Debt Relief Order
For people on a low income with few assets, usually no monthly payment. If you meet the conditions, the debts in it could be written off after a set time.
Roughly how much do you owe?
It takes about 5 minutes, and there’s no obligation to go ahead.
- About 5 minutes
to answer a few questions online
- No obligation
nothing goes ahead unless you agree
- A partner debt firm
we pass your details to one
- A real person
an adviser can call to talk it through
At a glance
Where it applies: England, Wales and Northern Ireland.
- Where it applies
- England, Wales and Northern Ireland
- How long
- Usually 12 months
- Limits
- Debts up to £50,000 and spare income of £75 a month or less (England and Wales)
- Applied for through
- An approved debt adviser
General information, not advice about your situation. Limits, fees and lengths change, and the rules differ across the UK.
Why people choose it
Built for lower incomes
There may be no monthly payment to make.
Action may stop
The creditors it covers may not be able to collect those debts while it’s in place.
A short, set time
It usually lasts 12 months. After that, the debts in it could be written off if you’ve met the conditions.
How it works
An approved adviser checks if you could qualify
They look at your debts, assets, income and essential costs.
The adviser applies for you
You can’t apply directly.
The order is made
If it’s approved, it covers the debts listed. Some restrictions apply while it’s in place.
It ends, usually after 12 months
If you’ve met the conditions, the debts in it could be written off.
An example of how a Debt Relief Order could work
An illustration for someone on a low income with few assets. If they meet the conditions, the debts in it could be written off after a set time.
Let’s say you owe
- Credit cards
- £1,820.45
- Catalogue
- £2,214.30
- Overdraft
- £960.75
- Buy now, pay later
- £1,106.50
- Store card
- £412
- Total owed
- £6,514
After a Debt Relief Order
In this example you make no payments towards the £6,514 for 12 months. If you meet the conditions, what’s left at the end could be written off.
- Creditors in the order may have to stop collecting while it lasts
- A set period, usually 12 months
- Applied for through an approved debt adviser
An illustrative example, not a real client. Only for people with a low income, few assets and debts under a set limit, and many won’t qualify. There’s no application fee in England and Wales at the moment. Results depend on your circumstances, and no outcome can be promised. Debt Relief Orders are only available in England, Wales and Northern Ireland.
Weigh it up
What could help, and what to know first.
What could help
- Aimed at people with little spare income.
- Creditors it covers may not be able to collect the debts.
- A short, fixed time.
What to weigh up
- Strict limits on debts, assets and income. Many people won’t qualify.
- Restrictions apply, like limits on borrowing and running a business.
- It’s on your credit file for years and on a public register.
- If your finances improve, you may have to pay some back, or the order could be extended.
- Some debts, like court fines, usually can’t be included.
Is it right for you?
It could suit you if
- Your debts are under the limit.
- You have little spare income after essential costs.
- You own very little of value.
It may not be right if
- Your debts, assets or spare income are over the limits.
- Most of what you owe is a kind of debt it can’t include.
- You expect your finances to get better soon.
Other routes to compare
No one option suits everyone. People often compare these.
Bankruptcy
A legal process when you can’t pay back what you owe
Individual Voluntary Arrangement
One affordable monthly payment, usually for five years
Debt Management Plan
One monthly payment shared between the people you owe
Questions people ask
Who can apply for a Debt Relief Order?
Someone on a low income with few assets, living in England, Wales or Northern Ireland. In England and Wales the limits are currently debts up to £50,000, spare income of £75 a month or less and assets under £2,000. Northern Ireland’s are different, and an approved adviser checks them.
Can I apply myself?
No. It has to go through an approved debt adviser.
Will it affect my credit file?
Yes. It’s recorded for years, and on a public register.
What if my income goes up during the order?
Tell the adviser. You could be asked to pay some of the debts back, or the order could be extended.
Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. MoneyHelper
Want to talk it through?
Answer a few questions and an adviser from one of our partner debt firms can call you. There’s no obligation to go ahead.