, it is the most appropriate route.
When Do You Need a Debt Relief Order?
A DRO may be right for you if all of the following apply:
- Your total qualifying debts are £50,000 or less. This limit was increased from £30,000 in June 2024. It includes unsecured debts such as credit cards, personal loans, overdrafts, catalogue debts, utility arrears, and council tax arrears. It does not include secured debts (such as a mortgage) or debts excluded from a DRO (such as student loans, court fines, and child maintenance).
- Your total assets are worth £2,000 or less. This includes savings, investments, and the value of personal belongings (excluding essential household items, a reasonable amount of clothing, and tools of trade). One motor vehicle is allowed if its value is less than £4,000.
- Your disposable income is £75 or less per month. After deducting reasonable living expenses from your income, you must have £75 or less left over. If you have more, you may not qualify.
- You live in England or Wales, or have lived or carried on business here within the last three years.
- You have not had a DRO in the previous six years.
- You are not currently subject to another insolvency procedure — such as bankruptcy, an IVA, or another DRO.
If your debts are higher than £50,000 or you have significant assets, bankruptcy or an Individual Voluntary Arrangement may be more appropriate options.
What a DRO Involves
A DRO is not a court process. You do not go to court, and there is no hearing. The application is made through an approved intermediary — a debt adviser authorised by the Insolvency Service to process DRO applications. The decision is made by the Official Receiver.
Key features:
- 12-month moratorium: Once the DRO is made, your creditors cannot take any action to recover the qualifying debts for 12 months. This includes court proceedings, bailiff action, and contact from debt collectors.
- Debt discharge: At the end of the 12-month moratorium, if your circumstances have not materially changed, the qualifying debts are written off. You do not have to repay them.
- No asset realisation: Unlike bankruptcy, the Official Receiver does not sell your assets. You keep what you have (provided you met the asset limits when you applied).
- Restrictions: During the moratorium, you must not obtain credit of £500 or more without disclosing the DRO. You must not act as a company director without the court’s permission. You must not trade under a different name without disclosing your current name.
- Public record: Your DRO is recorded on the Individual Insolvency Register, which is publicly searchable. It remains on the register for 15 months (the 12-month moratorium plus three months).
- Credit impact: The DRO will appear on your credit file for six years from the date it was made.
How to Apply for a DRO: Step by Step
1. Get Free Debt Advice
You cannot apply for a DRO directly. You must go through an approved intermediary — a debt adviser who is authorised by the Insolvency Service. Approved intermediaries include advisers at Citizens Advice, StepChange Debt Charity, and certain other organisations. This advice is free. You should never pay a commercial company to apply for a DRO on your behalf.
The approved intermediary will assess whether a DRO is right for you and whether you meet all the qualifying criteria.
2. Prepare Your Financial Information
You will need to provide the intermediary with complete details of your financial situation:
- All debts: Creditor names, amounts owed, account references. Include everything — credit cards, loans, overdrafts, rent arrears, council tax arrears, utility debts, benefit overpayments, and any other unsecured debts.
- All assets: Savings, investments, vehicles, valuable personal property. Be honest — the Official Receiver can revoke a DRO if you have been dishonest about your assets.
- Income: All sources of income including employment, self-employment, benefits, pensions, and any other regular payments.
- Expenditure: Your monthly living costs — rent or housing costs, food, utilities, transport, childcare, and other essential spending.
3. Confirm You Meet the Qualifying Criteria
The intermediary will check that you meet all the conditions:
- Total qualifying debts: £50,000 or less
- Total assets: £2,000 or less (with a motor vehicle worth less than £4,000)
- Surplus monthly income: £75 or less
- You live in England or Wales (or have done within the last three years)
- No DRO in the last six years
- Not currently subject to bankruptcy, IVA, or another DRO
If you do not meet any one of these criteria, you cannot get a DRO and will need to consider other options.
4. The Fee
There is no fee. The £90 DRO application fee was abolished on 6 April 2024, so there is nothing to pay and nothing to save up for. An approved intermediary makes the application for you free of charge. If anyone asks you for a payment to apply for a DRO, that is not the official process — a debtor’s own bankruptcy application, by contrast, still costs £680.
5. The Intermediary Submits Your Application
Once you have provided all the information, the intermediary submits your application electronically to the Official Receiver. You do not submit it yourself.
6. Official Receiver Decision
The Official Receiver reviews the application and decides whether to make the DRO. This is normally done within a few working days of submission. The Official Receiver checks that you meet the qualifying criteria and that the information provided is accurate.
If the DRO is made, the moratorium starts immediately. You will receive confirmation by email or post. If the application is refused, you will be told the reasons.
7. Moratorium Begins
From the date the DRO is made, the 12-month moratorium is in effect. Your creditors are notified and must stop all recovery action on the qualifying debts. If any creditor continues to chase you, you can report this to the Official Receiver.
Key Deadlines
| Stage | Deadline |
|---|---|
| Maximum qualifying debts | £50,000 |
| Maximum assets | £2,000 (vehicle worth less than £4,000) |
| Maximum surplus income | £75 per month |
| Moratorium period | 12 months from date of DRO |
| Time before you can apply for another DRO | 6 years from previous DRO |
| Entry on Individual Insolvency Register | 15 months (12 months + 3 months) |
| Impact on credit file | 6 years from date of DRO |
| DRO fee | None (abolished 6 April 2024) |
What Happens After the DRO
During the moratorium (12 months):
- Your creditors cannot take enforcement action for the qualifying debts. This includes issuing court proceedings, sending bailiffs, using debt collectors, or adding interest or charges.
- You must not obtain credit of £500 or more without telling the lender about the DRO.
- You must inform the Official Receiver if your circumstances change materially — for example, if you receive an inheritance, start earning significantly more, or acquire assets above the qualifying limits.
- If your circumstances do change materially, the Official Receiver can revoke the DRO and your debts will no longer be covered.
After the moratorium (12 months):
- If your circumstances have not changed materially, the qualifying debts are discharged. This means you no longer owe them. Your creditors cannot pursue you for them.
- The DRO entry remains on the Individual Insolvency Register for a further three months, then is removed.
- The DRO remains on your credit file for six years from the date it was made.
- You are free to apply for credit, act as a company director, and carry on as normal — although your credit score will be affected for the six-year period.
Debts NOT covered by a DRO:
- Student loans
- Court fines (including magistrates’ court fines)
- Child maintenance and child support arrears
- Social fund loans
- Debts arising from fraud
- Debts arising from personal injury claims
- Secured debts (e.g. a mortgage — the DRO does not affect your obligation to the mortgage lender)
Common Mistakes
1. Assuming All Debts Are Included
Not all debts qualify for a DRO. Student loans, court fines, child maintenance, and secured debts are excluded. If a significant proportion of your debts fall into excluded categories, a DRO may not help as much as you expect.
2. Not Declaring All Assets
The Official Receiver can revoke your DRO if you have been dishonest about your assets. Declare everything — even items you think are worthless or that you assume will not count. It is better to declare too much than too little.
3. Exceeding the Income Threshold
If your surplus income is even slightly above £75 per month, you do not qualify. The intermediary will work through your income and expenses carefully. Make sure all your essential spending is properly accounted for — many people underestimate their actual expenditure.
4. Paying a Commercial Company
Some commercial debt management companies charge fees for DRO applications or claim to offer a “premium” service. You should never pay anything for DRO assistance. Approved intermediaries provide this service free. If someone is charging you hundreds of pounds for a DRO application, you are being exploited.
5. Not Reporting Changes in Circumstances
If you receive an inheritance, win money, get a significant pay rise, or acquire valuable assets during the moratorium, you must tell the Official Receiver. Failure to do so can result in the DRO being revoked and additional consequences including a Debt Relief Restrictions Order.
6. Thinking a DRO Has No Consequences
While a DRO is less severe than bankruptcy, it still has real effects. It stays on your credit file for six years. It is recorded on a public register. It restricts your ability to obtain credit and hold certain roles during the moratorium. It should not be entered into lightly.
7. Applying When You Have a Genuine Dispute About a Debt
If you genuinely dispute that you owe a particular debt, including it in a DRO is not the right approach. You should deal with the disputed debt separately — by challenging it with the creditor or through court proceedings. Including a disputed debt in a DRO means accepting it as a valid debt.
8. Not Considering Other Options
A DRO is only one option. If your debts are above £50,000, you cannot use a DRO. If you have assets worth more than £2,000, you cannot use a DRO. If you have surplus income above £75 per month, you cannot use a DRO. In these cases, bankruptcy or an IVA may be more appropriate. Always get proper debt advice before deciding.
The Rules That Apply
The DRO regime is governed by the following legislation:
- Insolvency Act 1986, Part 7A (sections 251A to 251X) — inserted by the Tribunals, Courts and Enforcement Act 2007. This is the primary statutory framework for DROs, covering eligibility criteria, the moratorium, debt discharge, and revocation.
- Insolvency (England and Wales) Rules 2016, Part 8 — the procedural rules for DRO applications and administration.
- The Insolvency Proceedings (Monetary Limits) (Amendment) Order 2024 — the statutory instrument that increased the maximum debt limit from £30,000 to £50,000 (effective 28 June 2024).
- Insolvency Act 1986, s.251M — grounds for revocation of a DRO, including material changes in circumstances and dishonesty.
- Insolvency Act 1986, Schedule 4ZA — the list of debts that are excluded from a DRO.
The qualifying criteria (debt limit, asset limit, income limit) are set by statutory instrument and can be changed by the government without primary legislation. Always check the current limits at the time of your application.
Related Court Forms & Guides
- Form N260: Statement of Costs — the costs schedule used at summary assessment.
- Form N244: Application Notice — the form for interim applications.
- Start a Money Claim Online (OCMC) — where most civil money claims begin.
- Particulars of Claim — setting out the basis of your claim.
- Civil Court Forms Index — every civil court form guide in one place.
How Chris Can Help
The DRO process itself is handled by an approved intermediary, and Chris cannot submit a DRO application for you — that must go through an authorised debt adviser. However, Chris can help you prepare for the process and deal with related issues.
Chris can help with:
- Assessing whether you qualify — reviewing your debts, assets, and income against the current qualifying criteria to determine whether a DRO is realistic before you approach an intermediary.
- Preparing your financial statement — organising your debts, assets, income, and expenditure into a clear format so that the intermediary process is faster and smoother.
- Identifying which debts are excluded — so you have a realistic picture of what the DRO will and will not cover.
- Dealing with creditors in the meantime — if creditors are threatening court action or bailiff enforcement while you are preparing your DRO application, Chris can help you draft appropriate correspondence to buy time.
- Responding to a Debt Relief Restrictions Order — if the Official Receiver proposes restrictions after your DRO, Chris can help you understand and respond to the proposal.
- Considering alternatives — if a DRO is not suitable for your situation, Chris can help you prepare for bankruptcy or explore an IVA instead.
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Frequently asked questions
What is a Debt Relief Order?
A DRO is the lightest-touch insolvency option in England and Wales, designed for people who owe relatively small amounts, have no significant assets, and no realistic way to repay. It provides a 12-month moratorium during which creditors cannot chase you, and at the end qualifying debts are written off entirely. It was introduced by the Tribunals, Courts and Enforcement Act 2007, which inserted Part 7A into the Insolvency Act 1986.
Who qualifies for a DRO?
A DRO may be right for you if your total qualifying debts are £50,000 or less, your total assets are worth £2,000 or less (with one motor vehicle worth less than £4,000), and your disposable income is £75 or less per month. You must also live in England or Wales (or have done within the last three years), not have had a DRO in the previous six years, and not currently be subject to another insolvency procedure such as bankruptcy, an IVA, or another DRO.
Do I go to court for a DRO?
No. A DRO is not a court process — there is no hearing and you do not go to court. The application is made through an approved intermediary, a debt adviser authorised by the Insolvency Service, and the decision is made by the Official Receiver.
How do I apply for a DRO?
You cannot apply directly. You must go through an approved intermediary such as an adviser at Citizens Advice or StepChange, which is free. You prepare complete details of your debts, assets, income and expenditure, the intermediary confirms you meet the qualifying criteria and submits your application electronically to the Official Receiver. You should never pay a commercial company to apply on your behalf.
What does a DRO cost?
There is no DRO application fee: the £90 charge was abolished on 6 April 2024, so the approved intermediary applies for you free of charge. Always check the current fee for your situation before applying.
What happens during and after the moratorium?
For 12 months, creditors cannot take action to recover qualifying debts, and the Official Receiver does not sell your assets. At the end of the moratorium, if your circumstances have not materially changed, the qualifying debts are written off. The DRO is recorded on the publicly searchable Individual Insolvency Register and appears on your credit file for six years from the date it was made.
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Related guides: Apply to vary a CCJ (N245) · Help with fees (EX160) · All civil court forms
See also: DIY company insolvency & rescue — every option compared, and how to cut the insolvency-practitioner fees.
Form content and official guidance on this page are reproduced or adapted from material published by the Insolvency Service on GOV.UK. Contains public sector information licensed under the Open Government Licence v3.0. eLitigant CIC is independent and is not affiliated with, or endorsed by, the Insolvency Service or any government department. Always check the current official form on GOV.UK before you file.