Side-by-side comparison
| Feature | DMP | DRO |
|---|---|---|
| Type | Informal arrangement | Formal insolvency, made by the Official Receiver |
| Maximum debt | No limit | £50,000 of qualifying debt |
| Spare income | Needs a positive surplus | £75 a month or less after essential costs |
| Assets | No limit | £2,000 or less in total, plus a vehicle worth up to £4,000 (more if adapted for a disability) |
| Homeowners | Yes | Usually not — home equity counts as an asset |
| Cost | Free from charities | £0 — the application fee was abolished on 6 April 2024 |
| Monthly payments | Your surplus, shared between creditors | None to the included creditors |
| Length | Until debts are repaid | 12 months, then included debts are written off |
| Interest and creditor action | Interest freeze requested; no legal protection | Included creditors can't charge interest or take action without court permission |
| How to apply | Through a provider or self-managed | Online through an approved intermediary (a debt adviser) |
| Public record | No | Individual Insolvency Register until 3 months after it ends |
| Credit file | Arrangements to pay / defaults (6 years from default) | 6 years from the date of the DRO |
| Restrictions | None | Similar to bankruptcy for 12 months (e.g. borrowing £500+ without telling the lender, acting as a company director without court permission) |
| How often | Any time | Not if you've had a DRO in the last 6 years |
Can I get a DRO? Eligibility checklist
You can usually get a DRO if you can answer "yes" to every point below. If any answer is "no", a DRO is unlikely and a DMP, IVA or bankruptcy may fit better. A debt adviser (approved intermediary) will check the details with you before applying.
| Question | DRO requirement |
|---|---|
| 1. Are your qualifying debts £50,000 or less in total? | Limit raised from £30,000 to £50,000 on 28 June 2024 |
| 2. After essential living costs, is your spare income £75 a month or less? | Worked out from a detailed budget, using standard spending guidelines |
| 3. Are your assets (savings, cash, valuables, property equity) worth £2,000 or less? | Essential household items and tools of your trade don't count |
| 4. Is any vehicle you own worth £4,000 or less? | Higher value allowed if it's adapted for a disability |
| 5. Have you lived, had a property or worked in England or Wales in the last 3 years? | Connection to England or Wales needed |
| 6. Have you not had a DRO in the last 6 years? | You can't have another DRO within 6 years of the last one |
| 7. Are you not currently bankrupt, in an IVA or subject to a bankruptcy petition? | You can't be in another formal insolvency procedure |
| 8. Have you not given away assets or paid off one creditor in preference to others recently? | Transactions in the 2 years before applying are checked |
Check the official criteria on GOV.UK's Debt Relief Order page, and read our full DRO guide.
Who each option suits
A DRO may suit you if:
- You're on a low income or benefits with little or nothing spare
- You rent and have few savings or valuables
- Your situation isn't likely to improve soon
- A DMP would mean token payments for years with no end in sight
- You want legal protection and a clear end date
A DMP may suit you if:
- You have a reasonable surplus each month (above £75)
- You own your home or have savings or assets above the DRO limits
- You owe more than £50,000
- Your job or a professional role would be affected by insolvency
- Your finances are likely to improve and you'd rather repay in full
Neither suits everyone. If you're above the DRO limits but repayment would take many years, compare an IVA with a DMP or look at DMP vs bankruptcy.
Examples
These examples are simplified. Your own result depends on your full budget and debts — use our debt calculator for a rough idea, then get advice.
Common DRO questions
What are the DRO limits in 2026?
For a Debt Relief Order in England and Wales, your qualifying debts must total £50,000 or less, your spare income must be £75 a month or less, your assets must be worth £2,000 or less, and any vehicle must be worth £4,000 or less (unless adapted for a disability). There is no application fee.
How much does a DRO cost?
Nothing. The £90 application fee was abolished on 6 April 2024, and free debt advisers don't charge for applying on your behalf. During the DRO you don't make payments to the creditors included in it.
Is my home classed as an asset for a DRO?
Yes, if you own it. Any equity in a property you own counts towards the £2,000 asset limit, so most homeowners don't qualify. If you rent, your home isn't an asset.
Does cash in the bank count as an asset?
Savings and cash count towards the £2,000 limit. Money in your account that's needed for that month's essential bills is usually treated differently from savings — your adviser will look at your balance on the day you apply and explain what counts.
How many times can you get a DRO?
There's no lifetime limit, but you can't apply if you've had a DRO in the last 6 years. If you need debt relief again within that time, an adviser can look at other options.
Does a DRO write off all my debts?
A DRO writes off the qualifying debts listed in it once the 12-month period ends, as long as you've met the conditions. Some debts can't be included — for example student loans, court fines, child maintenance and most debts from fraud — and you'll still owe those. Make sure every qualifying debt is listed when you apply.
Can rent arrears go in a DRO? Do I still have to pay rent?
Rent arrears can usually be included. But you must keep paying your current rent, and your landlord may still be able to seek possession on the grounds of the arrears — so get advice before you apply if you're a tenant in arrears. See our guide to eviction and rent arrears.
Is a DRO a form of insolvency?
Yes. A DRO is a formal insolvency procedure, like bankruptcy and an IVA. It's recorded on the Individual Insolvency Register and your credit file. A DMP is not insolvency.
Can Citizens Advice help with a DRO?
Yes. You can only apply for a DRO through an approved intermediary — an authorised debt adviser — and Citizens Advice, StepChange and other free services have advisers who can do this. Find one through the MoneyHelper debt advice locator.
I'm on a DMP — can I switch to a DRO?
Yes, if you now meet the DRO criteria — for example after a drop in income. You'd end the DMP and apply through an approved intermediary. Debts in your DMP can go into the DRO. Don't pay off one creditor in full beforehand, as that could count as a preference.
Frequently asked questions
What is the difference between a DMP and a DRO?
A DMP is an informal plan to repay your debts in full with one affordable monthly payment, with no limits and no write-off. A DRO is a formal insolvency option for people with debts of £50,000 or less, £75 a month or less spare and assets of £2,000 or less; it writes the included debts off after 12 months.
Can I get a DRO?
You can usually get a DRO in England or Wales if your qualifying debts are £50,000 or less, your spare income is £75 a month or less, your assets are £2,000 or less (plus a vehicle worth up to £4,000), you've not had a DRO in the last 6 years and you have a connection to England or Wales in the last 3 years.
Is a DRO better than a DMP?
If you qualify, a DRO is often better for people on a low income with few assets, because debts are written off after 12 months at no cost. A DMP is usually better if you have a reasonable surplus, own your home, owe more than £50,000 or need to avoid formal insolvency.
How much does a DRO cost in 2026?
Nothing. The Debt Relief Order application fee was abolished on 6 April 2024, and approved intermediaries such as free debt advice services don't charge to apply for you. You don't make payments to included creditors during the DRO.
Can I have a DRO if I own my home?
Usually not. Any equity in a home you own counts as an asset, and the total asset limit for a DRO is £2,000. Homeowners usually look at a DMP, an IVA or bankruptcy instead.
Does a DMP or a DRO affect my credit file more?
Both affect it for about six years. A DRO stays on your credit file for six years from its date and is on the Individual Insolvency Register until three months after it ends. In a DMP, accounts are usually defaulted and each default drops off six years after its date; a DMP isn't on any public register.
Check if you qualify — free
Only an approved debt adviser can apply for a DRO. Free services can check whether a DRO, a DMP or something else suits you.