Upon filing for bankruptcy, your bank account will be frozen and may be closed.

You will, therefore, need to make alternative arrangements to receive your wages and pay bills. The good news is that you have a few options:

  • Prepaid cards (no credit check, additional benefits)
  • Managed bank accounts (no credit check)
  • Basic bank accounts
  • Credit unions

Bank Account Alternative – Prepaid Cards

You may wish to consider a prepaid card such as the Cashplus prepaid gold MasterCard®, which also has a credit builder to help you rebuild your creditworthiness. It has 100% guaranteed acceptance*, no credit checks, no bank account required, and you can have your wages paid just like a bank account. You can also set up standing orders and direct debits. There is also no charge for bounces.

Managed Bank Accounts for Bankrupts

If you are trying to find a bank account for bankruptcy, you may wish to consider a managed one. Although there is a small fee, they are becoming trendy because you are guaranteed to be accepted, even if you are bankrupt. They usually have the following facilities:

  • No credit check to open one
  • A Mastercard for shopping and cash withdrawals
  • Internet & telephone banking
  • No hidden fees
  • Standing orders
  • Option to add an additional cardholder

These are typically available for a small monthly fee. To apply for one or to find out more, go to Card One Banking.

Basic Bank Accounts for Bankrupts

Sadly, with a history of bankruptcy, bank accounts can be challenging to find without paying for one. If you are looking for a free bank account as an undischarged bankrupt, you have one option detailed below. If you want to compare the different types of bank accounts for bankruptcies, visit the banking facilities page.

* Please note that the primary bank account products have recently changed. From 01st January 2018, their eligibility criteria appear to have been standardised. This could be good news for bankrupts. I will post more information as it becomes available. It would be best to do your own; we research and explore all options before getting your account.

Who can Provide a Bankruptcy Bank Account?

If you are an undischarged bankrupt

The following are bank accounts for bankrupts that you may be accepted for if you are an undischarged bankrupt:

  • Barclays Basic Current Account
  • The cooperative Bank no longer offer an account. You have not been discharged.

If you have been discharged from bankruptcy

If you have been discharged from bankruptcy, the following bank accounts may be available. Always check your credit report before applying to ensure there is nothing that can damage your application. You can get a free trial at Equifax.

  • Barclays Basic Current Account
  • NatWest Foundation Account
  • Royal Bank of Scotland Basic Account

You can get a 30-day free trial of your Equifax credit report online. Go to Equifax’s free trial page for more information.

You must 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.

Credit Unions

Credit unions are organisations set up as co-operatives, usually to benefit the community they are set up. Your local credit union may offer accounts, so it may be worth asking.

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, ensure 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 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 will likely 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 later.

You should have Internet and telephone banking access 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, your current bank may re-open your account and provide you with another. However, this may take a few weeks and is not guaranteed.

*Subject to applicant providing acceptable identification, being a UK resident, aged 18 years or older if primary cardholder, or 13 years or older if additional cardholder. The cashplus prepaid MasterCard is issued by APS Financial Ltd (AFL) under a license by MasterCard International Incorporated. The Financial Services Authority authorised and regulated AFL and registered in England no. 06029941. Your card will be serviced by Advanced Payment Solutions Ltd (APS), a registered agent of AFL—registered in England no. 04947027. cashplus is a registered trademark of APS.