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Debt Relief Order

For free and impartial money advice and guidance, visit MoneyHelper, to help you make the most of your money.

Debtors with few or no assets might be able to write off their debts using a Debt Relief Order. 

A Debt Relief Order (DRO) is a potential debt solution for those with limited disposable income each month and few or no assets. It will stop all debt repayments and interest on your debts for 12 months. If your finances have not improved after this period, your debts will be written off. They are not available to debtors in Scotland and you will need to apply to the Insolvency Service to get a DRO. 

The pros

  • DROs are considered a cost-effective alternative to a bankruptcy application
  • You do not have to make any debt repayments within the initial 12 month period, and no interest will be added to your debts during this time
  • During the 12 months, creditors cannot contact you to request payments
  • Although a DRO is legally binding, there is no need to appear in court

The cons

  • DROs are not available in Scotland and they are only available to people who owe less than £30,000, or less than £20,000 in Northern Ireland
  • You must pay £90 to apply for a DRO, which is non-refundable
  • DROs negatively impact your credit file and are visible on a public register

More information on Debt Relief Orders

A Debt Relief Order can be a suitable and effective debt solution for some people. But you should only apply after learning more about DROs and after receiving personalised debt advice. MoneyNerd can provide you with valuable information to learn more about DROs, the process to apply and further implications. Find lots of DRO content at MoneyNerd!

Are you struggling with debt?
Are you struggling with debt?
  • Affordable repayments
  • Reduce pressure from people you owe
  • Stop interest and charges from soaring