England, Wales & NI
Debt Relief Order
For people on a low income with few assets. Qualifying debts are written off after twelve months.
- Typical term
- 12 months
- Type
- Formal insolvency
- Available in
- England, Wales & NI
What it is
A Debt Relief Order is a lower-cost alternative to bankruptcy for people with limited income and little of value. You make no payments during the moratorium period, and qualifying debts are cleared at the end of it.
Who it tends to suit
- You live in England, Wales or Northern Ireland
- You have very little spare income each month
- You do not own a home and have limited assets
Benefits
- No monthly payments to creditors
- Qualifying debts written off after twelve months
- Creditors must stop contacting you
- A single, modest application fee
Things to weigh up
- Strict eligibility limits on debt, income and assets
- Publicly recorded on the Individual Insolvency Register
- Stays on your credit file for six years
- Some debts, such as student loans and court fines, are excluded
If you own your home
Homeowners generally cannot apply. If you own property, a different route will usually fit better.
Not sure this is the right fit?
The finder compares this against every other UK route based on where you live and what you owe.
Compare my optionsMay not be suitable in all circumstances. Fees apply and your credit rating may be affected. Arcadia is an information service — always consider free, independent advice before deciding.