For many people, especially those in vulnerable situations, financial difficulty can often include unpaid bills and credit damage, as well as a desperate need for support. When debt becomes overwhelming, a Debt Relief Order (DRO) can offer a much-needed fresh start, but it’s not without consequences.
A recent Money Box episode on BBC Radio 4 shed light on the barriers many domestic abuse survivors face when trying to access DROs. For instance, they have to deal with the emotional and practical risks of being publicly listed on the UK Insolvency Register.
While DROs are designed to help people with low income and minimal assets, these people will also have their personal details publicly available. This can present a huge barrier to the very people who need support the most, reaching out for help.
If you’ve been asking “how does a Debt Relief Order work?”, this blog explains it and the implications of being added to the Insolvency Register. We’ll also discuss why reforms may be urgently needed to better protect the most vulnerable, especially those navigating both
emotional trauma and financial instability.
What is a Debt Relief Order?
A Debt Relief Order is a formal solution for people struggling with serious debt but who have little to no income or assets.
DROs offer a fresh financial start to those who meet specific Debt Relief Order criteria. Those criteria are:
You should have debts of £50,000 or less,
Your total assets should be worth under £2,000,
You should have less than £75 in monthly disposable income.
How does a Debt Relief Order work? A DRO freezes debts for 12 months, after which they’re usually written off, provided the person’s financial situation hasn’t improved. It’s more affordable than bankruptcy and, as of April 2024, there’s no fee for applying for a DRO.
It’s an accessible option for many but has its drawbacks too, particularly the requirement for personal details to be published on the UK Insolvency Register, which can raise safety concerns.
How to Apply for a Debt Relief Order?
Applying for a Debt Relief Order has to be done through an approved intermediary - usually a debt adviser from a charity or authorised organisation like StepChange, Citizens Advice, or National Debtline.
The process will involve sharing full details of your income, debts, assets, and living situation. If you meet the eligibility criteria, the adviser will submit the application to the Insolvency Service on your behalf.
Once approved, your debts will be frozen for 12 months, giving you time to sort out your finances and get back on track. After that period, if your situation hasn’t changed, most debts included in the DRO will be written off.
The qualifying debts for a DRO include credit cards, overdrafts, loans, rent arrears and utilities, council and income tax, ‘buy now pay later’ agreements, benefit overpayments, and debts to friends and family.
Why the UK Insolvency Register Matters
When someone is granted a Debt Relief Order, their name, date of birth, and address are added to the Insolvency Register in the UK. This is a publicly accessible online database managed by the Insolvency Service. It includes:
Individuals who are currently bankrupt
Those with DROs or Individual Voluntary Arrangements (IVAs)
Relevant details like the start and end dates of their orders
The register is meant to provide transparency around personal and business insolvency, but for many, it can feel like a breach of privacy. This is particularly concerning for survivors of domestic abuse, who may be trying to keep their location private for safety reasons. Being listed can expose them to potential harm or unwanted contact.
While the register serves a legal purpose, critics argue that more discretion is needed to protect vulnerable people. This is especially true for those who are using insolvency routes like DROs as a way to recover financially and personally.
The Hidden Impact of Being Listed
While a DRO can ease your financial stress, being added to the UK Insolvency Register carries consequences that aren’t always obvious.
One concern raised in the Money Box episode is that being listed publicly can jeopardise survivors' safety, especially if their abuser is still trying to track them down. Having personal details like their names and addresses made public can be terrifying, and it can deter them from applying for the very help they need.
Beyond safety concerns, there are broader implications. For instance, a DRO remains on your credit file for 6 years, significantly impacting your ability to access credit, loans, or even housing.
Additionally, some employers, particularly in financial services or positions that require security clearance, may check the register as part of background vetting, which could affect job opportunities.
Although the DRO provides a lifeline, its public nature and long-term visibility can cause many burdens, which is why you need to weigh the Debt Relief Order pros and cons before you pick this path.
What You Can Do
If you're struggling with debt, you don’t have to face it alone. You can reach out to trusted organisations like StepChange, Citizens Advice, or National Debtline for free, confidential support. They’ll assess your situation and guide you through the Debt Relief Order process if it’s the right fit.
If you’re in a vulnerable situation, you can look for specialist charities that offer both emotional and practical help. Many experts and advocates are now calling for policy changes, such as confidential DRO listings, to make a difference.
Whether you're seeking help for yourself or supporting someone else, knowing your rights and options is the first step toward long-term financial recovery.
For Short Term Financial Support, Think Salad
If you were wondering how Debt Relief Orders work, we hope this guide helps. While DROs are great tools for those in financial distress, the public listing on the UK Insolvency Register can feel overwhelming, making it even harder to seek help.
That's why accessible, responsible lending and clear financial guidance are more important than ever. That’s where we come in.
At Salad, we believe everyone deserves fair financial support, without hidden barriers and regardless of their credit scores. We’re committed to helping people make informed choices and build a healthier financial future, especially when life takes an unexpected turn.
Using Open Banking technology, we analyse your current financial situation and spending habits to gauge your loan affordability and provide you with the support you need. As an FCA-regulated and authorised lender, you can trust us to keep your financial data safe.
If you need financial support, consider applying for a personal loan, and for more blogs like this one, visit our blog page.
