Applying for a Debt Relief Order

A Debt Relief Order (or DRO for short) is a debt solution that’s ideal for people who have a relatively low level of debt, who are on a low income and who have few or no assets. It’s a legal process designed to clear most debts included in it. You don’t have to go to court to apply. 

Please note the following information applies only to people living in England, Wales and Northern Ireland. If you are from Scotland, find out more about a Minimal Assets Process.

It’s really important to get some impartial advice first, to decide whether a Debt Relief Order is right for you. 

Once you’ve decided a DRO is right for you, you must apply through an approved intermediary (an approved organisation such as CAP). The intermediary will then submit an application online on your behalf.

Your application may not be accepted if you have paid more to one of your creditors (including friends or family members) than the others, or transferred any assets into someone else’s name.

Some debts, such as TV licence arrears or criminal fines, are not covered by a Debt Relief Order. You will still need to pay these debts.

If you decide to work with us, we’ll let you know whether a DRO would be a suitable way of dealing with your debts. CAP will also arrange to see a copy of your credit report before you apply for a DRO.

Once your application is complete and submitted to the Insolvency Service, they should make a decision within 10 working days. In Northern Ireland, it could take a few weeks, but is often quicker than that.

Let’s take a look at the DRO process – you might be surprised at how simple it is.

The DRO will appear on your credit report for six years from the date it is approved. It will also be listed in the public domain on the Insolvency Service’s online register for 15 months. This record will include your name, date of birth, and address.

For the year of your DRO, you can’t hold certain jobs, including being a solicitor, trustee of a charity or director of a limited company. 

If you wish to borrow another £500 or more, you must tell that creditor that you are already in a DRO.

If you hold power of attorney over another person’s finances (or if someone holds power of attorney over your finances) this would be cancelled. You could reapply after your DRO ends. Financial power of attorney is where you are legally allowed to make decisions on behalf of the other person in relation to their money, or help the other person to do so.