Debt Relief Order (DRO)

Overview

A Debt Relief Order (DRO) is a solution to deal with personal debts you cannot pay.

A DRO normally lasts 12 months. If approved, you stop making payments towards the debts (and interest) listed in the DRO during that time. After the 12 months, you will not have to pay these debts anymore.

A DRO stays on your credit reference file for 6 years from the date it was approved, which is the same for other debt relief options.

Our specialist debt adviser will check if you meet the eligibility criteria – free of charge. They will assess your situation and look at your income, debts, and belongings.

Eligibility

You are eligible for a DRO if you:

  • owe less than £50,000 in total
  • have savings or valuable items worth less than £2,000 in total
  • own a vehicle worth less than £4,000 (if you were to sell it today)
  • do not have enough money left at the end of the month to make your debt repayments, you must have £75 or less left over each month after paying for essential household expenses.
  • have lived or worked in England and Wales in the last 3 years
  • are not currently bankrupt, have an interim order or an individual voluntary arrangement
  • have not had a DRO in the last 6 year

Qualifying Debts

Debts that can be included in a DRO are called ‘qualifying debts’.

They include:

  • credit cards, overdrafts and loans
  • rent arrears and utilities (gas, electricity, telephone)
  • council and income tax
  • buy now – pay later agreements
  • benefit overpayments
  • debts to friends and family

Once your DRO is approved, you will no longer have to pay the debts (and interest) listed in the DRO anymore.

Debts that cannot be included in a DRO

However there are some types of debts that cannot be included in a DRO. You’ll still have to pay:

  • unpaid TV licence fees
  • child maintenance or anything you owe under family proceedings
  • student loans
  • budgeting and crisis loans from the Social Fund
  • debts secured against any possessions you own
  • damages for personal injury or death a court has ordered you to pay

Information we require to help you to apply

In order to help you we will need accurate up-to-date information about all your income and spending, if you can please supply this information to our office by post, email or by-hand, a specialist adviser will contact you to arrange a meeting

This includes the following

  • Wage slips,
  • Benefit statements,
  • Pension income statements,
  • Last 3 months Bank statements,
  • Utility bills such as gas, electricity and water.
  • Council Tax Bill
  • Tenancy agreement or details of rent payable
  • Mortgage Statement (if appicable)

We will also need

  • a Personal Budget Sheet
  • your latest letters/statements from your creditors;
  • details of your addresses for the past 6 years
  • your free statutory credit report from a credit reference agency.

You can obtain your statutory report from 

Last Updated on June 10, 2026 by Ashford Advice