Debt Relief Order and bank accounts?

money_sieve

I am planning to apply for a DRO because I am now spending all of my disposable income on servicing debts of about £8k.


I will include my current bank account overdraft in the DRO, so will lose my banking facilities. I am not sure if I will be restricted to basic accounts once the DRO is in force, but at the moment my credit rating is good. It is the quiet before the storm! So it is advisable to open another current account now before the DRO? Presumably I won't have to add it to the list of creditors. I will have my salary paid into it and maintain it in credit during and after the DRO.


It is a drastic move but I am prepared to take the hit on my credit rating.


Many thanks

alastairq

Barclays basic account, also Co-op Cashminder basic accounts are both BR/DRO-friendly.

Exactly what sort of 'restrictions' do basic accounts apply, over so-called 'ordinary' accounts?

The basic bank account does everything any other current account does...DD's, SO, bill-paying, pay in and withdrawal of cash, debit cards, you name it.

Only things missing, as you note, are access to an overdraught, and a cheque book.

Both of which actually constitute 'credit'.

Be aware, Barclays will suspend internet access for the duration of the DRO [or whilst an Undischarged Bankrupt].

Co-op will not open a Cashminder for either [a] someone already in a DRO, or whilst an Undischarged BR.....

So for a Co-pp Cashminder account, get one or two opened well before the DRO starts...[don't mention BR or DRO and apply in person/over the phone.]

Best to have at least 2 operational accounts to aid budgeting.

bell123321

alastairq wrote: »

Barclays basic account, also Co-op Cashminder basic accounts are both BR/DRO-friendly.

Exactly what sort of 'restrictions' do basic accounts apply, over so-called 'ordinary' accounts?

The basic bank account does everything any other current account does...DD's, SO, bill-paying, pay in and withdrawal of cash, debit cards, you name it.

Only things missing, as you note, are access to an overdraught, and a cheque book.

Both of which actually constitute 'credit'.

Be aware, Barclays will suspend internet access for the duration of the DRO [or whilst an Undischarged Bankrupt].

Co-op will not open a Cashminder for either [a] someone already in a DRO, or whilst an Undischarged BR.....

So for a Co-pp Cashminder account, get one or two opened well before the DRO starts...[don't mention BR or DRO and apply in person/over the phone.]

Best to have at least 2 operational accounts to aid budgeting.

Barclays allowed me internet banking whilst I had a DRO in place. I opened my barclays account two days after my DRO was granted and informed barclays I had a DRO.

The account is good it allows me to do everything a current account does (minus overdraft and cheque book)

Just a word of warning I had other current accounts who I owed nothing to and no overdraft facility but they closed the accounts once they found out I had a DRO (Even though I owed them nothing) so open the basic Barclays account before you do the DRO my advice is.