Bank accounts for Bankrupts - Discussion Thread

tigerfeet2006

MerseyRed, just a quick question , have you cleaned up your credit files? If not then it is a good idea to start doing that. There is a sticky at the top of the board with info on how to do this.

MerseyRed

Yes, the only record of my bankruptcy out of a list of Creditors (Lloyds TSB, Abbey Nat, Alli Leic, Egg, MBNA and Morgan Stanley) from back then is actually the Morgan account. It shows as Barclaycard on my Experian report, but with a Settled - Partial Settlement. This was 'settled' on my discharge and the !!!!!!s are gonna keep it on my file for 6 years from discharge...being 01/04/2011.

However, checked with Equifax and the record for this same account is not showing as settled. I contacted them yesterday (Barclays) and they said they would inform Equifax within 48 hours, however it's not been updated yet.

I have 17 months worth of HP payments up to date, my bank account is up to date with no overdraft and also have credit card with up to date payment for 7 months.

dvs

Gonna post this here as it's relevant to this thread:

Natwest told me on four occasions that I could keep my existing dormant current account despite being bankrupt (they weren't a creditor). Today I checked that this was still that case and, as expected, they now say I can't keep the account. Apparently it's because it's classed as a credit account. They checked this with the legal department who said I can have a Step Account.

So I applied for the Step Account online and it was declined. I called to find out and they wouldn't tell me but told me to apply again. I applied again but didn't input that I was an existing customer. The application processed further and then there was a question about whether I had ever been declared bankrupt. So I put yes and it was declined because... wait for it... I'm a bankrupt.

I called business services (my account is managed with my business account) and was told by the first agent that if I hadn't said I was bankrupt then the application would have gone through. I then spoke to someone who spoke to someone my business manager who said I can definitely have a Step Account but I needed to go to the branch.

So I went to the branch, told them the situation and was told that the account is not available to undischarged bankrupts. She looked into my account and contacted the person who put the block on my account. She was told that I had to keep quiet about my bankruptcy and we can open the account'. Same thing one adviser said on the phone. So it seems they are saying lie and you can have the account. Hmmm.

okeydokey

Hi dvs, you said you have a business bank account yet you are BR, did you have this prior to BR?

dvs

okeydokey wrote: »

Hi dvs, you said you have a business bank account yet you are BR, did you have this prior to BR?

Yes, my business account was opened prior to my BR. I have since transferred the business to a business associate but my personal account is still listed as being managed by the business division. Natwest do not let you manage a business account if bankrupt.

sieve

Hi Okeydokey,

I am in the process of opening a business account with HSBC in readiness for going BR as my current Natwest business account will no doubt be nuked the second I go BR as Natwest are one of my biggest personal creditors. They have said the account is open and I will receive my documents through the next few days.

The account doesn't come with a debit card or credit facilities by standard, that is an extra application, it just allows you to take and make payments in your company name, so theoretically it is just a basic business bank account. Looking in HSBC's T&C's it says:

3.1.10 In the event that:
(a) a resolution is passed for your voluntary winding up; or
(b) a petition is presented for your compulsory winding up; or
(c) a petition for a bankruptcy order is presented against you then you agree that we may
(i) refuse to act on any instructions from you or any other party unless you have previously obtained an appropriate validation order from the Court and/or
(ii) set up a separate account or accounts in your name to which any of your future receipts may be credited.

To me this suggests that they may let you carry on through bankruptcy, even if they have to close your account and reopen a different one under the same name?

I guess I will find out sooner or later anyway, but it looks encouraging...!

okeydokey

Thanks for reply sieve, did you tell HSBC BR is forthcoming?
we have been advised we can trade again after BR but this bank issue is a real problem. May I ask are you a sole trader or partnership, and do you employ staff? sorry so many questions just trying to make contact with someone in similar position to me

sieve

No prob. No I didn't tell them I am about to go BR, I have no doubt they wouldn't have bothered opening the account if they knew, trouble is I have a viable business and people don't really like making payments to a personal account if you are issuing them with VAT invoices.

I'm a sole trader and although I have in the past, I don't currently employ any staff.

okeydokey

Yes I know what you mean sieve its a problem. I know being BR is bad but I still can't get my head around the fact that not one bank will open non facility business account once BR, even knowing that overdraft etc is not allowed, how are we all supposed to keep going, to earn a wage and to keep on employing other people??

MollyBear

Please can some one help/advise us!! I had a Co-op account just before we went BR, had a total of 3 dd's returned so are now closing the account.
Tried lloyds tsb for a basic account....declined
Tried Barclays for a basic account.... DECLINED!!! Help!
Has anyone else had this happen? What did you do, what can we do??
We need an account that we can pay wages into, benefits and withdraw money from, surely it isnt that hard to find!!

We are both officialy discharged as we both got ED, we tried the post office for a card account but you dont get a debit card and canty have wages paid in

Any ideas? I'm at my wits end

MollyBear