Bankruptcy Bank Accounts

Basic Bank Accounts

We receive a lot of calls and emails from the public asking about; “What are their bank account options if they file bankruptcy” and also “are there banks that offer bank accounts for people that have filed bankruptcy”

One of the problems that come to light after a person decided to go bankrupt is the lack of decent bankruptcy bank accounts available for bankrupts.

Every one needs a bank account to bank wages or state benefits. The answer is open a basic bankruptcy level bank account. A basic bankruptcy bank account allows you to receive money and pay bills and is the first step towards opening a regular current account later on.

With a basic bankruptcy bank account you can:

• have your wages, benefits, State pension or tax credits paid directly into your bankruptcy bank account;
• pay in cheques for free (but remember you will have to wait a few days before the money is available for you to spend);
• take money out at cash machines with a cash card (this is usually free, but some cash machines make a charge);
• pay your bills by direct debit – meaning you could pay less for some things – especially gas,electricity or telephone.

Some banks will also let you pay by standing order. Lots of banks and some building societies offer basic bankruptcy bank accounts

Bankruptcy Bank Account Questions

• What happens if I only have £6 left in my bankruptcy bank account and the cash machine only gives £1 notes?
• Can I open a basic bankruptcy bank account whatever my credit history?
• How do I keep track of my money with a basic bankruptcy bank account?
• What if there isn’t enough money in my bankruptcy bank account to pay my direct debit or standing order?
• What proof will I need to open a bankruptcy bank account?
• Which banks offer bank accounts to bankrupts?

Q. What if there isn’t enough money in my account to pay my direct debit or standing order?
A. If your account has a buffer zone, the machine will let you have £10 even if there is only £6 in your account.
The bank will not charge you for going overdrawn up to the buffer-zone limit. If it doesn’t have a buffer zone, you won’t be able to take out £6. You can take out the exact amount of money you have in your account over the counter either at your bankor building society or at a Post Office® branch.

Q. Can I open a basic bank account whatever my credit history?
A. Almost everybody should be able to open a basic bank account. The bank or building society may want to check our credit history to see if you have any county court judgments (CCJs) against you or have been made bankrupt. But even if you have, you may still be able to open an account

Q. How do I keep track of my money with a basic bank account?
A. You will get a statement in the post, usually once every three months, showing what money has been paid in and what has gone out.
With most basic bank accounts you can check how much money you have and get a mini statement from a cash machine showing the most recent transactions. Most accounts will also let you check your balance at a Post Office.

Q. What if there isn’t enough money in my account to pay my direct debit or standing order?
A. You can’t go overdrawn with a basic bank account because you won’t get an overdraft limit. But if you pay your bills by direct debit or standing order and there isn’t enough money in your account, then the bank will not make the payment. You may be charged a fee or the bank may cancel your direct debit or standing order, or even close your account. You will still have to pay the bill as well as any charge. It is really important to make sure you have enough money in your account to pay your bills.

Q. What proof will I need to open an account?
A.The law says that banks and building societies have to identify their new customers. This is to help stop criminal activities like money laundering. They will explain which documents they will accept as proof of your identity, although his may vary from one firm to another.

They may ask you for a government issued doument:

• with a photograph (such as a valid passport)
• without a photograph (such as a valid old-style driving licence) plus another document from an approved source.
• government department or local council confirming your right to State benefits (for example, pension, council tax or housing benefit)
• care home manager or warden of sheltered accommodation or refuge confirming your identity. They may even accept a letter or statement from an ‘appropriate person’ who knows you, such as a social worker or teacher, stating that you are who you say you are.

Q. Which banks offer bank accounts to bankrupts?
A. If you have not yet been discharged the following bankruptcy bank accounts are available:

• Co-operative Cashminder bankruptcy bank Account
• Barclays Cash Card bankruptcy bank Account
• Nationwide bankruptcy bank accouny

Basic bankruptcy bank accounts were set up through a Government scheme to help poorer families and those who have problems opening a normal bank account. The scheme is aimed at everyone access to banking facilities.

back to top

What is bankruptcy? | Bankruptcy explained | The bankruptcy process | The effects of bankruptcy | The disadvantages of bankruptcy | How do I petition for my own bankruptcy? | What happens after bankruptcy? | What are the alternatives to bankruptcy?| Can my bankruptcy be reversed? | Can my bankruptcy be cancelled? | New legislation - the Enterprise Act 2002? | Frequently asked questions | Bankruptcy additional facts | UK Personal Bankuptcy | Bankruptcy Records | Bankruptcy Advice | What happens when you visit the Official Receiver's Office? | What happens to my home in bankruptcy? | What happens to my pension in bankruptcy? | When will my bankruptcy end? | How am I made Bankrupt? | Where is the Bankruptcy Order made? | Who will deal with my bankruptcy? | Who do I need to tell if I go bankrupt? | What are your duties as a bankrupt? | What effect will Bankruptcy have on your credit rating? | Payment to your creditors in Bankruptcy | What happens to your assets in bankruptcy? | What is a bankruptcy restriction notice? | What is a form J restriction? | What happens in bankruptcy if I rent my house? | What happens to your life assurance policy in bankruptcy? | What happens to your business in bankruptcy? | What happens to your wages in bankruptcy? | What are bankruptcy restrictions orders and undertaking? | Debts you have incurred after you have been made Bankrupt | What are the advantages of going Bankrupt? | What are the disadvantages of going Bankrupt? | What are the implications of  Bankruptcy? | Jersey - a guide to Bankruptcy Law | Bankruptcy Law | Student Loans and Bankruptcy | Bankruptcy Forms | Avoid Bankruptcy | Business Bankruptcy | Accountant in Bankruptcy | Bankruptcy Lawyers | Bankruptcy Search | Bankruptcy in the UK | Declaring Bankruptcy | Filing for Bankruptcy | How to go Bankrupt | Insolvency Practitioners | Voluntary Bankruptcy | How do I avoid Bankruptcy? | Consequences of Bankruptcy | Borrowing after Bankruptcy | Bankruptcy and Student Loans | Annulling the Bankruptcy | Bankruptcy - The Court | Bankruptcy Bank Accounts | Debt Resolution Forum | Mortgage after Bankruptcy | Personal Bankuptcy | Bankruptcy Mispellings