--- title: "Debt Relief Orders: write off up to £30k for just £90 | CrisisCompass Blog | CrisisCompass" source_url: "https://crisiscompass.co.uk/blog/dro-debt-relief-order-guide" retrieved_by: "AnswerRail Edge Engine v1.1.0-parity-v20 (https://answerrail.com)" level_of_detail: "standard" token_payload_reduction: "92.8%" raw_html_bytes: 103928 compiled_body_bytes: 7450 entities_extracted: 5 currency_recall_static_html: "100%" monitored_currency_tokens: 25 link_recall_static_html: "100%" monitored_content_links: 14 omitted_dynamic_states: ["non_default_tab_panels", "volume_slider_tiers"] conversion_notes: "Origin renders alternate tabs and volume pricing sliders via client-side JavaScript; serving default static AST state." rfc_compliance: "RFC 9110" last_verified_at: "2026-10-25T08:52:38.137Z" cache_age_seconds: 0 origin_cache_control: "public, max-age=0, must-revalidate" --- > **Canonical Source:** [https://crisiscompass.co.uk/blog/dro-debt-relief-order-guide](https://crisiscompass.co.uk/blog/dro-debt-relief-order-guide) > > *A DRO is one of the most underused debt solutions in the UK. If you qualify, it could clear your debts in 12 months.* ### Organization: CrisisCompass | Field | Value | | :--- | :--- | | **Organization** | CrisisCompass | | **Official Website** | https://crisiscompass.co.uk | | **Overview** | Independent UK crisis management, financial support guidance, and emergency contingency portal. | ### Entity: CrisisCompass | Property | Detail | | :--- | :--- | | **Type** | WebSite | | **Name** | CrisisCompass | ### Frequently Asked Questions (FAQ) **Q: Is CrisisCompass free?** > A: Yes. All core tools — Survival Check, Benefits Finder, Hardship Letter Generator, Budget Calculator, Debt Priority Checker, and AI Chat — are completely free. Optional premium PDF documents start from £2.99. **Q: Is CrisisCompass financial advice?** > A: No. CrisisCompass provides general information and tools. For personalised financial advice, we recommend contacting StepChange (0800 138 1111) or Citizens Advice (0800 144 8848). **Q: Is my data safe?** > A: We store data locally in your browser wherever possible. The Financial Survival Check results are never saved to our servers. See our Privacy Policy for full details. Debt Solutions # Debt Relief Orders: write off up to £30k for just £90 5 February 2025 · 2 min read Share: A Debt Relief Order (DRO) is one of the most underused — and most powerful — debt solutions available in the UK. ## What is a DRO? A DRO freezes your debts for 12 months. If your situation hasn't significantly changed after 12 months, all qualifying debts are \*\*written off completely\*\*. ## Who qualifies? You need to meet all of these criteria: - Total debts of \*\*£30,000 or less\*\* - Available assets worth \*\*£2,000 or less\*\* (excluding a reasonable car) - Disposable income of \*\*£75 or less per month\*\* after essential expenses - You haven't had a DRO in the last 6 years ## What debts does it cover? A DRO covers most debts including: - Credit cards and store cards - Personal loans and overdrafts - Council tax arrears - Utility bill arrears - Catalogue debts It does NOT cover: - Student loans - Court fines - Child maintenance - Some secured debts ## How to apply You can only apply through an \*\*approved intermediary\*\* — typically a debt advisor at: - Citizens Advice - StepChange - National Debtline The application fee is \*\*£90\*\* (which can be paid in instalments). There is no court appearance. ## What are the consequences? - Your DRO will appear on your \*\*credit file for 6 years\*\* - You will find it difficult to get credit during this period - Your name will appear on the \*\*Insolvency Register\*\* - Some professions may be affected ## Is a DRO right for you? A DRO is best for people who: - Have relatively low debts that they genuinely cannot repay - Have very low disposable income - Don't own significant assets - Want a clean break from debt If your debts are higher than £30,000 or you have more assets, an IVA or bankruptcy might be more appropriate. Always get free advice first. ## Free tools mentioned in this article [Financial Survival Check](/check)[Hardship Letter Generator](/tools/letters)[Benefits Finder](/benefits)[Budget Calculator](/tools/budget) 🏢 UK Limited Company Director Triage • Finance Act 2009 s.108 & ERA 1996 s.166PAYE • VAT • Corporation Tax • Bounce Back Loans ## Running a Limited Company with HMRC Arrears or Business Debt? Calculate your monthly **HMRC Time-to-Pay (TTP)** instalment and check if you qualify for a tax-free **Company Director Statutory Redundancy & Notice Payout** from the government's National Insurance Fund (Employment Rights Act 1996 s.166) if your company ceases trading. HMRC / Company Debt£28,000 £3,000£30k Express Line£150,000+ Years as PAYE Director6 years 0 yrs2 yr Statutory Min20 yrs Weekly Gross PAYE Salary£520/wk £180/wk£700 Statutory Cap Option A: Keep Trading via HMRC Time-to-Pay ~£2,422 / month over 12 months ✓ Under £30,000 threshold: Eligible for HMRC Express Self-Serve / Direct Debit Time-to-Pay arrangement without full security. Option B: Estimated Director Redundancy Claim (Gov RPS) £6,552 Tax-Free Estimate Includes ~£3,900 statutory redundancy + ~£2,652 statutory notice pay from the National Insurance Fund (Form RP1/RP2). Often covers 100% of liquidation costs. 📄 Download B2B HMRC Time-to-Pay Proposal, Cashflow Table & s.172 Board Minute (£29 Instant Pack)🏪 Commercial Rent (CRAR) & Trade Creditor Pack (£19) Need free confidential charity guidance for a sole trader or SME? Call **Business Debtline** free on [0800 197 6026](tel:08001976026) (uk\_b2b\_corporate\_insolvency self-serve governance triage). 🏠 Ofgem ECO4 & £7,500 Boiler Upgrade Scheme (BUS) • 2026 Funding Open12 Verified UK MCS-Accredited Installers ### Cut Monthly Energy Bills by £650–£1,100/yr: Check £7,500 Heating & ECO4 Grant Eligibility If anyone in your household receives **Universal Credit, Pension Credit, PIP, Attendance Allowance, Carer's Allowance, or Council Tax Reduction** (or your household income is under £31,000 under ECO4 Flex), you may qualify for 100% funded insulation, solar, or the **£7,500 Government Boiler Upgrade Grant** with zero repayment required. ✓ £7,500 BUS Voucher✓ ECO4 Flex Low-Income Route✓ Direct MCS-Certified Assessment Check My Postcode for £7,500 / ECO4 Grants →Takes 45 seconds • No impact on credit score - **[Check Unclaimed Council Credit Balances & Band Reductions (CouncilCredit.co.uk)](https://councilcredit.co.uk?utm_source=crisiscompass&utm_medium=sovereign_hub)** — SI 1992/613 Reg 14 • Household & CommercialSearch Ledger →UK councils hold over £310m in unrefunded credit balances from closed accounts, overpayments, and backdated Band A–H revaluations. Check if your council owes you a BACS refund. - **[Reclaim Backdated Small Business Rates Relief (RatesReclaim.co.uk)](https://ratesreclaim.co.uk?utm_source=crisiscompass&utm_medium=sovereign_hub)** — LGFA 1988 s.43(4B) • UK Shopfronts, Workshops & OfficesCheck Relief →Sole-property UK businesses with a Rateable Value ≤ £12,000 qualify for 100% Small Business Rate Relief. Audit your property or refer a local business for a £75–£150 partner referral reward. ## Recommended free services Trusted organisations that can help — all completely free to use. [📞 StepChange Free debt advice · 0800 138 1111 ](https://www.stepchange.org/)[📊 ClearScore Free credit score & report ](https://www.clearscore.com/)[🏗️ Loqbox Build your credit score for free ](https://www.loqbox.com/)[⚖️ Compare Debt Solutions IVA vs DRO vs Bankruptcy vs DMP ](/compare) ### Get weekly financial tips Practical advice on debt, benefits, and building a stronger financial future. Join 2,000+ readers. Subscribe ## Related articles - **[The 12-month financial recovery plan: month by month](/blog/one-year-financial-recovery-plan)** — Recovery - **[From £22,000 in debt to debt-free: how real people recovered](/blog/debt-story-recovery-possible)** — Recovery [Take the Survival Check](/check)[Compare Debt Solutions](/compare)[Explore Free Tools](/tools) Some links on this page may be affiliate links. We only recommend services we genuinely trust. Using these links helps fund CrisisCompass at no extra cost to you. 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