Bank Accounts Questions

BlewIt

HI,
I am currently going through a process of sequestration / Trust Deed - not sure which yet.  Was going to be Trust Deed but the recent Corona Virus outbreak may very well wipe out my spare income for the trust deed, and therefor make it unlikely to be accepted.  Anyway, I have an £83k debt to HMRC that needs dealing with.

I currently have several bank accounts and was wondering what might happen with them.
- RBS Current Accounts x2 - both have unused overdrafts
- RBS Joint Platimum account - joint with my wife.  Premium account (£20 a month) with no OD facility
- RBS Business account - Sole Trader, no OD facility
- Starling Personal Account - as yet unused, all this HMRC business kicked off just after I set it up
- Starling Business Account - as yet unused, all this HMRC business kicked off just after I set it up
- TSB Basic account - as yet unused, applied for it when all this kicked off, fall back account

Are any/all of the accounts likely to be frozen and then closed?
Should we close the joint account?  My wife has nothing to do with the sequestration process, it is purely my problem.
I was considering changing my company to Limited but that's probably not going to happen now that it is likely to be a sequestration and not a Trust Deed.
I'd like to start getting my ducks in a row if possible.  Anything else I should change?

mwarby

The RBS accounts are likely to be closed or downgraded to foundation accounts (basic accounts). I would close the joint account, to protect your wife’s credit history.

The TSB basic account most likely ok, but not heard much about how they treat insolvent customers

devon_guy

One of Starlings T&Cs is that if you are declared bankrupt/insolvent then they will close your account.  I am currently fighting this with them as I don't have an overdraft with them nor am I in debt to them so why should my account be closed?  They are allegedly still looking into it.....

mwarby

Starling accepted me as a customer (with a small overdraft) a few year after I became insolvent (but was still on my credit files).

Chazzagxox

Id Get them down to Just TSB and RBS - These are The Accounts that are More Likely to be Closed First, as TSB is Picky With Its Customers. If you have a TSB basic Account, then maybe Just keep that ? - your Only Supposed to have One Basic account with One Bank. RBS arent usually too picky, But if left Unused for One year, then they will write you a letter asking you if you still want it .

Fighter1986

Close the joint account.

All the accounts will be frozen and even basic accounts might be closed by the bank.

My HSBC Basic account was closed when I declared BR despite the fact I didn't owe HSBC a penny and the account was run flawlessly. I opened an account with Monzo after being declared BR and have been using it since. 

Personally though I think Nationwide offer the best Basic account facilities. I'm in the process of switching to them. 

mwarby

Fighter1986 said:

Personally though I think Nationwide offer the best Basic account facilities. I'm in the process of switching to them. 

I agree until a couple of years ago I could only get basic accounts and tried a few. Nationwide were the ones I stuck with(and a couple of challenger online only banks), they were one of first to do contactless and Apple Pay for instance