Bank accounts for discharged bankruptcy

When you file for your bankruptcy, your bank will freeze your account or give you very limited facilities. In many cases, banks even close the accounts of the person who has filed a bankruptcy petition in the court. In such a case, you will have to find an alternative for receiving any kind of pay cheques and also to pay your bills. While your bankruptcy petition is in the court, there are basically three options available to you with respect to opening a bank account:
Managed bank accounts for bankrupts with no credit checks.
Prepaid cards without any credit checks.
Basic bank accounts with conditional credit checks.
1. Managed Bank Accounts

A managed bank account is somehow the best bet to perform all necessary banking works even if you file for your bankruptcy. This type of account involves a small fee but they are very popular among the bankruptcy petitioners for their guarantee to be accepted. Even if you go bankrupt, these accounts will work for you. In a managed bank account, you can get the following facilities:
Opening of account without any credit check
A Mastercard – can be used for withdrawing cash or for shopping
Internet banking & Phone banking facilities
No hidden fees
Standing orders
2. Prepaid Cards

You can get a prepaid card. Such a card not only serves as an alternative to your bank account but it can also be helpful in rebuilding your credit worthiness. This card is hundred percent guaranteed for being accepted. No credit check or bank account is required to get this card and you can receive your wages directly into it, just like you used to get it in your bank account. Standing orders can also be scheduled.

3. Basic Bank Accounts

For a bankrupt person, finding a bank account with free of charges can be very difficult. By paying a small fee, you can open a basic bank account. A free bank account can also be available in few cases. However, in case of a bankruptcy, there can be separate types of accounts for a discharged bankrupt and for an undischarged bankrupt.

a. Basic Bank Account for an undischarged bankrupt
For an undischarged bankrupt, the followings are the bank accounts that may be accepted:
Barclays Cash Card Account.
Cashminder Account.
b. Basic Bank Account for a discharged bankrupt
The following bank accounts will be available to you if you have been discharged from your bankruptcy subject to your satisfactory credit report:
Barclays Cash Card Account.
NatWest Step Account.
Royal Bank of Scotland Key Account.
These banks will first go through your Experian credit records before allowing you to open an account with them:
Co-operative Cashminder account.
Nationwide Flex Cash Card.
Bank of Scotland Easycash Account.
Lloyds TSB Bank Account.
Before applying to these banks, you should check your credit report first. A 30-day free trial of your Experian Credit report is available online. If your credit report is not found satisfactory by the banks, your application can be rejected. It’s also important not to apply for an account with a bank until your bankruptcy order has been passed, or else banks may freeze your accounts.

Getting a Bankruptcy Bank Account

At first, you need to decide which type of bankruptcy bank account, you should opt for. You also need to check your credit report whether it has been updated regularly and accurately. Any bank will delve into your credit report and any wrong entry there will risk your chances of opening an account with them. When you are discharged from your bankruptcy, it is essential that your credit report should show this fact. You need to convey to the credit reporting agencies about your bankruptcy discharge status. If your credit record shows your bankruptcy discharge status, your credit score will improve automatically and it will improve your chances of getting a bank account as well.

Once you are assured that you have a convincing credit report, you can approach the bank. For applying for a bank account, you will need a proof of identification and an address proof. You will have to submit your bankruptcy discharge certificate as well.

Features of a Bankruptcy Bank Account

Most banks in UK will offer you a basic account only. They will offer you a bank account with no credit facilities. You can only expect to get a Visa Electron debit card with your account which you can use for cash withdrawal and shopping purposes. At a later stage, after bettering your reputation with the bank, your bankruptcy bank account can be upgraded with a better account.

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