Guide · 7 min read
Debt Relief Orders (DROs): the complete 2026 guide
How a Debt Relief Order works in England and Wales, the 2026 eligibility rules (£50,000 debt limit, £75 surplus income, £2,000 assets), which debts are included, how it stops bailiffs and the downsides.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 5 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
Key points
- A Debt Relief Order (DRO) is a formal debt solution for people in England and Wales with a low income and few assets.
- It’s free. The £90 fee was abolished in April 2024.
- You may qualify if you owe £50,000 or less, have £75 a month or less spare income, and have assets worth £2,000 or less (plus a vehicle worth less than £4,000).
- Once it’s made, creditors named in it can’t use bailiffs or take other action to collect those debts. After 12 months, the debts are usually written off.
- It affects your credit rating for six years and comes with restrictions. You must apply through an approved intermediary – a qualified debt adviser.
What is a Debt Relief Order?
A DRO is a legal order made by the Official Receiver, part of the Insolvency Service. It’s designed for people who can’t pay their debts and have little realistic prospect of doing so, but who don’t need the cost and complexity of bankruptcy.
While a DRO is in place (normally 12 months), the creditors named in it can’t chase you for payment or take enforcement action without the court’s permission. At the end, if your circumstances haven’t improved, you’re discharged from the debts included – they’re written off.
DROs are at a record high
DROs became far more accessible in 2024, when the £90 fee was scrapped (6 April 2024) and the debt limit rose from £30,000 to £50,000 (28 June 2024). Since then, numbers have soared:
- 46,939 DROs were made in England and Wales in 2025, the highest annual figure since DROs were introduced in 2009 (Insolvency Service).
- In March 2026, 4,523 DROs were made in a single month, a record for the monthly series.
- In the 12 months to August 2026, DROs made up around 35% of all personal insolvencies.
Who can get a DRO? The 2026 eligibility rules
You’re generally eligible if all of these apply:
| Rule | Limit |
|---|---|
| Total qualifying debts | £50,000 or less |
| Spare (surplus) income after normal household costs | £75 a month or less |
| Total value of assets | £2,000 or less |
| Vehicle | You can keep one worth less than £4,000 |
| Where you live | You’ve lived, had a home or worked in England or Wales in the last 3 years |
| Previous DRO | You haven’t applied for a DRO in the last 6 years |
| Other insolvency | You’re not currently bankrupt, in an IVA or in another DRO |
Some things aren’t counted as assets, such as your household furniture and essential goods, and a pension that you can’t access yet.
Homeowners usually can’t get a DRO, because the value of your share of a home is normally more than the £2,000 asset limit.
The adviser will also check that you haven’t recently given away assets or paid one creditor in preference to others, as this can affect your application.
Which debts can be included?
Most unsecured debts can be included, such as:
- council tax arrears
- credit cards, loans, overdrafts, payday loans and catalogues
- rent arrears (although your landlord may still be able to take possession action)
- energy and water arrears
- benefit overpayments (unless they arose from fraud)
- most HMRC tax debts
- county court judgments
These can’t be included:
- magistrates’ court fines and confiscation orders
- child maintenance
- student loans
- debts from fraud
- secured debts, such as a mortgage
If bailiffs are chasing you for a debt that can’t be included, a DRO won’t stop them for that debt. Read about priority debts.
How a DRO stops bailiffs
Once the DRO is made, there’s a moratorium on the debts listed in it. That means the creditors named can’t take any action to recover those debts, including enforcement by bailiffs, without the court’s permission. If bailiffs contact you after your DRO is made, give them the DRO details and tell the creditor.
While you’re getting advice and waiting for the DRO, you may be able to get Breathing Space to pause bailiff action. Read our article: will a DRO stop bailiffs?
How to apply for a DRO
You can’t apply on your own. You must go through an approved intermediary – an experienced debt adviser working for an organisation authorised to help with DRO applications. They’ll check your eligibility free of charge.
- Speak to a debt adviser. They’ll go through your income, spending, assets and debts.
- The adviser checks you qualify and that a DRO is the best option for you.
- The application is submitted online to the Official Receiver.
- The Official Receiver decides whether to make the DRO, usually within a few weeks.
- Your creditors are told and must stop collection.
The downsides of a DRO
A DRO isn’t right for everyone. Before applying, understand that:
- It affects your credit rating. A DRO stays on your credit file for six years and is shown on the public Individual Insolvency Register during the DRO and for three months afterwards.
- There are restrictions for 12 months. You must not get credit of £500 or more without telling the lender about your DRO, and you can’t be a company director without the court’s permission.
- You must report changes. If your income rises, you get a windfall such as an inheritance, or you acquire assets, you must tell the Official Receiver. Your DRO could be revoked.
- Some debts aren’t included, such as magistrates’ court fines and student loans.
- It may affect some jobs, particularly in financial services or law.
- You can only have one every six years.
DRO vs IVA vs bankruptcy
| DRO | IVA | Bankruptcy | |
|---|---|---|---|
| Cost | Free | Fees, usually included in your payments | £680 application fee |
| Debt limit | £50,000 | No limit | No limit |
| Length | 12 months | Usually 5–6 years | Usually 12 months (payments can last 3 years) |
| Monthly payment | None | Yes | Only if you have spare income |
| Home | Usually not available to homeowners | Home usually protected, but you may need to release equity | Your home may be sold |
| Stops bailiffs for included debts | Yes | Yes, once approved | Yes |
Read debt solutions compared for the full picture, or our IVA guide.
More about DROs
- How to apply for a Debt Relief Order, step by step
- What debts can be included in a DRO?
- DRO vs bankruptcy: which is better?
- Can I keep my car in a DRO?
- Can council tax debt be written off?
Frequently asked questions
How much does a DRO cost?
Nothing. The £90 application fee was removed on 6 April 2024, and approved intermediaries can’t charge you for helping you apply.
What is the DRO debt limit in 2026?
£50,000. The limit rose from £30,000 on 28 June 2024.
Can I get a DRO if I own a car?
Yes, if the vehicle is worth less than £4,000. A more valuable car usually means you won’t qualify.
Can I get a DRO for council tax arrears?
Yes. Council tax arrears can be included. Your current council tax bill isn’t included, so you must keep paying it.
How long does a DRO last?
Usually 12 months. At the end, you’re discharged from the debts included in it.
Can I get a DRO in Scotland or Northern Ireland?
DROs in this form are for England and Wales. Northern Ireland has its own DRO system with different rules, and Scotland has different solutions. Read our Scotland and Northern Ireland guide.
Sources
- GOV.UK, Debt Relief Orders
- GOV.UK, How to get a debt relief order (DRO)
- Insolvency Service, Individual insolvency statistics, December 2025
- Insolvency Service, Individual insolvency statistics, March 2026
- Insolvency Service, Individual insolvency statistics, August 2026
How we wrote this guide
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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