Future account where debts have been written off?

[Deleted User]

I'm 6 months into bankruptcy, Halifax have left some of my accounts open.

The ones with debts have either been marked as Defaulted or settled with CRAs, but when I signed into online banking the ones where I owed money (former Reward Current Account, Credit Cards etc) have all disappeared, so I'm just left with a couple of bog standard current accounts & easycash basic accounts showing in online banking.

I upgraded 1 to see what would happen, and it went through.

I want to use it as my main account, but what are the implications regarding offsetting etc?

Has the other debt actually been written off yet (as at Bankruptcy date) or is it best to wait until I'm discharged (6 more months), or to wait until 6 years are up and it's off my credit file completely?

The account has been active for a month now, just worried they'll grab all my salary or something!

mwarby

They're not allowed to set off once your bankrupt, you might find that the remaining accounts are closed, even the one just upgraded.

If you can bank with an unrelated bankruptcy friendly bank, at least you won't have to worry about your accounts being closed and the hassle that will bring

owlet

My nationwide accounts didn't get closed until very near my discharge, so they could disappear yet. I'd just leave the accounts be until after discharge.

tigerfeet2006

Halifax are not known to like BR very much and have been know to suddenly close accounts.

TheGardener

mwarby wrote: »

They're not allowed to set off once your bankrupt, you might find that the remaining accounts are closed, even the one just upgraded.

If you can bank with an unrelated bankruptcy friendly bank, at least you won't have to worry about your accounts being closed and the hassle that will bring

I would just go to Barclays and open a basic account (or two) - even if they were a creditor now you are BR they will open a basic account for you. Barclays are the only BR tolerant High St bank for undischarged BR's.
Offsetting would be illegal for any creditor after BR.

[Deleted User]

Thanks everyone - I'm with Barclays but it's obviously very basic.

I'll wait til discharge at least and then see

TheGardener

...unfortunately basic account might be all you get for a few years - many do seem to get upgraded accounts after AD - but just as many seem to get rejected for regular current accounts for years...

Just out of curiosity - what can you do with an upgraded account that you cant do with a basic one? - besides get into debt that is...

[Deleted User]

£5 a month for doing nowt

And contactless - a full auth card is a flipping pain, especially Barclays they seem to take forever to authorise anything. My TSB one seems half decent - that's a 'standard' account though (saw on the screen in branch I've got a 50p overdraft limit though!) not 'basic' like Barclays. Not sure if that means TSB are a tad more relaxed about their authorisations!?

Compared to what my life was like last year, it's a small price to pay - but I want to be 'normal' again one day!

mwarby

I applied for the halifax reward account and was declined, I'm 1 year post completing my IVA and have a credit history very similar to a discharged bankrupt(iva was 1 year only).

Based on this I fear it maybe sometime before you could get such an account, bank of scotland(same group) would only give me a basic account just before IVA, so i think they score quite harshly

tigerfeet2006

Most people find they can't get a 'normal' account until the BR drops off their credit file.

[Deleted User]

Bit surprised at that, but I guess it makes sense.

I know where I used to work they seemed to have an unwritten policy of declining people that had bankruptcy on their report - even though their internal risk scores were good.

Thought once you'd begun rebuilding your credit profile (high APR card, mobile contracts etc) you'd manage at least a 'standard' account

Guess I'm just lucky TSB have left my account open then. I'm using it properly as my main account (with the added bonus of the 5% interest) with all wages etc going into it, so hopefully even if they check up on me again (they do already know I'm bankrupt!) they'll be nice and leave it open...