The Insolvency Service has written to thousands of people who paid for a debt relief order (DRO) but did not submit their application, urging them to claim a refund of £90 or more.
A DRO is an alternative to bankruptcy for people with less than £50,000 of personal debt. In 2024, the £90 fee to apply for a DRO was scrapped.
Who is eligible for the refund?
Customers who paid the fee for a DRO between 2016 and April 2024 but did not complete their application are eligible for the fee to be refunded. Around £450,000 is available in refunds, according to the Insolvency Service.
Customers are being encouraged to claim their refund if they think they are eligible for one. The Insolvency Service said it has written letters to affected customers several times since November 2025 with details of how to apply for the refund.
Government agency aims to return money
The government agency is hoping to return as much money as possible before the end of 2026. Caroline Shanahan, senior leader in the Personal Insolvency Team at the Insolvency Service, said: "We want to reassure customers that this is a genuine refund and we want them to claim their money back if it is due. We’ve tried to contact customers directly, but as the refunds go back 10 years, we know some people’s contact details may have changed."
"People applying for a DRO may have been struggling financially – hence needing debt relief – so we’re really keen to return money owed to them as soon as possible."
How much can customers claim?
The Insolvency Service said payments were made either in full or in instalments during the application process. Some customers will be due a straight £90 refund, while others may be owed more or less, depending on how much they paid and whether they made multiple incomplete applications.
Anyone who thinks they are owed a refund is asked to contact dro.preorder@insolvency.gov.uk.
