--- title: "Debt Relief Order (DRO) Explained — Am I Eligible? | CrisisCompass | CrisisCompass" source_url: "https://crisiscompass.co.uk/what-is-a-debt-relief-order" retrieved_by: "AnswerRail Edge Engine v1.1.0-parity-v20 (https://answerrail.com)" level_of_detail: "standard" token_payload_reduction: "92.7%" raw_html_bytes: 117231 compiled_body_bytes: 8539 entities_extracted: 6 currency_recall_static_html: "100%" monitored_currency_tokens: 26 faq_answer_recall_static_html: "100%" monitored_faq_answers: 3 link_recall_static_html: "100%" monitored_content_links: 13 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: "2026-10-25T08:52:38.186Z" cache_age_seconds: 0 origin_cache_control: "public, max-age=0, must-revalidate" --- > **Canonical Source:** [https://crisiscompass.co.uk/what-is-a-debt-relief-order](https://crisiscompass.co.uk/what-is-a-debt-relief-order) > > *What is a DRO, who qualifies, and how to apply. Free guide covering eligibility, costs, restrictions, and what happens after 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. ### Frequently Asked Questions (FAQ) **Q: Does a DRO affect my credit score?** > A: Yes. A DRO will appear on your credit file for 6 years and will make it harder to get credit during that time. However, if you already have defaults, a DRO may actually help by drawing a line under your debts. **Q: Can I keep my car with a DRO?** > A: You can keep your car if it is worth less than £2,000 and is reasonably necessary for your work or daily life. If your car is on finance, the finance company may reclaim it. **Q: What debts are NOT included in a DRO?** > A: Student loans, court fines, child maintenance, and most benefit overpayments cannot be included in a DRO. These debts will remain after the DRO ends. # Debt Relief Order (DRO) — Full Guide A Debt Relief Order (DRO) can write off debts up to £30,000 if you have little income and few assets. It lasts 12 months and is a real alternative to bankruptcy for people on very low incomes. 2 min readLast reviewed: March 2026 [Check Your Financial Situation →](/check)[Calculate Your Budget →](/tools/budget)[Find Benefits You May Qualify For →](/benefits) ## Who Can Apply for a DRO? To qualify for a DRO you must: - Owe **less than £30,000** in total qualifying debt - Have **less than £75 spare income** per month after essential spending - Have **less than £2,000 in assets** (your car is excluded if worth under £2,000) - **Not own property** (including jointly) - **Not have had a DRO** in the previous 6 years - Live or have lived in England or Wales ## What Happens During a DRO - Creditors **cannot chase you** for the listed debts - No interest or charges are added - You **cannot get credit over £500** without telling the lender about the DRO - The DRO lasts **12 months** ## After 12 Months If your circumstances haven't significantly improved, the debts in the DRO are **written off completely**. The DRO stays on your credit file for 6 years from the date it was made. ## How to Apply You can only apply through an **approved intermediary** — usually a debt advice service such as: - StepChange (0800 138 1111) - Citizens Advice - Christians Against Poverty The application fee is **£90**, but some charities can help cover this. ## DRO vs Bankruptcy | | DRO | Bankruptcy | | --- | --- | --- | | Max debt | £30,000 | No limit | | Cost | £90 | £680 | | Duration | 12 months | 12 months | | Assets limit | £2,000 | No limit (but assets may be taken) | | Property | Cannot own | Property may be sold | 🏢 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. ## Frequently Asked Questions Does a DRO affect my credit score? Yes. A DRO will appear on your credit file for 6 years and will make it harder to get credit during that time. However, if you already have defaults, a DRO may actually help by drawing a line under your debts. Can I keep my car with a DRO? You can keep your car if it is worth less than £2,000 and is reasonably necessary for your work or daily life. If your car is on finance, the finance company may reclaim it. What debts are NOT included in a DRO? Student loans, court fines, child maintenance, and most benefit overpayments cannot be included in a DRO. These debts will remain after the DRO ends. ## Related Guides - **[What Happens If Your Credit Card Defaults](/what-happens-credit-card-default)** — Learn what happens when a credit card defaults, how it affects your credit score, and what options you have. Plain-English guide with practical next steps. - **[Dealing with Debt Collectors — Know Your Rights](/dealing-with-debt-collectors)** — Understanding your rights when dealing with debt collectors in the UK. What they can and cannot do, and how to respond effectively. ## Sources & Further Reading [GOV.UK — Debt Management](https://www.gov.uk/options-for-paying-off-your-debts)[FCA Handbook — CONC](https://www.handbook.fca.org.uk/handbook/CONC.pdf)[National Debtline](https://www.nationaldebtline.org/) ### Get a free recovery plan by email We'll send you a personalised action plan with next steps, plus practical tips over the following week. Subscribe This page provides general information only and is not financial or legal advice. For personalised guidance, consider contacting [StepChange](https://www.stepchange.org/) (0800 138 1111) or [Citizens Advice](https://www.citizensadvice.org.uk/) (0800 144 8848). --- ## AI Ingestion & Edge Optimization Provenance (AnswerRail Verified) - **Edge Delivery & Markdown Compilation:** [AnswerRail.com](https://answerrail.com) — Layer-7 AI Crawler Content Negotiation, `/llms.txt` & Byte-0 Schema Compiler - **Dedicated AI Markdown Subdomain:** https://ai.crisiscompass.co.uk/ - **Cryptographic Ingestion Certificate:** https://answerrail.com/verify/crisiscompass.co.uk - **Live Crawler & Referral Telemetry:** https://answerrail.com/stats/crisiscompass.co.uk