What is a Bankruptcy Bank Account?

Upon filing for bankruptcy your bank account will be closed. You will therefore need to make alternative arrangements for receiving your wages and paying bills.

You can do this through a bankruptcy bank account, otherwise known as a "basic bank account" or an "instant access account", which will have basic banking facilities.

By following the advice on this page you should avoid some of the disappointments people face when trying to find a bankruptcy bank account.

Who can Provide a Bankruptcy Bank Account?

Undischarged bankrupts

If you have not yet been discharged the following two bankruptcy bank accounts are available:

• Cashminder Account
• Barclays Cash Card Account

If you have been discharged from bankruptcy

If you have been discharged from bankruptcy the following bank accounts may be available. It also shows which credit report the bank will check.

The following banks that will check your Experian credit report:

• Co-operative Cashminder account
• Nationwide Flex Cash Card*
• Bank of Scotland Easycash Account*
• Lloyds TSB Bank Account*

Tip - You can get your free experian credit report online.

The following banks that check your Equifax credit report:

• Barclays Cash Card Account
• NatWest Step Account*
• Royal Bank of Scotland Key Account*

Tip - You can get your Equifax credit report online.

It is important that you check your credit report before applying. Your application may be declined if it contains certain mistakes. Also, do not apply for your bank account until the bankruptcy order has been made otherwise your account may be frozen.

How can I get a Bankruptcy Bank Account?

Decide which of the bankruptcy bank accounts is most suitable for you and check the accuracy of the credit report that will be checked. If you have been discharged from bankruptcy then make sure your credit report shows this. If it doesn't, automatic credit scoring may mean you get declined for the bank account.

Then contact the bank and apply. You will probably have to go to the bank with proof of ID and proof of address. You may also need to present a discharge of bankruptcy certificate.

Under the Banking Code 2005 if the lender has such an account available you should be offered a basic bank account "if you specifically ask and meet the qualifying conditions for one". It is possible that you may not be offered one and if this is the case you may be able to complain under the Banking Code.

Note: Your application is likely to be declined if you have a record of fraud.

What Features will a Bankruptcy Bank Account Offer?

Some accounts offer more features than others, however, you can expect no credit facilities with a bank account after bankruptcy and at most a Solo or Visa Electron card debit card. It may be possible to upgrade from a bankruptcy bank account at a later date.

You should have access to Internet banking, telephone banking, be able to make bill payments and set up direct debits.

The Financial Services Authority publishes a booklet with a list of basic bank accounts produced by the British Banking Association.

Can I stay with my Current Bank?

Following the bankruptcy order it is possible that your current bank may re-open your account or provide you with another. However this may take a few weeks and it is not guaranteed.