The basicsWhat is a DRO?
A DRO (Debt Relief Order) is a formal, simplified way of dealing with a debt
problem designed for people who have a low income, few assets and relatively modest
debts. Once the application is approved, the unsecured debts it covers are
frozen for 12 months (the moratorium). During that time creditors cannot
pursue repayment or take legal action, and at the end of the moratorium the debts covered are
written off in full. The whole procedure is cheaper and simpler than
standard bankruptcy.
BenefitsWhy consider a DRO?
For people on a low income, a DRO is often the most accessible route to a fresh financial
start without having to declare bankruptcy. The main reasons people choose it:
Advantages of a DRO
- No fee — the application is currently free, unlike bankruptcy.
- Fast, straightforward process — an application can be approved in around 60 days.
- Protection from collection — during the moratorium creditors cannot pursue repayment or enforce the debt.
- Full write-off — after the 12-month moratorium, the debts covered by the DRO are written off in full.
Drawbacks and risks
- Strict limits — a DRO has firm debt, income and asset thresholds that cannot be exceeded.
- Not for homeowners — you cannot use a DRO if you own your own property.
- Impact on your credit score — the entry stays on your credit history for around 6 years.
- Public register — your details are recorded on the public Individual Insolvency Register.
EligibilityIs a DRO right for you? Who qualifies
A DRO is intended for people who cannot afford even minimal repayments and whose financial
position is modest. To qualify for a DRO you normally have to meet all of the
following conditions:
- You have lived or worked in England or Wales in the last 3 years (a separate variant of the DRO also covers Northern Ireland).
- You have unsecured debt of under £50,000 that you are unable to repay.
- Your income after living costs is £75 a month or less.
- Your assets are worth no more than £2,000, and your vehicle no more than £4,000.
- You are not currently bankrupt or in an IVA, and you have not had a DRO in the last 6 years.
UK coverageWhich UK nations does a DRO apply in?
The DRO applies in England and Wales; Northern Ireland
has its own variant of the DRO based on separate legislation. In Scotland
the DRO does not exist — the equivalent for people on a low income is the
Minimal Asset Process (MAP), a simplified form of Sequestration. The
current limits are debt of up to £50,000, low surplus income and no assets
of significant value.
The processHow it works, step by step
We go through the whole process with you — no pressure, at your own pace. It looks like this:
- Free consultationYou answer a few questions about your financial situation and we check whether you meet the DRO limits.
- Talk to an adviserWe discuss your goals and the realistic options, and verify the value of your assets, your income and your level of debt.
- Submitting the applicationThe DRO application is submitted by an Approved Intermediary, who assesses your eligibility.
- 12-month moratoriumFor a year you make no payments towards the debts covered, and creditors cannot enforce them.
- Debts written offOnce the moratorium ends, the debts covered by the DRO are written off in full.
AfterwardsWhat happens once the DRO ends?
After the 12-month moratorium has been completed successfully, the unsecured debts covered
by the DRO are written off in full. It is worth remembering that certain
obligations — such as court fines, child maintenance or some student loans — usually cannot be
included in a DRO. Open Finance will guide you through the entire process, from the first
conversation to closing the case.
SupportYou do not have to face debt alone
Dealing with debt can feel overwhelming — but the sooner you ask for help, the easier it is
to find a solution. There are no “magic ways” to make debt disappear — only
legal, proven routes, and a DRO is one of them. A free consultation with our
adviser carries no obligation and does not affect your credit score until you accept the
solution proposed.
