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bankruptcy and using old credit card

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Hi,
I was declared bankrupt, well, accounts frozen then I can use my debit card for salary, etc. I had two credit cards from Lloyds and Nationwide with nill balance, still showing when login to their online site. I called Lloyds this morning if I could use my credit card again and the lady said it's been referred and the bankruptcy department is closed now because of COVID.
So, my question is if the Official Receiver has no interest in assets, cards, etc. can I still use my credit card? Or it will close automatically and what it means to be referred? Thank you
Regards,

Comments

  • fatbelly
    fatbelly Posts: 22,911 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    I presume it means that they've spotted that you are bankrupt and frozen your card.
  • sammy32683
    sammy32683 Posts: 82 Forumite
    Second Anniversary 10 Posts Name Dropper
    They will very likely close your account. Don't spend on it and wait until you've spoken to someone and they have confirmed if it is being closed. I would be surprised if they allowed you to keep it. 
  • cymruchris
    cymruchris Posts: 5,562 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Are you still in your bankruptcy period? If so, then it's immensely unlikely you'll be able to use them. The big banks don't offer credit to people immediately after bankruptcy (at least I've never heard of a case where they do) - and your first credit card once discharged after 12 months would likely be with a credit building card such as Vanquis or Aqua with very high APR's. If you're still only just into your bankruptcy it may be the OR is still communicating with all your account holders to get them closed down. Give us a bit more detail as to when you went bankrupt - and we might be able to help a bit more.
  • shiwen55
    shiwen55 Posts: 124 Forumite
    Fourth Anniversary 100 Posts Photogenic Combo Breaker
    Are you still in your bankruptcy period? If so, then it's immensely unlikely you'll be able to use them. The big banks don't offer credit to people immediately after bankruptcy (at least I've never heard of a case where they do) - and your first credit card once discharged after 12 months would likely be with a credit building card such as Vanquis or Aqua with very high APR's. If you're still only just into your bankruptcy it may be the OR is still communicating with all your account holders to get them closed down. Give us a bit more detail as to when you went bankrupt - and we might be able to help a bit more.
    April this year I went bankrupt, about two and half months
  • cymruchris
    cymruchris Posts: 5,562 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    shiwen55 said:
    Are you still in your bankruptcy period? If so, then it's immensely unlikely you'll be able to use them. The big banks don't offer credit to people immediately after bankruptcy (at least I've never heard of a case where they do) - and your first credit card once discharged after 12 months would likely be with a credit building card such as Vanquis or Aqua with very high APR's. If you're still only just into your bankruptcy it may be the OR is still communicating with all your account holders to get them closed down. Give us a bit more detail as to when you went bankrupt - and we might be able to help a bit more.
    April this year I went bankrupt, about two and half months

    Then I imagine with all that's been happening in the world recently - it's just a case of timing, and in due course the accounts will close. Certainly don't try spending anything on the cards, especially as it's against the law to take more than £500 in credit during bankruptcy if you've not informed the lender yourself first. (I think this is put into place to stop bankrupts going out and getting more credit before the OR has the ability to get everything tidied up, recorded and closed down). It is possible if the bank permits it, that you can continue to use your current account and debit card - but there is a possibility that might go as well. Have you opened a basic bank account just in case this happens?
  • mwarby
    mwarby Posts: 2,049 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    They will very likely close your account. Don't spend on it and wait until you've spoken to someone and they have confirmed if it is being closed. I would be surprised if they allowed you to keep it. 
    I would also add that if you were in debt on this card(or balance wasn’t 0) I wouldn’t use it at all, even if someone says it wasn’t being closed. Perhaps if still open several months post discharge and they confirm it’s ok. 

    As others have said it’s very unlikely (imho as likely as winning lottery) a high street bank would intentionally keep a card open during bankruptcy. For most they would need at least 6 years from date of discharge to consider you
  • shiwen55
    shiwen55 Posts: 124 Forumite
    Fourth Anniversary 100 Posts Photogenic Combo Breaker
    shiwen55 said:
    Are you still in your bankruptcy period? If so, then it's immensely unlikely you'll be able to use them. The big banks don't offer credit to people immediately after bankruptcy (at least I've never heard of a case where they do) - and your first credit card once discharged after 12 months would likely be with a credit building card such as Vanquis or Aqua with very high APR's. If you're still only just into your bankruptcy it may be the OR is still communicating with all your account holders to get them closed down. Give us a bit more detail as to when you went bankrupt - and we might be able to help a bit more.
    April this year I went bankrupt, about two and half months

    Then I imagine with all that's been happening in the world recently - it's just a case of timing, and in due course the accounts will close. Certainly don't try spending anything on the cards, especially as it's against the law to take more than £500 in credit during bankruptcy if you've not informed the lender yourself first. (I think this is put into place to stop bankrupts going out and getting more credit before the OR has the ability to get everything tidied up, recorded and closed down). It is possible if the bank permits it, that you can continue to use your current account and debit card - but there is a possibility that might go as well. Have you opened a basic bank account just in case this happens?
    OR have been informed about all cards, yes, I managed to open a Basic Account before going bankrupt as advised by Step Change. It was frozen for a week but I can use that now for salary etc. Thanks
  • RAS
    RAS Posts: 35,474 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 26 June 2020 at 7:07AM
    Good. Do you have an IPA to pay?  
    Otherwise it might be a good idea to see if you can open a savings account and put aside a little bit to create an emergency fund to cover things like being off work. Standing Order shortly after you get paid. 
    Even a tenner would be a good idea but more is better.
    It'd also allow you to budget for bigger purchases.
    If you've have not made a mistake, you've made nothing
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