This procedure is designed to assist people who are unable to pay their debts.

A DRO lasts for 12 months, providing that the person entering into the DRO has not given misinformation about the amount of money they owe.

All applications must be done through an approved intermediary, such as the Citizens Advice Bureau or National Debtline and once approved, the DRO is overseen by the Official Receivers Office.


To apply for a DRO, a debtor must have the following:

  • Unsecured creditors of less than £20,000.
  • Assets worth no more than £1,000 in total.
  • The applicant does not have a motor vehicle worth more than £1,000.
  • Disposable income, after paying all household bills, of less than £50 per month surplus.


  • Has not applied for a DRO in the past 6 years.
  • The applicant is resident in England or Wales.
  • The applicant is in financial difficulty and unable to pay his or her debts.

Providing the applicant fits the criteria to enter into a DRO and adheres to its terms for a period of 12 months, then all debts that were notified of the DRO are written off.


The applicant has certain restrictions, whilst in a DRO, that must be adhered to, or it will fail, and creditors will be allowed to pursue for all outstanding monies.

The restrictions whilst in a DRO are as follows:

  • You may not incur credit of more than £500 without informing the lender that you are in a DRO.
  • You may not be a director of a limited company, or involved in its management, without first obtaining leave of the Court to do so.
  • You cannot apply for another DRO for a period of 6 years.
  • You cannot run a business in a different name without informing any person you deal with of the previous business name and the fact that you were in a DRO.

If you have any further enquiries with regard to a DRO, please contact us on 0800 781 0014 and we will be able to direct you towards an approved intermediary, who will be able to assist you with your application.