Debt Relief Order


What is a Debt Relief Order – DRO?

A Debt Relief Order is an official order granted by the official receiver that if approved will freeze your debts, interest and creditor recovery procedures for a period of 12 months. If after 12 months your situation has not changed then any unsecured debts will be written off.

Is a DRO suitable for me?

If you have unsecured debts which total less than £50,000, the value of your assets and savings is less than £2,000, your car is worth less than £4,000 (£2,000 if you live in Northern Ireland) and your monthly disposable income after you have paid all of your creditors and household bills is below £75, then a Debt Relief order could be a solution to tackle your debts. 

A period of 12 months will be granted during which all debt payments and interests are frozen by your creditors, if after 12 months your situation has not changed then your unsecured debts will be written off. Debts covered by a Debt Relief Order generally include credit cards, overdrafts, loans, store and catalogue cards, rent, council tax, utility, phone bills, Revenue debts including overpaid benefits, self assessment tax, VAT and PAYE/NIC.

There are other solutions including IVA’s, Debt Management Plans, Bankruptcy and Dealing Directly with your Creditors which may be appropriate. If you live in Scotland, the solutions are different, please visit Scottish Debt Solutions.

For full debt advice and whether a DRO would be your best option, you can also speak to one of our advisors.

What does the service cost and who can I speak to?

There is no fee to apply for a DRO. You can Apply for a DRO through an approved intermediary. There is a list of approved intermediaries listed on the insolvency service website.

The Debt Advisor Ltd is regulated by The Financial Conduct Authority. This means we are able to offer debt advice and deliver both formal and informal solutions. DRO’s do need to be carefully considered and you must take independent debt advice. We hope that the information and debt advice on this site including Frequently Asked Questions, will help inform you.

DRO – The benefits and the risks

  • A Debt Relief Order is designed to be a low cost debt solution and an alternative to Bankruptcy if you have a debt level of £50,000 or less, little or no savings and few assets as detailed above.
  • Although a Debt Relief Order is a formal solution the cost is relatively low and the outcome is that for a period of 12 months you will have your debts and interest incurred frozen and if your situation has not changed after 12 months your debts will be written off.
  • If you qualify for a DRO, you can potentially write off up to £50,000 of unsecured debt.
  • Lenders are not allowed to contact or chase you for payment and you do not need to make any payments to lenders for 12 months.
  • There are no fees to apply for a DRO.
  • Not all debts qualify to be written off under a DRO. Debts such as student loans, child support maintenance and magistrates courts fines are ineligible under the scheme.
  • If you have given away assets, sold goods for less than their value or paid certain creditors in favour of others in the 2 years prior to your DRO application, a DRO could be refused.
  • A Debt Relief order will appear on your credit file and you will find it difficult to obtain credit for a period of 6 years. In addition, your details will be added to the insolvency register

We are proud of our 5* Trustpilot reviews

July 2024, Lauren

Highly Recommend – Connor Hargreaves was extremely helpful!! I contacted the debt advisor to combine all my debt into 1 payment so it was more manageable for me, Connor spent a hour on the phone with me & was very helpful, he ensured i understood all information given to me which left me reassured and satisfied once the plan was arranged. He was able to fulfil my request and put me on a DMP, this has lifted a massive weight off my shoulders. Highly recommend, Thankyou so much for your help Connor.

July 2024, Lucas

Feeling lost and not knowing what to do anymore and these guys have talked me through many solutions to my problems where I saw none and I feel like maybe there is light at the end of the tunnel and it’s all thanks to these guys

July 2024, Vissi

Andrew Shepherd spent 2 hours on the phone talking to me, explaining everything and giving me good advice on what I qualify for. And because I am new to these things he was incredibly patient and I felt completely reassured at the end. Thank you very much.

July 2024, Alan

IVA for very large credit card debt…. I had a large credit card debt and was barely able to pay the interest. I heard about IVA’s and did some research. I contacted 4 different companies and chose The Debt Advisor. The reason was the good reviews and my first contract was with Andrew Shepherd. Andrew was very good. After speaking about my opinions I thought a IVA would be best. I forwarded the information they required and that was it. I was given a date for the IVA meeting with my creditors and the received a call to say my IVA was approved. I would recommend The Debt Advisor to any body with money problems.

July 2024, Chris

Very helpful and understanding. I can’t recommend the debt advisor more, I have been struggling for a while with my debts and suffer from Anxiety & depression and it got a lot worse and felt embarrassed to reach out for help. I had Andrew go through the whole process with me step by step and it feels like a massive weight off my shoulders.

July 2024, Lucy

I really struggled to know what to do when I needed help getting out of debt and it was causing a lot of stress and upset. But after seeing all the good reviews left about Andrew Shepherd I gave him a try and he was nothing short of amazing. He was sensitive to the situation I was in and made sure I had all of the options and information I needed to improve my finances, regardless of if I took his help. However I did and he has been able to put all of my debts into an affordable monthly payment that will allow me to be debt free at a rate I can afford. Taking the confusion and stress away.

July 2024, Chelsea

Would highly recommend using them. Helped me through it all and described everything to me. Help me put all my debt into one affordable payment.

June 2024, Mr Greer

Didn’t expect anyone to be there but there was and that was 7-8pm. Was advised of my options and dealt with immediately. Just need to get information for tomorrow to get things going. Excellent advice.

June 2024, Mr Powell

Struggling with debt. Spoke with advisor and options explained and the most suitable opted for. Straightforward process and clearly explained. Would recommend for those struggling with debt.

June 2024, Mr Doherty

Great communication and a safe place to talk about your financial hardship. Do not judge and help every way they can.

The DRO Process

Opting for a Debt Relief Order needs careful consideration. The decision should only be taken after you have taken independent advice from an FCA regulated practice.  Your affairs will be investigated and if your behaviour prior to the DRO is found to be dishonest (gifting away assets, or being dishonest) you could face a Debt Relief Restrictions Order.