Bank Account for Bankrupts
Can I have a bank account when I’m bankrupt?
On the day you are declared bankrupt all bank accounts you have are frozen for review. It is the bank’s decision whether or not they will continue to do business with you. In the event that they don’t you can arrange for an alternative bank account that will allow you to continue as usual.
What happens to my bank account?
Your bank account will usually be frozen permanently if you have any debts with the bank, such as an overdraft, loans, credit cards. However, some banks just refuse to have accounts with undischarged-bankrupts.
We recommend that you contact your bank once you’re made bankrupt to find out if you’ll be allowed to keep the account. Depending on how long you’ve been with the bank, and what debts you have with them, if any, will determine the outcome.
Most banks will refuse to open an account for an undischarged-bankrupt person, but there are still plenty of facilities available for people in bankruptcy.
What bank can I use?
You can open a Card One Banking account, which does not require a credit check. This account costs £12.50 per month and is ideal for those on a Debt Management Plan, in an IVA or bankrupt.