Bankruptcy bank accounts

If you have decided to declare yourself bankrupt one of the first things you need to think about is your bank account.

You will need a bank account when you are bankrupt. You will need the account to manage your income and living expenses budget which will be your responsibility. You can also use the account to make any income payments requested by the official receiver.

However, very soon after you go bankrupt any bank accounts that you have been using in the past will be frozen by the court. You should therefore arrange to open a new account with a new bank before you declare yourself bankrupt which will remain open.

To find out more continue reading below.

What type of bank account should you have?

There are a number of banks that will allow you to have an account with them if you are bankrupt or shortly to declare yourself bankrupt.

When opening the account, regardless of your credit rating you should tell the bank that it is your intention to go bankrupt so that they offer you the right account.

Normally the account you will be offered will be a simple bank account known as a card cash account. You will not be offered any type of credit facility with this account.

In the past, the main problem with a card cash account was that it did not come with a debit card. However this problem has largely now been resolved as many banks now offer their card cash accounts with a debit card which comes as standard.

The banks on the list below provide card cash accounts and should be able to help you:

Barclays – Cash card account
Co-Op – Cash Minder Account
Clydesdale – Ready cash account
Santander - Instant Plus Account
Halifax/BoS – Easy cash Account
Lloyds – Card cash account
NatWest - Step Account
RBS – Key Account