Glossary · UK
What is Debt Relief Order?
A form of personal insolvency in England and Wales that writes off qualifying debts for people with low income, few assets and a relatively small total debt.
Full Definition
A Debt Relief Order (DRO) is a low-cost personal insolvency option in England and Wales for people who cannot pay their debts but have limited income, minimal assets and a modest total amount owed. It is administered by the Insolvency Service and applied for through an approved debt adviser rather than the courts. Eligibility is based on caps on qualifying debts, on spare monthly income after living costs, and on the value of assets and any vehicle, with the precise thresholds set by the government and reviewed periodically - check gov.uk or a free adviser for the current limits before applying. A DRO normally lasts 12 months, during which listed creditors cannot pursue you; if your circumstances have not improved at the end, the qualifying debts are written off. A DRO appears on your credit file and the public Individual Insolvency Register, affecting future borrowing. Equivalent schemes differ in Scotland and Northern Ireland.