Bankruptcy - Still allowed a bank account?

You can get a basic bank account which has a cashcard only and nother facilities like cheque book, overdraft etc etc. Your existing account will be closed for certain because the the bank will be notified your bankrupt automatically.. If you want to convenience of being able to use a credit card consider getting a prepaid credit card. I have a nationwide basic account (which they will upgrade after perhaps a year) and a cashplus pre paid credit card. I have everything i need for banking. The basic account by the way still allows full internet account use but not all basic accounts allow it and staff at the natwest for instance do not always understand that. Natwest staff told me i had full access to the account but when i read the website and then quoted it back to them they said i would only be able to view the account balance. Fat lot of good that is! Nationwide lets me do everything on the net.

In message , linkuk writes

Only if the bank proved for the debt. If the account is in credit then they wouldnt necessarily find out.

I think they would John. All bankruptcies are cross referenced to names and addresses and branches informed.If there is no debt at that bank they will be allowed a basic account but cheque guarantee and debit cards etc would be stopped.We would be under a duty to disclose any credit balances to the trustee in bankruptcy.

You're right, they'd have to be. Otherwise what's stopping someone stashing a heap of money in one account and pleading poverty?

Andrew McP

In message , Eric Jones writes

Thanks Eric. Is the info picked up from the London Gazette or another source? How does your Bank cross reference the address in a branch based system?

They can do that anyway. Just stash offshore.

When i went bankrupt john my personal account with a few pounds in and no other debts to that bank was closed immediately because the insolvency service informed them. The insolvency service actually asked for all cards and cheques for that account. They then informed them very quickly and the account closed immediately.

As an extra note further to me more recent posting. The paperwork involved made it quite clear that if i failed to disclose any accounts and assets it was a crtiminal offence so i didnt want to create legal problems if they found out at a later date. In the 2 hour interview as part of the process they ask about bank accounts and i just wouldnt have been able to lie to the girl to her face.

That's right. Years ago every branch had it's own copy but now this is done centrally and we get a fax to check out details of accounts if a customer is suspected as gone bankrupt.

In message , Eric Jones writes

Thanks Eric, the system hasnt changed all that much then.None the less, the other poster was claiming that the bank would be told automatically but it seems the old system is still in place in so far as it is still up to the bank to keep an eye on the trusty London Gazatte!

I think we would only be told automatically if the bankrupt had told the trustee of the account.

In message , Eric Jones writes

I agree.

Just to clarify things. I was made bankrupt in nov 2004. They asked for me to tell them all my bank account details and made it clear it was illegal to with hold that information. They also asked that i took all bank cards and cheque books with me to the interview. Within a very short time of the paperwork being sent by me to the insolvency service the bank wrote to me saying the account was closed with immediate effect along with any funds remaining in it would be frozen and would be the property of the invsolvency service to do what they wished with by way or settling any debts.

Things are better now im pleased to say after years of struggling to overcome being stitched up and trying to repay debts. Ots not an experience i wish to repeat though! .

In message , linkuk writes

Bankruptcy is nothing to be ashamed of so long as you werent deliberately deceiving people. Best of luck.

John your right i tried to avoid it for too long for my own good. If had gone bankrupt earlier life would have been easier for a good few years. The lesson i learnt was never trust anyone with more money than i can afford to lose and never ever put anyone before family and home when it comes to money. At least my bankruptcy was pretty muich all business debts and not personal credit cards used on god knows what. What amazed me was the attitude of O2 who i tried to get them to cancel a contract which would enable me to pay that debt off. I made it clear to them that if they didnt cancel then they wouldnt get a penny as i was going to go for bankruptcy. They flatly refused and said they would let the debt build un thank you very much. Needless to say they were on top of the list of creditors along with southeast water who had a similar attitude. I had the last laugh with o2 because long after the bankruptcy they started to harrass me so the insolvency serivce told me to make it clear to them that what they were doing was against the law and i would refer them to the court for being in contempt. They got the hint after that and left me alone. lol