UK Debt Relief Order (2026/27): No Fee, £50,000 Limit
Debt Relief Orders in England and Wales: no fee since April 2024, debts under £50,000, under £2,000 of assets, a vehicle under £4,000, and how the 12-month DRO works.
Eligibility criteria
| Criterion | Limit | Note |
|---|---|---|
| Total debt | Less than £50,000 | Raised from £30,000 in June 2024 (Insolvency Service) |
| Spare income | Usually less than £75 a month | After normal household expenses; a debt adviser works this out with you |
| Savings and valuables | Less than £2,000 in total | You must not own your home |
| Vehicle | Worth less than £4,000 | Raised from £2,000 in June 2024 |
| Where you live | England or Wales | Lived or worked there in the last 3 years. You cannot get a DRO if you live in Scotland or Northern Ireland |
| Previous DRO | None in the last 6 years | |
| Other insolvency | Not currently bankrupt | And no interim order or Individual Voluntary Arrangement |
Application process
- Contact an approved debt adviser - free debt advice is listed by MoneyHelper. You cannot apply for a DRO on your own.
- Gather details - your income, regular expenses, debts and anything of value you own, so the adviser can check the limits.
- The adviser submits the application to the Insolvency Service. There is no fee.
- DRO granted - for 12 months you stop paying the listed debts, including interest.
- Follow the restrictions - no borrowing over £500 without disclosing the DRO, no acting as a company director, and report significant changes in your finances.
- End of the DRO period - the restrictions end and you no longer have to pay the listed debts.
Related guides
- UK Debt Prioritisation 2026/27 - priority debts + free advice routes.
- UK IVA vs Bankruptcy 2026/27 - alternative insolvency routes.
- UK Universal Credit + Working 2026/27 - income support pathway.
- UK Credit Score 2026/27 - rebuilding after insolvency.
Frequently asked questions
What is a Debt Relief Order?
A way to deal with debts in England and Wales if you owe less than £50,000, have little spare income and do not own your home. You stop paying the debts listed in it, including interest, for 12 months and follow certain restrictions; at the end, if your situation has not changed, you no longer have to pay those debts. The £90 fee was abolished from 6 April 2024, so a DRO costs nothing (Insolvency Service).
Who qualifies for a DRO?
You must owe less than £50,000 in total, have savings or valuables worth less than £2,000, own a vehicle worth less than £4,000 if you have one, not have enough left at the end of the month to repay your debts (usually less than £75 spare a month), have lived or worked in England or Wales in the last 3 years, not be bankrupt or in an IVA or interim order, and not have had a DRO in the last 6 years (gov.uk).
Which debts cannot be included in a DRO?
You still have to pay child maintenance or anything owed under family proceedings, student loans, budgeting and crisis loans from the Social Fund, debts secured against your possessions, court-ordered damages for personal injury or death, and unpaid TV licence fees (Insolvency Service). Ask a debt adviser how any other debt you have is treated.
How do I apply for a DRO?
You cannot apply on your own: you have to go through an approved debt adviser, who checks whether a DRO is right for you and submits the application to the Insolvency Service. You do not pay for a DRO. MoneyHelper lists where to get free debt advice (gov.uk).
What restrictions apply during a DRO?
You cannot borrow more than £500 without telling the lender about your DRO, or write cheques without enough funds, and you must tell the bank if you apply for an overdraft or a new account. You cannot act as a company director, or create, manage or promote a company without the court's permission, and you cannot run a business under a different name without telling the people you deal with. Breaking the restrictions can lead to prosecution, and a Debt Relief Restrictions Order can extend them for 2 to 15 years (Insolvency Service).
What happens at the end, and if things change?
At the end of the DRO period the restrictions end and you do not have to pay the debts or interest listed in it. During the DRO you must tell the Insolvency Service about a significant change in your finances, such as an inheritance or an increase in income. If the DRO is cancelled (revoked) you have to start paying the listed debts again, plus interest that built up. The DRO goes on the Individual Insolvency Register until 3 months after it ends and stays on your credit record for 6 years (gov.uk, Insolvency Service).
DRO vs IVA vs bankruptcy?
A DRO is free and lasts 12 months, but only fits the limits above. An IVA is an agreement with your creditors, set up through an insolvency practitioner, to pay all or part of your debts; it goes on the Individual Insolvency Register until 3 months after it ends. Bankruptcy costs £680 to apply online in England and Wales, and normally ends one year after it starts (Insolvency Act 1986 s.279), though an income payments agreement can last up to 3 years (s.310A). Each stays on your credit record for 6 years. Get free advice before choosing.
Will a DRO affect my job?
The DRO itself bars you from acting as a company director. Some regulated professions and employers have their own rules about insolvency, so check your contract and any professional body's rules, or ask a debt adviser, before you apply.