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Debt Relief Order

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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

Benefits
  • 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.
Disadvantages
  • 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

September 2024, Anita

After getting in contact with an advisor this has been such an easy and smooth process. Being very anxious about it I was put at ease straight away. Highly recommended

September 2024, Robert

All questions were answered professionally. Following my recent experiences with bank ect it was good to speak to people who proved to helpful polite and obviously with good understanding of ways to help potential clients. What a welcome change from total previous non help of banks and credit card manipulator’s. There efforts were successful in that I have decided to accept their help. PS My thanks to Molly and Daisy

August 2024, Brian

Wow, these people are really good. I was struggling to pay off all my debt, one phone call with Richard and now feel like a huge weight has been lifted. The man took me through everything and now I can start my road to being debt-free

September 2024, Elizabeth

Easy to talk to….friendly, very helpful and put my mind at rest….excellent service and very professional. Would highly recommend to help with money worries and debt.

September 2024, Tony

Ben was fantastic! He was no judgemental, polite and speaking with him eased my anxiety and nervousness with making the call. It is hard realising how much debt you have accumulated, and trying to figure out how to get out of it. Ben discussed options with me, we agreed on the best option for my circumstances and I now feel extremely relieved. Thanks again to Ben and the Debt Advisor team

September 2024, Kayley

My advisor Molly was very helpful and nice over the phone and explained everything to help me understand what was best x

September 2024, Tony

Before I phoned I was nervous and panicking about how this company could me in my financial situation … but once I spoke with them on the phone and explained my situation and how I got myself into debt they explained every options how they could me I felt 100%better in myself..I got the help I needed and would recommend this company to everyone who is in financial difficulty

August 2024, Emma

Connor was very reliable, he phoned when he said he would and acted quickly on any information I gave him. He was understanding and helpful, at no point was I made to feel bad for getting into this situation. It is a load off my mind that my problems are being dealt with so professionally.

August 2024, Sharon

My advisor called Tom was great. He talked me through everything and put me at ease. He was very reassuring and confirmed that they could help me and that they would do all the work. I admit that until it’s all complete I’m a bit nervous but Tom is there every step of the way.

August 2024, Ted's Friend

The whole process was long but worth it in the end . Molly was so friendly polite never come across someone with excellent customer service amazing

August 2024, Melanie

Fantastic service. I spoke to Ben and he put my mind at ease. He was so patient and took his time to go through all the options I had available. Times are tough as I lost my job in January so struggled to pay any of my debt. Ben came up with a great solution and I breathed a sigh of relief as I have been so stressed out about paying all my debt without a job. Thank you to Ben for making my life so much easier now. 10 stars for his great service.

August 2024, Connor

Great support. I spoke with Ben today who was a great help. Came to a solution very quickly and was clear about the impact all options could have. I feel relieved to have been passed on to this service and would advice anyone who is struggling to call and have a chat to see what help us out there

August 2024, Shanuykta

Very smooth process. The whole process from start to end was very smooth and Molly was so polite,very helpful with excellent customer service.

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.

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