Who qualifies for a debt relief order?

A debt relief order is formal insolvency for people with modest debts, almost nothing to sell and no realistic capacity to pay. Twelve months after it is made, the qualifying debts are written off completely.

The eligibility tests

• Qualifying debt of £50,000 or less — the cap was raised from £30,000 in 2024.
• Surplus income of £75 a month or less after essential household expenditure.
• Assets worth no more than £2,000, ignoring a vehicle worth up to £4,000 that you reasonably need.
• You must not own your home — renting is fine.
• Domiciled in England or Wales, or ordinarily resident or trading there in the last three years.
• No DRO, IVA or bankruptcy in the previous six years.

Not every debt qualifies. Student loans, child maintenance, criminal fines, confiscation orders and debts obtained by fraud survive the order. Nor can you pick and choose: every qualifying debt must be listed, and deliberately leaving out a family loan risks being treated as fraud.

Applying and living with the moratorium

You cannot apply directly to the Insolvency Service. An approved intermediary — normally a debt adviser at Citizens Advice, StepChange or National Debtline — assesses your situation and submits the application electronically. There is no application fee; the £90 charge that used to apply was abolished in April 2024. The Official Receiver usually makes the order within about ten working days, and it appears on the publicly searchable Individual Insolvency Register.

During the 12-month moratorium creditors of qualifying debts cannot pursue you, apply to court or send bailiffs, and interest is frozen. In return you must cooperate with the Official Receiver, notify them within 14 days if your circumstances improve — an inheritance, a pay rise pushing surplus income above £75, assets above the limit — and observe the restrictions: no borrowing of £500 or more without disclosing the DRO, no acting as a company director, and no managing a business without permission. Failing to report an improvement is a criminal offence and the order can be revoked.

Discharge is automatic at 12 months with no letter. The DRO stays on your credit file for six years from the date it was made and on the public register for three months after discharge. Self-employed people can qualify, provided total debt stays within the cap and surplus income within £75.