Debt Relief Order (DRO)

Debt Relief Order (DRO) – A fresh start when debt feels overwhelming

If you’re on a low income, have limited assets, and can’t keep up with your debts, a Debt Relief Order (DRO) could be the right solution for you.

A DRO is a government-backed debt solution that freezes most of your debts for 12 months. At the end of that period, any remaining qualifying debts are usually written off, giving you a real chance to move forward without the constant pressure of creditors.

At RMS Financial, we provide clear, compassionate guidance to help you understand if a DRO is suitable for your situation and support you through the entire process.

What is a Debt Relief Order (DRO)?

A Debt Relief Order is a formal insolvency solution designed for people with relatively low levels of debt and little disposable income or assets. It acts as a simpler and lower-cost alternative to bankruptcy.

Once approved:

  • Creditors must stop contacting you about the debts included in the DRO.
  • Interest and charges on those debts are frozen.
  • You usually make no payments towards the included debts during the 12-month period.
  • After 12 months (if your circumstances haven’t significantly improved), most of the debts are written off completely.
This gives you breathing space and a realistic path to a debt-free future.

We’ve helped over Thousand people deal with their debt

Who is a DRO suitable for?

A DRO is typically the best option if you:
  • Have total qualifying debts of £50,000 or less
  • Have very little disposable income (usually less than £75 per month after essential bills)
  • Own few assets (total value under £2,000, excluding certain items)
  • Do not own a vehicle worth more than £4,000 (or adapted vehicles for disability)
  • Live in England, Wales, or Northern Ireland
  •  living costs.
It is particularly helpful for people on benefits, low wages, or those whose income barely covers basic living costs

Key Benefits of a Debt Relief Order

  • Debt write-off
    Most unsecured debts are cleared after 12 months
  • Legal protection
    Creditors and enforcement agents (bailiffs) must stop chasing you
  • No monthly repayments
    To include debts during the DRO period
  • Lower cost
    Much cheaper and simpler than bankruptcy or an IVA
  • Quick process
    Applications can often be completed within weeks
  • Fresh start  Helps you regain control and focus on rebuilding your life

Eligibility Criteria for a DRO

You may qualify for a DRO if all of the following apply:

  • Your total qualifying debts are £50,000 or less
  • You have £75 or less disposable income each month (after household essentials)
  • Your non-essential assets total no more than £2,000
  • Your vehicle (if any) is worth less than £4,000
  • You have lived or worked in England, Wales, or Northern Ireland in the last 3 years
  • You haven’t had a DRO in the last 6 years

Our team will carry out a free, no-obligation assessment to check your eligibility and explain all your options clearly.

How Does the DRO Process Work?

  • Speak to us
    We’ll listen to your situation and assess whether a DRO (or another solution) is right for you.
  • Prepare the application
    We help you gather the required information and complete the paperwork accurately.
  • Official review
    The application is submitted to the Insolvency Service.
  • Approval
    If approved, the DRO takes effect and provides immediate protection.
  • 12-month period
    You focus on stabilising your finances.
  • Discharge
    At the end of 12 months, qualifying debts are written off (subject to your circumstances).
We guide you every step of the way so the process feels straightforward and stress-free.

What debts can be included in a DRO?

Most unsecured debts can be included, such as:

  • Credit cards
  • Personal loans
  • Store cards and catalogues
  • Overdrafts
  • Payday loans
  • Utility arrears (in some cases)
  • Council tax arrears (certain conditions apply)

Some debts like student loans, court fines, or child maintenance are usually not included.

Important Considerations

While a DRO offers significant relief, it will appear on your credit file for 6 years and may affect your ability to borrow money or open certain bank accounts during that time.
We always explain the full implications honestly so you can make an informed decision.

Ready to take the first step?

Don’t let debt control your life any longer. Speak to our friendly team today for honest advice and see if a Debt Relief Order could help you.
Why Trust UK Debt Expert
Practical debt advice

to help you find the best solution

Check your eligibility

for solutions like IVAs, Trust Deeds and more…

Rated 5 Star

We are rated 5 star by more than 93% on Trustpilot

We’ve helped over Thousand people deal with their debt
Scroll to Top