Debt Relief Order (DRO) Eligibility Calculator 2026

A DRO is a formal debt solution for people in England and Wales with low income, few assets, and debts under £30,000. It freezes qualifying debts for 12 months and writes them off if your circumstances do not improve.

You must: (1) owe £30,000 or less in qualifying debts, (2) have assets worth £2,000 or less (a vehicle worth up to £2,000 needed for work is excluded), (3) have £75/month or less in surplus income, (4) live in England or Wales, and (5) not have had a DRO or bankruptcy in the last 6 years.

A DRO costs £90 — payable to an Approved Intermediary (a debt charity adviser like StepChange). There is no longer a separate Insolvency Service fee. The £90 can be paid in instalments.

Most unsecured debts: credit cards, personal loans, overdrafts, payday loans, utility arrears, council tax arrears, HMRC tax debts. Excluded: student loans, court fines, child maintenance, fraud debts, and debts incurred through fraud.

Creditors cannot take enforcement action, add interest, or contact you about the included debts. If your circumstances improve (income rises significantly or you receive a windfall), HMRC can revoke the DRO.

A DRO stays on your credit file for 6 years from the date of the order. You cannot obtain credit of £500 or more without telling the lender you are subject to a DRO during the moratorium.

Bankruptcy involves a more formal insolvency process with a trustee managing your affairs, usually lasting 12 months but with restrictions for 3 years. It has no debt limit and costs £680. A DRO is simpler, cheaper (£90), and suitable for those with very low income and assets.

The debt limit was raised from £20,000 to £30,000 for DROs in England and Wales, effective from April 2024. This makes DROs available to more people who would previously have needed to consider bankruptcy.