In 2016 the major UK banks all introduced new “basic bank accounts”. One of the main aims was to widen bank account access to groups of people who have found it difficult or impossible to open an account:
- people who have gone bankrupt previously found it very hard to get a bank account;
- people in an IVA, DRO or debt management need to change bank accounts and have the overdraft on their old account included in the debt solution; and
- many people with poor credit records who aren’t in any form of debt solution are desperate to escape from their old account with its huge overdraft, so they can start paying it off, but they are rejected for a “standard current account” because of their poor credit rating.
All these people should be able to get a new style basic bank account. And these new-style basic bank accounts are great! This article looks at the advantages of these new accounts, which banks offer them and which you should choose.
Contents
No fees – ever!
They all let you:
- set up direct debts debits and standing orders;
- have a debit card (not all offer a contactless one and Santander’s is daftly complicated, see below); and
- have access to internet banking.
And the best bit is, if there isn’t enough money in your account to pay a direct debit or standing order, the payments won’t be made – so you can never go overdrawn – but you won’t be charged a fee for the DD rejection. Many people who have had big money problems know how much their bank’s overdraft fees and charges for DD rejections all contributed to the problem.
Who offers these new accounts
You should be able to open one of the following bank accounts if you have major problems on your credit record including being an undischarged bankrupt, in an IVA or a DRO, or having CCJs:
- Bank of Scotland basic account
- Barclays basic current account
- Co-op Cashminder account
- Halifax Basic Bank Account
- HSBC Basic Bank Account
- Lloyds Basic Account
- Nationwide FlexBasic account
- RBS, NatWest and Ulster Bank Foundation Account
- Santander Basic current account
- TSB Cash account
- Virgin, Yorkshire Bank and Clydsdale M Account
The only reasons you should be refused one of these accounts are if you could get a “normal” bank OR if there is a fraud marker on your account.
If you have an application turned down, ask the bank why – it has to give you a reason. If you have had any problems opening one of these accounts please let me know, for example by adding a comment at the bottom of this article.
My top pick is Nationwide
The Nationwide account has a contactless debit card, full mobile and online banking, text alerts and you can open it online.
If you already had a full current account with Nationwide before going bankrupt and you were not using your overdraft, they will normally offer to convert your account into a basic one. Here your sort code and account number stay the same and all your DDs and STOs stay in place , so it is hassle-free.
ID problems?
If you are having difficulty getting an application approved because of id issues, Nationwide, Barclays, Co-op and Virgin Money have a reputation for being helpful.
Two to avoid? Lloyds and Santander
From what I have been told, you can’t apply for a basic bank account with Lloyds directly – you have to go through the hassle of applying for a “normal” current account and then be rejected first. This is a very poor way to treat customers.
The problem with the Santander basic bank account is that the ATM card isn’t a chip & pin one, so you can’t use it in a shop. So they provide you with a “Visa top up” card which you have to pre-load with money from your basic bank account. This is a completely unnecessary faff – better to go to a bank which gives you a proper card debit card for the account.
Open a new account before or after you go bankrupt?
It may feel like a good idea to open one of the above basic bank accounts as part of your preparation for going bankrupt – this will allow you to get your salary and any benefits paid into the new account. If you want to do this two things are important:
- you must check that the new account isn’t going to be frozen when you go bankrupt!
- if you own any money to the bank you have chosen, don’t put much money into it prior to bankruptcy as the bank may help themselves to the money in the new account using the “right of set-off” clause in the small print. (This isn’t a problem AFTER you have gone bankrupt as then your debts don’t exist anymore so the bank can’t use right of set off.)
An alternative to think about – Monzo
I have seen some comments on internet forums saying that people with a Monzo current account opened before they went bankrupt were allowed to keep it afterwards. This isn’t a “basic bank account” and so it doesn’t have the “no fees ever” assurance.
But if you want a modern bank with an app that helps you budget and makes it easy to put small amounts of money aside (I won’t mention the cool looking bank card) then you may want to give this one a try.
Updated November 2021
A checklist for going bankrupt
Making an “arrangement to pay”
Concerns about starting a DMP
Nick Pearson says
As ever, an excellent article. Some credit unions offer accounts that allow people to carry out their banking. Also keep an eye open for the adviceUK bank facility for clients which is coming soon.
Andrew Philp says
Amazing article Sara. I have been living in fear of getting a bank account. I am now three years discharged and am still working from a cash plus MasterCard account for everything. Sounds as though I may be able to get a real account now.
Sara (Debt Camel) says
Thanks Andrew – can I also recommend getting a Credit Union account for emergency savings – and as an option for borrowing if you ever need it?
Marie Gray says
As usual, a very helpful article explaining the changes in an understandable way.
In particular:
a)Explains the timing of announcement -complying with EU directive “2016 or before”
b) Encouraging people to have a Credit Union account alongside their bank account. The icing on the cake for having control over finances.
Thank you Debt Camel
Becci says
I was made bankrupt on 7 January 2016. My Barclays basic that I opened before was closed but Nationwide have allowed me to keep the account.
I also have been accepted by Yorkshire bank this week after being declared bankrupt so the new changes are looking bright !
Sara (Debt Camel) says
Hi Becci, thanks for the info!
Annmarie mcmahon says
I recently let ulster bank know that I was made bankrupt in April 16 as they weren’t aware of this I need to open a basic account they froze my original account and I am still waiting 4 weeks later for a decision I at present have no bank account for household bills and salary is there someone I can contact
Sara (Debt Camel) says
This is the first time I have been asked a question about a basic bank account in Northern Ireland. So far as I know you should be able to have a Foundation Account with them: https://digital.ulsterbank.co.uk/personal/current-accounts/foundation-account.html. Have you phoned them up and asked why there is a delay?
Carol Williams says
I have an IVA and I cannot find a bank who will let me open an account. The banks I had prior to getting an IVA closed my accounts.
I am paid by cheque and I cant deposit my money because the bank I use wont let me have the option to pay cheques in.
Any ideas please?
Regards
Carol
Sara (Debt Camel) says
All the basic bank accounts listed here should be open to you, and you should be able to pay cheques in. Let us know if you have any problems opening one of these!
Linda says
I’m with bank of Scotland and they said that my account will close ??
Sara (Debt Camel) says
They may close an existing account. But you can open another account with them or with a different provider.
paul says
i got a dro on 4th febuary and co op and hsbc have both turned me down for a basic account
Sara (Debt Camel) says
Hi Paul – thanks for the information – that shouldn’t have happened :(
Roy says
I was able to open a Barclays Basic Account with no issues, shortly after being declared bankrupt in November last year, even taking into account the fact I had 2 Barclaycards included in my bankruptcy which came up on the system during the application process for the basic account. I did wait until the Barclaycard accounts were totally closed down before putting money into new basic account for fear of ‘off-setting’. Had no issues since. Barclays basic account now offers contactless debit cards.
Just a few days ago my Partner and I (both undischarged bankrupts) have applied online for the Nationwide Flex Basic account. Both applications were sorted and approved online in minutes. I think we may possibly need to send them some id before the process is fully completed. This account also gives you a contactless debit card and supports Apple Pay for those who want that.
I probably will cancel the Barclays one, although some have suggested keeping it to split bill money from daily expense money. I’ll see.
So based on my experience I would recommend the above basic accounts.
Should anything happen in a negative way with the Nationwide process I will update.
Roy says
Hi,
Just a quick Nationwide update .. all sorted. Form in post to sign and return, account opened. Dead simple.
Just want to add a thanks to ‘Debt Camel’ … your site was a great source of info and helped put my mind at ease during a difficult time.
catherine says
Ive recently gone bankrupt and am in the natwest bank.i rang them up and told them i was becoming bankrupt and asked if i could still bank with them.they were very helpful and arranged for my account to be demoted to a basic account keeping my account number and sort code meaning no extra stress of changing everything over.
Sara (Debt Camel) says
Excellent, it’s so nice to see a bank being helpful!
Sarah says
I became bankrupt last week, I had a basic Barclays account of which no debt to that account.
Yesterday they froze my account and by the time I was aware of it, the office was closed until Monday.
The only interest the OR has in the account is £200 and a monthly payment order which starts end of March.
I have no access to my funds in the account due to Barclays freezing the account which I thought was safe. How do I now get the funds and is this account likely to be unfrozen soon! My pay and bills all come out of this account.
Sara (Debt Camel) says
Hi Sarah, I am sorry but I think you have to go into Barclays and talk to them about this. I think they will probably say you have to open a new basic bank account and move all your payments and income over.
Sarah says
Yes I’ll contact them tomorrow, but seems crazy that I’ve already got a basic Barclays account. So I would be opening the same account again. So I’m confused on why they would ask me to do that again.
Nic says
I am bankrupt but also have conviction for fraud. I opened a Nstionwide basic and told them everything. Ten days later they say they are losing my account.
Are there any banks that will accept me. I don’t want to go through all that again. HSBC closed account I had because I was bankrupt
Sara (Debt Camel) says
I don’t know of any bank that will give you an account because of the fraud.
You could try one of these:
https://www.cashplus.com/
https://icount.co.uk/
https://monese.com/
I suggest asking them before putting in an application if you will be accepted. You also need to enquire closely about fees they charge and what you can do to see if any of them would suit you. I can’t recommend one.
mark says
Hi, I am almost certainly due to be made bankrupt by HMRC in the near future-I currently bank with Lloyds and have a ffrees prepaid card-I have been advised to open another bank account prior to bankruptcy as the above two will likely be frozen and closed-this doesn’t make much sense to me as presumably the new bank account will also be frozen, and possibly closed-however I would have thought I have a better chance of opening account before rather than after bankruptcy-
also I suggested (to the advisor I spoke to) I meet with Lloyds and explain the forthcoming situation to ascertain whether they would allow me to keep/downgrade the account-I have no debt with Lloyds and have operated the account well-I was advised against this, not sure why
Sorry for the ramble but with a highly stressful time ahead I am trying to ensure that major banking problems aren’t added to the mix, I really-any advice gratefully received!
Sara (Debt Camel) says
It is now pretty easy to open a basic bank account after going bankrupt. There is a lot of stuff on the web about opening one first with Barclays so you are prepared, but that is now out of date. Many of them, now including Barclays(!) will freeze any account when you are made bankrupt and say you have to open another one. This makes opening an account first pointless.
BUT if you haven’t taken advice about being made bankrupt by HMRC, I think you should. This may not be a problem for you if your debts are impossible and you have no assets to try to protect, but it’s worth asking about this. On the assumption that these debts are related to self employment or a limited company, try Business Debtline https://www.businessdebtline.org/
Christopher Wood says
My wife an I are considering bankruptcy as the only option to sorting out our debts, we currently have a basic bank account with Nat West with a debit card. our concern is having the account frozen which may interupt rent payment as well as others. If the account is frozen how long does this last and somewhere my wife has read that once you are bankrupt you are only allowed a basic account but you are not allowed any debit cards is there any truth in this
Sara (Debt Camel) says
I don’t know if the account will be frozen or if it is how long it will last. And some banks won’t let you carry on with the same account but will make you open a different one after bankruptcy – incredibly irritating.
Basic bank accounts changed and improved a lot in January. They are now much better than they were sp i would ignore what your wife has read, that probably dates from last year or earlier. Most will allow you a debt card, internet access and my top pick. Nationwide, even let’s you have a contactless card.
One thing you may find useful is to time going bankrupt just after your rent payment.
Sarah says
I had a basic account with Barclays after I was made bankrupt the bank stopped my online banking. Their reason was just incase I applied for a loan! Crazy . I would of thought that online banking would help you manage your account and finances better.
I have since changed to nationwide without any problems with online banking, and it also assists you in managing your future finances. It’s a very good account/ bank.
Rachel says
Hi, I was declared bankrupt in October 2012 and discharged 1 year after. I had no problem getting a barclays basic current after I was discharged. My question is about savings. Can I save now without any risk of my savings being taken from me? Also my grandmother wants to put a large sum of money in my name but I’m not sure if it would be safe so the last thing I want is for her to lose money, so I’ve been reluctant to do it. Do you have any advice about this? Thanks
Sara (Debt Camel) says
Yes you can safely save now. And your grandmother can give you a large sum and it is safely yours…
If you have an IPA/IPO, then if the large sum means you get a lot of interest then any income from this affects your IPA/IPO amount. But the sum itself is safe and you can even buy a house with it if you want and that will be safe.
Rachel says
Thanks so much for your advice and quick response. I don’t have IPA/IPO so I can now safely save for the future. This is truly a wonderful site, I have asked this question to a couple of sites last year and got no response. My friend has £40k debt and is thinking of bankruptcy as she is struggling to make payments. I will definitely point her towards you if she has any questions. Thanks so much Sara
Sharon says
I have been bancrupt for a month now and I have always banked with the Halifax. I went in prior to the bankruptcy and informed them what was going to happen. I went in after and was told to carry on using my account and all was well. They then froze my account on good Friday with no notice. They have never contacted me and when I go in no information is available. I went to barclays this morning and they couldn’t be more helpful. I opened a basic account with no hassle at all and I will transfer everything over. I would recommend them to anyone in my position.
C Mcleod says
yep the Halifax did the same to me …..not a word of support of advice
catherine l says
hi,i was made bankrupt in feb.
i had a current account with natwest.i rang natwest and told them I was going to go bankrupt and asked if i could stay banking with them. they were vety helpful. they gave me an email address for the official reciever on the day of bankrupcy to email a letter just saying they were happy for me to keep using natwest. i dont even know if my account was frozen or not as natwest just demoted my account to a basic one and i kept my account number and sort code which meant no stress going through direct debits and changing details.
i also had a rbs account which i did not use and have not even contacted them but they just automatically demoted the account and sent me new card.
Going bankrupt has helped me no end and I’ve not been inconvenienced at all.
Alexander says
I applied for a Nationwide account just a few days after being made bankrupt. I was accepted within 10mins and have returned the signed form. Does anyone know how long does the process take to get the account up and running?
Rob says
sould be pretty quick I’d say around 7 till 10 days max that’s how long it took me with nationwide not yet bankrupt but in the process of doing so yes nationwide are very good with people who are in financial difficulty’s
lpy1000 says
Hello – I am quite heavily overdrawn with Nationwide and no way to pay this overdraft back prior to going Bankrupt. I don’t think at all Nationwide will allow me to continue banking with them? Has anyone else been overdrawn and been allowed to keep their account?
My concern is my wages are paid by automatic bank transfer monthly into this Nationwide account – all my bills and rent go out by direct debit or standing order from this same Nationwide account – I have no other bank account. What would happen to my wages and how would i pay my rent and direct debits?
Sara (Debt Camel) says
I think you need to assume you will have to open a new basic bank account from a bnak that you don’t owe money to as soon as your bankruptcy application is approved. Choose one from the list in this article and get your application ready to go. Also make a list of all your DDs and STOs. And try to time your bankruptcy so that it is approved a couple of weeks before a payday, giving time for you to tell your work your new bank account details.
PolishGirl says
Hello,
I became bankrupt 3 weeks ago, I had a basic Lloyds Bank account of which no debt to that account. I have contacted my local branch before ( told them about my situation) and they told me that I will get a letter and warning if they decide to froze my account.Yesterday they freez my account without any warnings…
I will try to open a new one according to your suggestions. I am full of hope.
Thank you Sara for such a helpful page:)
Amy Wilson says
I have just declared myself bankrupt as my former partner ran up debts of almost £100k in joint names. After I discovered what he’d done (I received notification of CCJ’s) and the relationship broke down he declared bankruptcy, thus all of ‘his’ debts have automatically transferred to me and I have no way of paying them. I have an account with Nationwide which is always within my agreed overdraft limit and also a Nationwide credit card which again, is within limits. However, I have had to declare these ‘debts’ on my bankruptcy application. I have received the notification that my bankruptcy is in place and that I should cease using my accounts until further notice and so I assume that my accounts will be closed. My question is, I would like to open a basic account with Nationwide. Do I declare myself as a new customer seeing as technically I no longer have an active account with them or do I declare myself an existing customer? Also I have a basic current account with Barclays that I don’t use and has a £0 balance. I am assuming that I will also lose this account. Part of the Nationwide account asks for details of other bank accounts – do I declare this account or assume it closed?
Sara (Debt Camel) says
Sorry to hear the circumstances of your bankruptcy but well done for deciding to go for the clean start. Your are an existing customer of Nationwide. You need to ask Barclays if they intend to close that account.
Caroline F says
My ex-husband ran up debts in both our names of £26,000 then after we separated, he went bankrupt
I’ve now decided to go bankrupt. I have recently re-married but due to finances and these debts, we have been living apart until this week. Will his income b included when I declare my own? Will my outgoings now be classed as half of what they were before he moved in? There are some outgoings I wouldn’t expect him to cover such as my children’s clothing, days out etc so only utility bills will be split between us now. I’m worried they will say I only pay out for half of everything therefore will have plenty of disposable income when in reality, I’ll be worse off becausee will no longer get council tax relief or tax credits etc.
I did start an IVA but canceled it after a year as the payments were so high and I couldn’t maintain it for years. Will this work against me? How restrictive are they when confirming disposable income? In the IVA they said This is how much 1 adult and 2 kids needs to live on and that’s the end of it. I can’t bear to be in that situation again and if they decide my household income is now higher thanks to my husband finally moving in, and my personal outgoings are lower because they will expect him to pay half of everything, their figures will be unrealistic and I’ll be worse off than ever.
Sara (Debt Camel) says
” I have recently re-married but due to finances and these debts, we have been living apart until this week. Will his income be included when I declare my own?”
His income is asked for to make sure you are dividing joint bills fairly.
“Will my outgoings now be classed as half of what they were before he moved in? There are some outgoings I wouldn’t expect him to cover such as my children’s clothing, days out etc so only utility bills will be split between us now.”
If the children aren’t his, then it’s fair to expect you to cover their costs. So some bills bay be divided 50/50, some you would pay more or all of.
“I’m worried they will say I only pay out for half of everything therefore will have plenty of disposable income when in reality, I’ll be worse off becausee will no longer get council tax relief or tax credits etc.”
Well of course your income will be lower if you aren’t getting done benefits.
Have you talked to a debt adviser about bankruptcy? It may well be a good option for you, but a debt adviser can talk through your income & expenditure and answerany other questions.
I did start an IVA but canceled it after a year as the payments were so high and I couldn’t maintain it for years. Will this work against me? How restrictive are they when confirming disposable income? In the IVA they said This is how much 1 adult and 2 kids needs to live on and that’s the end of it. I can’t bear to be in that situation again and if they decide my household income is now higher thanks to my husband finally moving in, and my personal outgoings are lower because they will expect him to pay half of everything, their figures will be unrealistic and I’ll be worse off than ever.
maria says
Hi. I went bancrupt about 3 years ago and never got round to opening a new account. I have been using my daughters account with nationwide.all my wages and ddr and so go through this account.I have been scared to open one in my name.with my daughters account I have overdraft and credit card.I always stick within the limits. Do you think they will transfer everything over to one in my name or would you go somewhere else
Sara (Debt Camel) says
I think you will be able to get a new account with Nationwide, but they won’t be able to transfer over the DDs and things you have set upon your daughters account because they aren’t in your name. The same would apply if you open accounts with anyone else. You will have to get a list of these and set them up yourself with your new account and cancel the old ones. A hassle but it has to be done.
Samera says
I have tried most accounts that are mentioned above I can’t seem to open any, it gets refered then refused I have bad credit history what should I do I really need a account just to get benefits put in
Sara (Debt Camel) says
Have you asked why an account has been refused? Have you checked if there are any fraud markers against your name, see https://debtcamel.co.uk/name-fraud-database/
R, Johnstone says
I opened a Nationwide flexbasic account before I went Bankrupt,when I was made bankrupt they sanctioned it,but as soon as I faxed them with a letter that I got with my bankruptcy they opened it up took 45 minutes in all,they were helpful and understandingthey explained everything I had to do, so no complaints there.
Sara (Debt Camel) says
Good – it’s very helpful hear what is happening in practice – thanks!
Sarah says
I agree nationwide has been the best! Online banking and very helpful throughout process
Andy derrick says
I had a basic account with Santander for paying my bills etc, when I was going through declaring myself bankrupt as soon as Santander were contacted even though I had no debts and regular money via my salary going in they still blocked my account.
Even after having a letter of “no interest” and to allow me access to my account, Santander eventually unblocked my account but still closed my account! This was even after their own department said once closed I could open another basic account on closing my original account at my local branch so I could pay my bills. Only problem was their branch said I would have to wait “2weeks” to open another account in branch for an appointment! How ridiculas!!!
Christopher Wood says
I have not gone bankrupt but I do not have good credit I applied to Barclays Bank for a basic account no overdraft no card no nothing just a bank account I could pay money into and withdraw. There was no liability to the bank there was no way they could have been stuck with any bad debt but still they refused based on my credit history. I thought the agreement in January was to make it easier to open a basic bank account obviously nobody told Barclays
Sara (Debt Camel) says
Have you asked Barclays why they have rejected your application?
Christopher Wood says
Yes Barclays said it was because of a poor credit score and they were under no obligation to offer an account if they did not want to do so they stated that I could appeal but it would have to be to the person who rejected the application in the first place and she only works on Monday and friday
Sara (Debt Camel) says
Well i guess it depends how much you want this account with Barclays if you want to appeal their decision or just go to a different bank.
Christopher Wood says
I have no interest in Barclays I mentioned this to show just how the big banks operate and even though they state that they have agreed to help people with poor credit Barclays certainly does nothing of the sort in the meantime I have sorted an account with Nationwide on line 10 mins very up front no waffle to get the account you have to have a poor credit history because they check. So people if you are reading this DO NOT BOTHER WITH BARCLAYS go straight to Nationwide you will not regret it
Zara Sheppard says
I have just completed a DRO with my husband. We have a joint bank account with natwest and I have a single basic account at natwest in my name. The joint accounts overdraft will be written off as part of the DRO. So would I be able to transfer all payments etc into the basic account? The DRO will be finalised on my moving accounts.. but I want to stay with Natwest if possible. Also my granddad opened a ISA for my daughter which is also held at natwest. I’m spares to tell natwest about the DRO because I don’t want them to suddenly close our account.. I have a 7 week old baby too. Any advice would be gratefully received
Sara (Debt Camel) says
You should be able to transfer all the balances to the basic bank account.
I would normally advice changing banks though to one that you haven’t had a debt included in the DRO for. later on you may want a full current account or a credit card or a loan from your bank. Better to start afresh with a new bank.
Christopher says
Hi Sara
We are about to complete the bankruptcy forms. The reason for the rush is our old house has sold and there is a shortfall of £45,000 in addition one of the creditors who had a charge on the house has sent around a company called the Sheriffs office, they claim to have a court order for control of goods also the amount they are claiming has increased by over £10,000 with no explanation. I have received no documents from the court or from this company which lays out the claim. I have asked them to send me the court order plus an explanation as to why the debt has increased by nearly 50% (one excuse was there was a daily interest charge of £5 per month from the date the debt was incurred.
Our Rent payment id due at the end of this week and we pay this with our state pension income which is also at the end of the week. If we declare bankruptcy on say this Monday how soon would the bank accounts be frozen.
Chris Wood
Sara (Debt Camel) says
Hi Christopher,
I’m not saying that bankruptcy isn’t the right option for you and your wife – for pensioners, renting, with a huge mortgage shortfall it id very likely to be your best option. Going bankrupt can be VERY fast these days – if you apply for bankruptcy on Monday it can be proved on Tuesday or Wednesday. But I don’t like people being “bounced” into going bankrupt, you need to discuss this with a good debt adviser first.
It’s not possible to give the exact timing of bank accounts being frozen, not least because it can’t be guaranteed when your bankruptcy application will be accepted.
I think you should call National Debtline on 0808 808 4000 first thing Monday morning to discuss your general situation and the urgency of dealing with this particular debt. Get your bankruptcy applications all filled in this weekend if you want, but don’t press Submit until you are comfortable you have talked round all the options and implications.
Unless National Debtline think its essential you go bankrupt straight away, it may be much better to wait a few days, then apply at a point where you know you can pay your rent and then move to a new bank account.
Hils says
Hi ,I we were made bankrupt at Christmas, we also handed back the keys to our propulsion as we new that we could never pay off the mortgage, in the short time we had left (both over 60) we have been with Barclays for over 25 years , they have been so unhelpful , and spoke to me like a peace of you know what, Thanks to Debt Camel I have changed banks to Nationwide , they have been amazing, so helpful ,could not do enough for us, it has taken 10 days , we have a new account , and online banking, which we had lost, because we had our mortgage with them , I can not recommend Nationwide and your selves enough, think you for all of the advice on the website x
Lisa says
Hi,
I have a mortgage shortfall with the Nationwide after my house was repossessed. Does this mean that I won’t be able to open up a basic account with them during bankruptcy? Thanks Lisa
Sara (Debt Camel) says
This won’t be a problem. You can safely open a basic bank account with Nationwide after you have gone bankrupt.
Alison says
I am.1.5 years after discharge ftom bankruptcy. I had excellent advice at the time of the process ftom my insolvency advisor. I was told my account would be frozen and advised to swap to a basic account in a different bank ‘group’. Natwest were brilliant! They did everything regarding sorting direct debits etc. I just had to let my employers know of change of account for wages. I have a very basic account, debit card, mobile and online banking and no risk if being O/D. I have an annual review and possible upgrade after 4 years ftom bankruptcy date. I slept that night! Thank you.
Mo says
Hi this website has helped me so much thanks Sarah….I REALLY NEED ADVICE PLEASE. I have filed for bankruptcy and will find out soon when it will go live. My accountsnt submitter my forms and im waitint for an answer and natwest said my account won’t get closed but will be frozen. They will downgrade my account to a foundation letter bit I will need a ‘ bank to ‘ letter to unfreeze it. Do you know what lettwr that is and how I get it? Also Currently my wages are being paid into my wife’s account as I’m scared my bank acc will be frozen and wages may bounce back and will be embarrassing in front of my employer. So im preparing for bamkruptcy and nationwide and co op refused me a basic account! My question is…I. opened a think money account and card etc came today but is there a chance that this account will get frozen too however it is not a high street bank but a prepaid acc. The people at think money said it will be fine however a few said it depends on the courts and im getting mixed messages and am really worried as i started work and was hpping to get wages paid into this acc. Shall I keep my wages in my wife’s account until the bankruptcy is all done and then open another prepaid account or use my thinkmoney account as they can’t freeze that? And is it dangerous my money being paid to my wife’s account and can I get pulled up for that by the bankruptcy pls? Pls advise asap pls
Sara (Debt Camel) says
Hi Mo, if your wages are currently being paid into your wife’s account that is fine, tell the OR that is happening when you have your interview but they won’t mind.
Freezing bank accounts only applies when you go bankrupt. The OR isn’t going to decide in a few months time to freeze an account.
So I suggest the easiest approach for you now is just to wait a month, leaving your wages going into your wife’s account. After a month you will know exactly what has happened to the existing accounts and you can decide what to do about your banking – get the NatWest account downgraded, start using Think Money or open a different basic bank account e.g. With Natiowide. There is no need to make any of these decisions now or worry about them as your wages are safe. In a month you will be feeling less stressed and better able to decide what you want to do.
Louise says
Hey i have declared myself bankrupt and its gone through today, i recently opened a basic bank account with HSBC when i thought i may be doing a debt management plan. Does anyone know the chance of this being allowed to continue or am i best to try and open a new account with someone else. Like others my wages will be due to go in at the end of the month and bill payments be made so need to try and sort something asap if they are going to close it!
Sara (Debt Camel) says
Is there any money in it at the moment?
Louise says
About 48p lol
Sara (Debt Camel) says
In that case I suggest asking HSBC if this account is going to be frozen or if you can continue to use it. Given the tight timescale, if you don’t get a very clear reply very quickly, I suggest you open another basic account with a different bank and get your wages paid in there. Better safe than sorry!
Louise says
No that’s fine I did think that but thought worth an ask, if you have had debt with someone previously are they likely to decline you? Or would you recommend just trying someone new straight off. With my bankruptcy I had Barclays, Halifax so I know that’s Lloyd as well rbs so should I just try with someone like Santander or nationwide do you think?
Sara (Debt Camel) says
I wish I could have given a clearer yes or no.
You shouldn’t be declined because you owed the bank money. I suggest choosing a bank which has a convenient branch for you. If there are several, Nationwide’s basic bank account usually gets good reviews.
Louise says
No I really appreciate the advice it’s helped make my mind up on what to do! I thought I’d covered most things and that my account may be ok but I think I’m best to make other arrangements
Robert says
Hi I am considering bankruptcy as am unable to keep up with my debts current and past !! My issue is I bought a car on finance 10 months ago on a 5 year finance plan. I need my car in order to work so if I decide that bankruptcy is right for me can I keep my car and continue my payments for it.
Sara (Debt Camel) says
There are two problems, first if the lender will terminate the finance agreement – you could look at the paperwork and see if there is a bankruptcy clause that allows them to do this? And second if the official receiver will think your monthly payments are reasonable. I suggest you should talk to a debt adviser about your whole situation including this car on finance. Call National Debtline on 0808 808 4000.
Nicola says
I went bankrupt in June 2011 due to a family business liquidation and all debt being in my name. Scariest thing I’ve ever done. Felt like a criminal. Only bank that would let me have an account was the co-op. So glad to see banks have changed how they treat bankrupt people. Worst trouble I had was with HSBC, they were evil when I owed them money. Still got another 6 months till I no longer have to mention it on every form I fill out.
Sara (Debt Camel) says
The system is now a lot more friendly, with no need to go to court, applying online and a real choice of good bank accounts.
rosalind says
Hi i am just about to go bankrupt in the next couple of months and need a couple of questions answering. I have read about Nationwide and want to open an account with them so i can have wages put in and dd go out. If i open the basic account tomorrow, do i have to tell them when i open it of my intention to go bankrupt in a couple of months? I know that bank account will be frozen for a month and so i will have to take money out beforehand to live on etc, but what happens to the direct debits that need to be taken out when my account is frozen?
Also in order to live i am still having to use my cc’s and get cash out to save towards the cost of bankruptcy. My daughter also ordered some makeup from a cataglouge which i just found out and im terrified of being done for fraud I am only putting it off until March as i have any operation booked in two weeks and will not be up and around for at least 4-5 weeks. Should I in the meantime write to my creditors and offer them a payment of a pound as i have been advised to do to keep them off my back and then go bankrupt, or just cancel my direct debit to them and put up with the letters. I am so terrified of this all.
Sara (Debt Camel) says
No you don’t have to tell them you intend to go bankrupt. Your account should only be frozen for a short while,, see R. Johnstone’s comment earlier about what happened to him.
IOf you are prepapring to go bankrupt, you should stop borrowing. Also stop making any payments to your unsecured debts sucg as catalogues and credit cards – this will help you to save up the money for fees. It’s up to you if you think it’s worth the hassle to write and offer a token payments – perhaps it depends on how long it will be be before you get the fees? It may feel scary, but a few cross letters don’t really matter when you are planning to go bankrupt. Have you had any advice about bankruptcy? They may help you decide.
Nicola says
Hi, I just want to let you know that it’ll all be ok. I went bankrupt 5 1/2 years ago and I survived. Once you go bankrupt they can’t hassle you, they aren’t allowed. It’s only money and they’ll all get over it. I know it’s hard and you feel guilty but that means you’re a good person. Good luck with your op. Try not to be too worried xx
Hayley Jones says
I took a debt relief order last year and was discharged this past weekend.
As far as im aware my credit report will show the balance on each credit account until its taken off after the 6 years…im not sure if im right there or not.
But either way my main concern…
I would like to try and open up a bank account with a bank i had a credit card with (that was included in the dro). Are they still able to help themselves to money from the account (even if a default balance is showing) or am i 100% safe now ive been discharged?
Sara (Debt Camel) says
Now you are discharged, your balance should be showing as zero. See https://debtcamel.co.uk/repair-credit-record-dro/ and note that this can take a few weeks.
Now your DRO debts ahave been written off, you would be safe having an account with a bnmk you owed money to, they won’t be able to take money from your new account.
BUT really this may not be a good choice for you. Why not have a basic account with someone you never owed money to – that way you are more likely to be able to upgrade it later to a full account.
gary says
im about to declare myself bankrupt within a week or two ,ive got a debt collector chasing me on behalf of a finance company I owe money to ,would it be wise of me to let them know im going bankrupt or would they try to get to me before I do it
thank you
gary
Sara (Debt Camel) says
Hi Gary, I’ve looked at this situation here: https://debtcamel.co.uk/tell-creditors-bankrupt/.
Erin says
I have finally decided to declare myself bankrupt after years of being scared and worried over past and current debts..Finally spoken to family about it all which was a big weight lifted to actually put it out there I’ve read the comments about the banks and nationwide seems to be a good one do I do it before hand or wait til I hear back from submitting my bankruptcy forms ? my current bank is Halifax and I have direct debits n standing orders coming out on different dates throughout the month, my rent comes out on the 30th and I am paid on the 28th what happens when my account is frozen before I open a basic one will my bills still be paid ? Am so scared to miss payments on anything else please help
Sara (Debt Camel) says
Someone in the comments said they opened a Nationwide bank account, it was frozen but a phone call and it was unlocked 45 minutes later.
If you are planning bankruptcy very soon, then there isn’t enough time to open an account and get your Feb wages paid in to the new one. So you could decide to submit your bankrupty application just after your rent has been paid, at that point withdraw the rest of your wages in cash and then go and open a new account when your bankruptcy is approved a day or two later. Then set up your new DDs and STOs.
Missing one payment on anything isn’t much of a problem if you are aware of it and call them up to orgainse paying it manually.
Finally have you talke to a debt adviser? Bankruptcy may well be the best solution for you but it’s worth 30 minutes of your time to talk to National Debtline 0808 808 4000 and get this conformed by “an expert”!
Erin says
Thanks for your reply .. yes I have spoken with step change and really it’s the only answer so feel slightly relieved there is an answer and support and plan on how to recover myself from this whole mess one thing I forgot to ask was should I stop paying the few things I do pay ? I.e. credit card bill?
Sara (Debt Camel) says
If you are clear that you are going bankrupt you should from this point on be treating all your non priority creditors equally. So if there are some you aren’t paying, you should stop payments to any credit card you are still paying.
Declan says
Hi there – if direct debits continue to come out of my bank account after a bankruptcy order and increase the size of the overdraft further (debt) – is this included in my bankruptcy? The bank were contacted by OR and never responded. Thank-you.
Sara (Debt Camel) says
No. You need to stop using this account, get yourself a new one and move the direct debits to that one.
Louise m says
Hi I am currently bankrupt and due to be discharged automatically in
November after a year. I have my basic bank account am I able to open
a separate account/savings one to put money aside for bills nursery
bill being one of them. I’ve recently become a lone parent and want to
ensure my daughters childcare monies are kept aside from everyday
money
Sara (Debt Camel) says
Yes, there is no reason why you are only allowed one bank account.
Peter says
Hello Sara. I declared bankruptcy in Nov 2012. I went though the process myself as I couldn’t afford to pay anyone. I included in the BR a current account that was in overdraft of £165. I was hoping to continue using this account in the future as this had been a long term account. I made a few cash transactions a few days after bankruptcy order (totalled about £80). I also had a few DD’s come out (totalling about £80) – I forgot to move them to the temporary account I was using. Within 3 week of BO I ceased using this bank account and was informed by OR that the overdraft was to be included as a creditor. Past few months I’ve been receiving letters from a DCA requesting payment of this overdraft. With costs and charges it’s about £700 now. Can you advise on what I should do please? Many thanks.
Sara (Debt Camel) says
Well first for anyone else who is reading this, you don’t have to pay to have help with going bankrupt. Go to your local Citizen Advice or phone National Debtline on 0808 808 4000.
I suggest you send the DCA details of your bankruptcy. And ask them to set the default date to be the date of your bankruptcy and the balance owed to be zero on your credit record as the template letters here https://debtcamel.co.uk/credit-file-after-bankruptcy/ say. Also send the same letter to the original bank asking them to correct that.
This may well resolve the matter. If they persist in saying that the post-bankruptcy transactions were not included in your bankruptcy, contact your OR.
Peter says
Hi Sara, as your advice above I contacted the DCA with proof of bankruptcy. I emailed them bankruptcy order. They’ve came back asking for proof that the bankruptcy was completed and to send on proof of same. Does this mean the discharge certificate? I’m am hoping this is positive.
Sara (Debt Camel) says
Yes, your discharge certificate or a letter from your OR’s office confirming you have been discharged, see https://debtcamel.co.uk/discharged-from-bankruptcy/.
Betty says
Hi. The bankruptcy order was made on my name on April 2017. My bank accounts at Lloyds and Bank of Scotland was frozen and I was told it will be closed down. I’m trying to open another bank account and it’s a bit tricky. Barclays said no to me. And I never before had any products with Barclays, so my dept was never connected to that bank. I really don’t know where to go and what to do.
Sara (Debt Camel) says
Did you try to open a current account at Barclays? Or basic current account, which you have to do in branch?
Betty says
Yes i did try with Barclays and they refused to open my bank account. I don’t know what account they did try to open but they knew I’m a bankrupt.
But I’ve been at branch and the decision was negative.
Sara (Debt Camel) says
They should not have refused you for a basic bank account unless there are any fraud markers on your account.
You could go back to the branch, ask them to check if your application was for a basic current account and if it was, ask them why it was refused?
There are other banks to try (see the article above), but it would be good for you to know the reason Barclays have rejected you.
Betty says
The customer advisor said to me she doesn’t know why they refused to open that bank account for me. I didn’t have a good impression after meeting their. And what do you mean saying “fraud markers”?
I’m a foreign and my dept is not even made in here. So I don’t understand.
Sara (Debt Camel) says
A fraud marker is something against your name that suggests you have committed fraud. It is very unusual, but banks don’t have to give basic bank accounts to people who have had problems with fraud.
They do have to give a basic bank account if you have just gone bankrupt.
Your choice is to go back to Barclays and ask why you were refused – they do have to give you a reason – and complain if you have been refused a basic bank account because you are bankrupt.
Or to apply to a different bank for a basic bank account.
Louise m says
Hi Betty I have an account with Natwest and nationwide just basic ones but both have debit cards to be honest for everyday you wouldn’t know they were only basic accounts hope you get something sorted
Betty says
Hi Lou . I’m really stressed by that situation. I’m trying everywhere. Hope a new day will bring something positive. I did apply online to nationwide. Will see what is gonna to happen.
Daniel R says
Hey Sara. I went bankrupt in England in 2015. I moved my wages from my bank account into my partners before bankruptcy order but had intention of returning back to my old account after I spoke with OR. I had an overdraft on my own bank account and I and made a few cash withdrawals after the BO from that account. I was unaware I had to stop using account until OR contacted me a week after BO and I read it in the documentation that was sent out. As soon as he contacted me I stopped using the account. It was about £100 that was withdrawn. Should I contact OR and make them aware? I’m now discharged. Would I be in trouble for this? I was totally unaware.
Sara (Debt Camel) says
It was a small mistake over a short period – I can’t imagine you will get into trouble for it. You could contact your OR to discuss it if you are concerned.
Daniel R says
I appreciate your reply Sara. I have a company called Robinson Way pursuing me for the debt. Some of the overdraft was in the BR and the above amount is after the BR order. Should I just send them notice of my discharge? I have a discharge letter from OR.
Sara (Debt Camel) says
You could read the comments a few above by Peter who has a roughly similar situation. I suggest talking to your OR and asking what to do if you are concerned.
John says
Has anyone ever heard of PBAcontact@lloydsbanking.com got an email from them after I logged a complaint. Just worried in case it’s fraud or not ?.
Sara (Debt Camel) says
Well PBA is presumably Packaged Bank Accounts and it appears to be a valid format for a LLoyds emails (see the one on this page as an example http://www.lloydsbankinggroup.com/our-group/responsible-business/contact-us/).
But if you have any concerns about fraud, you should contact the bank via another route (telephone banking?) and query it.
John says
Thank you I just wanted another view in it if had a look and it seems to be the real thing. I will give them a call and see if I’m due anything back.
Thank you
Aaron says
Hi I just need some advice I went on dro on 13th December 2012 and was discharged on 13th December 2013. Barclays nationwide and natwest closed my accounts prior to this and as of today I can’t get a basic account with any provider gets refered then declined. Just don’t no what to do.
Sara (Debt Camel) says
Who have you recently applied to? Did you ask why it was declined? Have you checked to see if there are any fraud markers associated with you, see https://debtcamel.co.uk/name-fraud-database/.
Andy Jardine says
Hi I was granted bankruptcy 4 weeks ago and noticed today my account with nationwide was frozen. I have a flex account with them, I went into my online banking and it stated it’s now a flex basic account with same sort code and account number, would this be correct, they have downsized my account with no notification, if so why is it still BLOCKED? thanks andy
Sara (Debt Camel) says
Downgrading to a basic account sounds right. I suggest you phone up and ask why it is blocked.
Michael V says
Hi I am in process of going bankrupt I have a few questions should I wait until after been declared to open a bank account and can I start saving in that account straight away with my wife s income as I am only one going bankrupt or wait until discharged and can The OR take any of my money from new account while I am still bankrupt thanks
Sara (Debt Camel) says
It is usually better to open the new account immediately after your bankruptcy has been approved.
I suggest your wife should have a separate account for her income and any saving. The OR can’t “Take” money from an account opened after Bankruptcy but it’s good to keep your affairs slightly separate so that it’s easier to explain to the OR if questions are asked.
Have you worked out which joint bills and joint loans your wife will continue to be responsible for, e.g. Council tax?
E says
My partner took out phone contracts around 5 years ago which weren’t paid back. The creditors have the old home address and there’s been no contact in regards to these contracts between the two of them. Is there an account my partner can get registered to the new home address?
Sara (Debt Camel) says
She wouldn’t be refused a basic bank account, as discussed in the article above, because her credit record has problems.
But if she is hoping that the new account and new address won’t be linked to her old address and the defaults, that is unlikely – these days the systems are getting quite good at working out who is who.
maverick1103 says
Hi Sara,
I plan to go Bankrupt in next 2 months after seeking advice from StepChange as it’s my best outcome, one question I didn’t ask them StepChange was regarding my bank account. About 4 months ago I opened up a basic bank account with HSBC, which has no ties with any of my creditors, I did this a bit early as wanted it all sorted before I went ahead with bankruptcy, now I’ve been reading comments from people about their bank accounts getting closed or suspended, now would this account likely get frozen permanently do you know?
Thanks.
Sara (Debt Camel) says
I don’t know the answer for HSBC – I am afraid you need to ask them.
maverick1103 says
Ok thank you.
Jonny says
I’m about to go bankrupt. I owe Halifax some money. Will my Lloyd’s tsb account potentially be used in a “right to set off” as its part of same group?
Sara (Debt Camel) says
As the article above says, a “right to set off” can only be used BEFORE you go bankrupt. If you are about to go bankrupt, this is unlikely to be a problem.
BUT you may find your Lloyds/TSB account is closed when you go bankrupt – is this what you are concerned about? NB you need to work out if it is a Lloyds or a TSB account as they”got divorced” a couple of years ago.
Bridget says
I’m planning on going bankrupt this week coming, I suffer with depression and I can no longer go on like this, I have an nationwide account, but I owe them money on an credit card, as all of my money which goes into the bank is in benefits, can Nationwide take money from my account to pay this credit card, and do you think I will be able to still use my nationwide account.
Sara (Debt Camel) says
After you go bankrupt Nationwide won’t be able to take the money from your current account to offset the credit card.
Is your Nationwide account a basic bank account?
pauline nicholson says
I applied to be made bankrupt eight years ago and was given a Cashminder account with the co.op. I had applied at the time to various banks and knowing I was a self declared bankrupt only the Co.op would help. They were extremely supportive. Recently I have reached a point whereby although I have £2,000 sitting in this account I may need an additional small loan of £500 over a period of 6-8 weeks to cover removal expenses. I have life insurance of £13,000 and have kept a balance of £1,000 in the account since opening it. I don’t want to change to a current account at this point because I have enough on my plate with the move. So advise anyone offered a cash minder account they will not get any assistance with loans should they face a situation where they need extra funding.
Carole brett says
How do I get a fraud marker removed from my credit file. I was a victim of fraud did not commit fraud myself but Barclays Bank stopped my bank account They asked no details about what happened just cancelled my accountI complained to the bank but was told they had done nothing wrong.How can they do this without asking for any details from me.I would have been quite happy for them to contact the police.As a result of this I cannot now get a bank account with any bank but I have done nothing wrong I have a personal pension that I can’t get my hands on as it can only be paid into a bank account in my name.
Sara (Debt Camel) says
Read https://debtcamel.co.uk/name-fraud-database/.
Linda shoesmith says
Barclays refused me basic account but would not give reason
Sara (Debt Camel) says
Have you asked them why in writing? Might you have any fraud markers on your accounts? See https://debtcamel.co.uk/name-fraud-database/.
Kg103172 says
Hi I’m about to apply for a DRO and I bank with Halifax, have no debt or overdraft with them.
Will they freeze my account?
As I also bank with Santander and have credit card debt with them but no overdraft and was told Santander will freeze account I have with them.
Sara (Debt Camel) says
It’s best to ask Halifax – if someone says Yes or No here, that may have been right for them 10 months ago, but you need to know what Halifax will do in your case now.
Dan Essex says
Does anyone know if Cashplus freeze an existing account when someone goes bankrupt?
I am shortly going into BR and already have a Cashplus account (as well as a NatWest one, but I’m worried that might be frozen – in which case I ought to get my wages paid into Cashplus, perhaps?).
Eddy says
Does anyone know of a bank allowing you to open a basic business account once bankrupt (undischarged)
Bob says
Hi Sara thanks for the reply yes Lowell was included in my bankruptcy my credit file looking at it there’s still 2 defaults on it one for Argos and the other vanquis the rest are all settled in relation to Lowell was just curious as to why they would do 3 searches on my file in the space of 4 months maybe it’s just a fishing excercise in there part
Sara (Debt Camel) says
The Vanquis and Argos debt should be shown now as settled with zero owing. If they aren’t, get that sorted as the link in my previous comment says.
Adrian Hun says
I opened a basic bank account with Yorkshire Bank before going bankrupt. When I told this bank i was bankrupt they froze the account. I have no debt with this bank. The official receiver provided me with a letter saying that OR was happy for me to use this account to receive benefits and pay bills. However, when i presented this to the bank they said they had to wait for their head office to get the original copy and make a decision.
The branch staff told me they could NOT ring the head office to find out if the letter had been received or give me time scale. When I complained, they told me if I wasnt happy with this, they would close the account and I could go elsewhere!.
With having no idea how long it will take them to make a decision, would I be better off just abandoning this account and opening a basic account with another bank?
Sara (Debt Camel) says
It sounds like it!
Maxwell says
Discharged bankrupt with bru where do you advice to get bank account to pay in pension and pay direct debits., draw out cash. Do not want card.
Sara (Debt Camel) says
You should be able to get any of the basic bank accounts listed in the article above even though you have a BRU. The only reason to refuse is if you have a fraud marker on your account, not because of your bankruptcy.