Whats the difference between a debt management plan and a debt relief order?

23 Sept 2026, 09:27
Q A Reader Asker

Whats the difference between a debt management plan and a debt relief order?

A PoundWise Team Answered by

A debt management plan (DMP) is an informal arrangement to repay your debts through affordable regular payments, usually arranged with a debt advice organisation; creditors do not have to accept it or freeze interest. A debt relief order (DRO) is a formal insolvency solution for people meeting specific limits on debts, income and assets, and qualifying debts may be written off after the order period if the conditions are met. A DRO has legal restrictions and can affect your credit record, while a DMP does not usually write off what you owe. An approved debt adviser can assess your circumstances, and you can check current criteria on GOV.UK.

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