Apply for Cash Card Account before or after declare bankruptcy?

banksshouldworry

Ive had my call with Step Change and they advised me that bankruptcy is my only realistic option.

I will declare bankruptcy near the end of this month, but I have a question about when to open my Barclays Cash Card account. Ive got an appointment with them set-up.

My initial thinking was that it would be better to open it up now and then begin to transfer my payments and direct debits over before I declare bankruptcy.

Is that the right way to do it? Or is it more advisable to open up the Cash Card account after the bankruptcy and then transfer payments and DD's over?

Also if I open up a Co-op Cashminder account now before bankruptcy, do I get to keep it open after declaring BR?

banksshouldworry

TheGardener

Hi
Co-op: if you open now but don't mention impending BR you should be fine but they wont let you open one after you are BR.

Barclays - I opened mine before I went BR so that I had time to move all my income and DD's (salary, child Benefit etc) over before I went BR. When you fill in the BR form 6.28 Q5.4 make sure you tick the column that asks if this is the account your regular income goes into, that way the OR can let the bank know they have no interest in this account and Barclays should leave it open/unfrozen. Mine wasn't frozen at all but the rule at Barclays is no internet or phone banking until you are discharged (unless like some you slip through the net)

I would try and get organised before you go BR if you can.

banksshouldworry

Thanks for your input Gardener.

Ive got the meeting with Barclays so hopefully Ill get a sort code and account number on the day and then begin to transfer over payments and DD's. All the token payments to creditors wont getting transferred over though :rotfl:

TheGardener

Losing the internet banking was a nightmare but I found I needed it less and less as I no longer had to juggle the debt payments at the dead of night when my salary arrived:eek:.
However, you can ask for weekly paper statements and you can have text alerts - but no mobile banking app either.

If you want to have budgeting options - when to go to Barclays, ask them to open two basic accounts, that is ok, in fact it was my bank manager who recommended that I do that as you will probably find you are not able to open a savings account.

I would also highly recommend you see if there is a Credit Union near you and open an account with them (or some jobs have them; NHS, Police, Fire Brigade etc) They are excellent for savings and are open to BR's. I use mine to save for my annual bills like car insurance as you may find you are not able to pay by instalments while you are undischarged.

banksshouldworry

I just got back from Barclays and they said they couldnt open a cash card account for me because they had to shut my old standard Barclays current account with an overdraft still owing from a few years back. Im making token payments on that and a Barclayloan too.

So I suppose that my only free option is to go for the Co-op Cashminder before declaring BR. Will that be OK so long as I open it before BR?

Ive found a Credit Union near me to so I will look into that option as well.

banksshouldworry

Helpmeoutofthismess

It sounds like barclays are being a lot less lenient recently :sad: they opened a cash card account for me last February and didn't even mention the 3 defaulted barclaycard accounts that popped up with my name. Is there any option to get the decision looked at again?

I didn't have the option of the coop as I had defaulted on my smile overdraft but from what I understand, you need to open the account ASAP and try not to go bankrupt too quickly afterwards. Also, don't mention bankruptcy at all or they will decline you.

I hope you get something sorted without having to resort to a paid account!

H x

macbabypam

I would get another opinion at Barclays or try another branch. I opened a cash card account with them in Oct last year after BR in sept when Yorkshire bank closed my account despite telling me I could keep it.

I had a barclaycard and OH had a loan with Barclays which was included in the BR, they knew all about them and even took our personal details from them to open our new cash card account. They certainly didn't see it as a problem and were very sympathetic and non judgemental about our circumstances.

You definitely need to open your co op Account before BR as they won't open a new account for undischarged BRs.

Good Luck

TheGardener

Hi - sorry to hear it didn't go so well but as others have said - go back and try and get them to change the decision and have a go at the co-op. Some CU's are big enough to have current accounts. Mine isn't but they do have a budgeting account where they can pay your bills for you and give you a pre paid visa debit card with what you have left over(after the bills are paid) on it. Open a CU account anyway - at least you will have somewhere to pay your income into if all else fails with the banks on the High Street.