DRO (Debt Relief Order)

Write off unmanageable unsecured debts

An alternative to bankruptcy for borrowers with limited finances

A DRO could be a viable alternative to bankruptcy if you have a low disposable income and few assets. It costs less than bankruptcy and your unsecured debts could be written off after a year.


Call us on 0800 970 7724.

Try our debt solution finder

Our simple debt solution finder (on the right) will tell you which debt solutions could help you, based on your circumstances.

What happens next:

Find out if a DRO could help you

£2,000

How much do you owe?

£,000
£50,000+

To give you the best options we can, we need a few more details...

How could a Debt Relief Order help?

Puts unaffordable debt repayments on hold
Once a DRO has been agreed, payments on your unsecured debts will be suspended for a year. During this time no interest or charges can be added to those debts.

Writes off debt after a year
If your circumstances haven't improved after the agreed 12 months, your unaffordable unsecured debts will be written off.

Costs much less than bankruptcy
Bankruptcy can now cost as much as £700, which some people can't afford. A Debt Relief Order costs just £90, which can be paid in instalments if necessary.

How a Debt Relief Order works

You can apply for a Debt Relief Order through Debt Advice Now by calling 0800 970 7724. All it costs is a £90 application fee to the Insolvency Service, which you can make through us.

If you meet all the criteria for a Debt Relief Order and your application is successful, your unsecured debt repayments will be suspended for 12 months. During this time you won't have to make any payments towards your unsecured debts, and no interest or charges can be added.

If your circumstances haven't improved sufficiently by the end of the 12 months, all debts covered by your Debt Relief Order will be written off.

Is a DRO right for me?

A Debt Relief Order could be the right option for you if you're completely unable to repay your debts but can't afford bankruptcy. However, there are other criteria you must meet to qualify - including:

  • Your unsecured debts must come to no more than £15,000
  • Your monthly disposable income must be less than £50
  • Your assets must be worth less than £300 in total (excluding a car, which can be worth up to £1,000)

If you meet the above criteria, it's quite likely you'll qualify. However, there are a few other things that could affect your application, which we'll explain when you talk to us.

Things to keep in mind

It's important to remember that a Debt Relief Order is an alternative to bankruptcy, and the impact on your credit rating will be similar. Records will be visible on your credit history for six years, and borrowing further credit during this time is likely to be difficult.

But you could face even more serious consequences if you don't get the help you need - so don't hesitate to get in touch if you're struggling.

Fees & Key information

Find out more about the fees involved with each debt solution.

Download the Insolvency Service guide to dealing with creditors.

Speak to one of our advisers on

0800 970 7724

We'll help find you the best solution to your debts