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title: "DRO vs DMP 2026: Debt Relief Order vs Debt Management Plan UK | CrisisCompass | CrisisCompass"
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> **Canonical Source:** [https://crisiscompass.co.uk/compare/dro-vs-dmp](https://crisiscompass.co.uk/compare/dro-vs-dmp)
>
> *Compare a Debt Relief Order (DRO) vs a Debt Management Plan (DMP) under 2026 UK rules. £0 DRO fee, £30,000 debt cap, 12-month write-off vs flexible DMP repayments.*



### 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.



### Frequently Asked Questions (FAQ)

**Q: Is a DRO better than a DMP?**

> A: If you do not own a home, owe under £30,000, and have less than £75 per month in disposable income, a Debt Relief Order (DRO) writes off 100% of qualifying debt after 12 months with £0 monthly payments. A Debt Management Plan (DMP) is better if you own a home, have higher surplus income, or want to avoid the public insolvency register.

**Q: Can I switch from a DMP to a DRO?**

> A: Yes. If your income drops or your DMP will take an unreasonable number of years to repay, an Approved Intermediary at StepChange, Citizens Advice, or National Debtline can transition you from an informal DMP to a statutory DRO for £0.

**Q: Does a DMP write off debt like a DRO?**

> A: No. A Debt Management Plan (DMP) repays 100% of your debt at a reduced monthly rate, whereas a Debt Relief Order (DRO) legally extinguishes all included debts after a 12-month moratorium under Part VIIA of the Insolvency Act 1986.





Statutory Debt Comparison Guide • 2026 Rules

# DRO vs DMP: Debt Relief Order vs Debt Management Plan

Choosing between a **Debt Relief Order (DRO)** and a **Debt Management Plan (DMP)** comes down to whether you need a formal 12-month statutory debt write-off (under £30,000 debt and under £75/month surplus income) or a flexible, non-insolvency monthly repayment arrangement.

Interactive Statutory Eligibility Tool (2026 Standard)

## Check Your UK Debt Solution Eligibility

Calculated instantly in your browser against official Insolvency Service & DWP guidelines.

100% Free & Private

Total Unsecured Debt:£14,000

£1,000£30,000 (DRO Cap)£60,000+

Monthly Spare Income (After essentials):£65 / mo

£0 (DRO Range)£75 (DRO Cutoff)£500/mo

I own a property / have a mortgageVehicle / assets worth under £2,000

Most Suitable Statutory Solution:

### Debt Relief Order (DRO)

Get Free Specialist Review →

With debts under £30,000 and disposable income under £75/month, a DRO can write off 100% of your eligible debt in 12 months with £0 upfront government application fees (2026 rule).

DRO: ✓ Eligible (£0 Fee)

IVA: ✗ Low Debt

DMP: ✓ Viable (Charity)

Bankruptcy: ✗ High Cost

## DRO vs DMP: Key Statutory Differences (2026)

| Statutory Criteria | Debt Relief Order (DRO) | Debt Management Plan (DMP) |
| --- | --- | --- |
| Maximum Debt Limit | Strictly £30,000 (2026 rule) | No upper limit |
| Debt Write-Off | 100% written off after 12 months | 0% written off (repay 100% of principal) |
| Monthly Payment | £0 during 12-month moratorium | 1 affordable monthly payment to charity |
| Disposable Income Cutoff | Must be **under £75/month** | Any surplus income (typically £20–£300+/mo) |
| Homeowners Allowed? | No (Renters / Non-homeowners only) | Yes (Homeowners fully eligible) |
| Interest & Charges Freeze | Guaranteed by statute (Insolvency Act 1986) | Voluntary (most creditors freeze under FCA CONC 7.3) |
| Public Insolvency Register | Yes (Recorded for 15 months) | No (Private informal arrangement) |
| Setup & Management Cost | £0 (Gov fee permanently abolished) | £0 via StepChange, PayPlan, or Christians Against Poverty |

r/

### `r/UKPersonalFinance` Community Reality Check

_"If a Debt Management Plan will take you more than 5 years to clear your balances and you rent with under £75/month surplus income and under £30,000 total debt, a DRO is almost always the smarter route. A DMP keeps you paying for years without legal finality, whereas a DRO clears the slate in 12 months for £0."_

## Check Your DRO and DMP Eligibility Instantly

Take our free Financial Survival Check for an exact calculation against 2026 UK statutory thresholds.

[Start Free Financial Survival Check →](/check)

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