Will a Debt Relief Order Affect My Partner?

When you’re considering a Debt Relief Order (DRO), it’s only natural to wonder how it might impact the people closest to you, especially if you live with a partner or spouse. Although a DRO is granted to an individual, certain financial ties can mean your partner may still feel the effects.

At Helix Law our specialist commercial litigation team don’t advise on DRO’s, but we do advice on insolvency in other contexts- for example if you are being threatened with insolvency but you dispute the debt. If that sounds like your situation, and you’re only considering a DRO even where you don’t think you owe the money or you have a dispute, then dont hesitate to contact us and we will be happy to assist you. 

Can I Get a DRO if I Have a Partner?

Your relationship status doesn’t stop you from applying for a DRO. However, if you live with a partner, their income will usually be taken into account when assessing your household budget.

Having a partner doesn’t mean you’re financially responsible for each other’s debts. However, if your lives are financially tied in any way (like shared bills or loans), it can influence how the DRO is assessed and therefore what kind of impact it might have.

How Debt Relief Orders Work

A DRO is a formal insolvency solution for people with low incomes, minimal assets, and debts under £50,000 (as of 2025). It’s designed to offer a fresh start when repaying debts simply isn’t possible.

To qualify, you’ll need to meet the criteria, which include:

• Owing less than £50,000 in qualifying debts.
• Having no more than £75 in spare income each month after bills.
• Owning assets worth less than £2,000 in total.
• Not being a homeowner.

Once approved, a DRO freezes your qualifying debts for 12 months. If your financial situation hasn’t improved by the end of that period, the debts are written off entirely. During the 12 months, you can’t take out new credit over £500 without telling the lender, and your name will appear on the public Insolvency Register while the DRO is in force, and for three months afterwards.

How a DRO May Indirectly Affect Your Partner: Key Considerations

Joint Debts

If you and your partner share any debts, such as a joint loan, overdraft, or credit card, only your liability is covered by the DRO. The creditor can still pursue your partner for the full amount. Even if you’re no longer required to pay, they are, which can put a strain on household finances or relationships.

This is why it’s important to identify and separate joint debts before applying, and to consider whether alternative debt solutions might offer better protection in shared situations.

Household Income

Although a DRO only wipes out one person’s debts, both your and your partner’s income play a role.

For example, if your partner earns a high income and pays most of the bills, it might appear that you have too much disposable income to qualify for a DRO, even if you personally don’t. You’re still assessed individually, but household income can influence whether a DRO is considered appropriate.

Property

One of the key eligibility criteria for a DRO is that you cannot own your home (or any other property worth more than £2,000). If you live in a property owned solely by your partner, this doesn’t usually affect your eligibility, but you’ll need to make this clear during the application process.

However, if you jointly own property with your partner (even if you don’t live there), you’re unlikely to qualify for a DRO because your share of the equity will usually exceed the asset threshold. If you’re unsure, it’s worth getting legal advice before applying.

Should You Tell Your Partner About a Debt Relief Order?

Technically, you don’t need your partner’s permission to apply for a DRO. But in most cases, it’s a good idea to tell them, especially if you share bills or living expenses.

Being honest gives you both a chance to prepare for any changes, like your name being on the Insolvency Register, or having to disclose your DRO when applying for joint credit in future.

If you’re nervous about having the conversation, a debt advisor can help you plan how to approach it and how to keep your finances stable throughout the process.

Frequently Asked Questions

What Are the Disadvantages of a Debt Relief Order?

A DRO stays on your credit file for six years, making it harder to get credit or open certain accounts. You’ll also appear on the public Insolvency Register and face restrictions on taking out new credit. If your situation improves during the 12 months, the DRO can be cancelled, so it’s not always the right choice.

Will My Debt Affect My Spouse?

Not directly. Unless the debts are joint, your spouse or partner won’t be legally responsible for repaying them. However, if you share financial commitments like rent or utility bills, your partner may need to cover more during the DRO period.

Final Thoughts

A DRO is a valuable tool for people struggling with unmanageable debt, but it doesn’t happen in a vacuum. If you live with a partner or share financial responsibilities, the ripple effects may be felt beyond your own credit report.

If you’re not sure whether a DRO is the right move for your situation or you’re concerned about how it might affect your partner you should contact your local Citizens Advice or a charity like Step Change. An insolvency practitioner might also be a useful professional you can approach to help advise you. As specialist litigation solicitors we don’t advise on DRO’s but if you are being threatened with insolvency and you dispute the debt and don’t think you should have to pay- we’re here to help.