I'm an ex bancrupt - any advice?

melodyman

Hello All,

My bankruptcy ended in April last year (2005). I won't go into all the gory details, but suffice to say I've learnt my lesson and will NEVER put myself in that situation again.

Now that I'm "straight" I'm finding it hard to open a business bank account. My credit report doesn't show the bancruptcy, because it only stays on your report for 3 years. However, it does show the credit cards and loan that were part of the bancruptcy. As far as I'm aware, these details will stay on my report for 6 years. Is that right?

I now want to open a business account with HSBC and when I went for the interview, I told them about my past credit record in advance. (By the way - I have a personal current account with them). We went through the application procedure for a business bank account, but.... "The computer said NO"

Actually the bank were very understanding, because they told me that at least by using a normal current account for business activities I won't get any business bank charges!!! But, I would like to do everything by the book and have a separate account - it'd make my accounts easier for one thing.

Also, I want to set up an account with Royal Mail so that they'll collect my post. (My business is mail order). Apparently they don't allow you to pay in advance, but you need to set up a credit account with them. So - in order to do this, they'll do a credit check, and then of course get back to me and say no. (

Anyone know if there's anything I can do? Sorry this post is so long.

Spendalot_2

Is your business a limited company? Assuming its not, why not just open another HSBC bank account like the one you have? In so far that I am aware, you can hold two current accounts with the same bank.

Then you have one account for personal, and another for business. Although its not deemed a 'business' account by the bank, it can deemed a business account by you.

I advise you try the post office, to see what they say. Their credit checking process might not be as strict as the banks.

melodyman

Thanks for your reply.

I opened the current account as soon as I was made bankcrupt. Again, I told them about the bankcruptcy, but at that time the computer said "YES". In my last interview at the bank the lady said that my application might have been accepted because I applied so soon after my bankruptcy and the details of it might not have been in the system. So, basically I was lucky!

I'm due to see her again in 6 weeks so I'll still ask if it's possible to a second normal current account, as opposed to a business account.

As for the Post Office, I might just apply for the account anyway. If they say no, then I'll just have to wait another 2 years before applying again! (By the way - it's not a bank account with the post office - just a credit account: They pick up your post for delivery then at the end of the month they send you a bill for the cost).

Justin_Credit

I have gone along the route of opening a second current account with my High St. bank which I use just for business and it works fine for me.

The reason I did it was that I didn't want to pay the ridiculous charges that they have on business accounts.

The other option is that you may be able to go down the limited company route for the business, but not sure if it is necessary or desirable.

Regards JC