Bank account after Bankruptcy

JamesPortal91

Hello,

I went bankrupt in 2017 & this is due to be removed from my credit file later this year. I currently have a basic bank account, but would like to get a current account  and a joint account.

has anyone tried this once their bankruptcy had been removed? 

I don’t want it to be refused, thus impacting my credit score. The priority is the joint account as this will have the majority of our household bills and income going into it.

Thanks,

James 

cymruchris

JamesPortal91 said:

Hello,

I went bankrupt in 2017 & this is due to be removed from my credit file later this year. I currently have a basic bank account, but would like to get a current account  and a joint account.

has anyone tried this once their bankruptcy had been removed? 

I don’t want it to be refused, thus impacting my credit score. The priority is the joint account as this will have the majority of our household bills and income going into it.

Thanks,

James 

First off - don't worry about your 'score' - only worry about your history. Positive history is more important than any made-up number that only you see.

Are you on the electoral roll? Do you have other live accounts now associated with your credit history? Mobile phone? Utilities? All up to date? Does your basic bank account report to your files?

Did your bankruptcy automatically discharge after a year - so 2018?

If there's nothing negative on your recent history - I don't see why you now wouldn't get a standard current account. I might avoid banks that you've previously had accounts with when bankrupt, although it seems to be accepted that both Barclays and the Co-op don't mind too much if you are a discharged bankrupt.

The worst that will happen is that they'll say 'no' and you get ONE hard search on your record. (That in itself isn't a bad thing - it's many repeated hard searches that can cause short-term issues).

Did you have a bank in mind that you'd like to try?

JamesPortal91

I haven’t missed any payments since I was discharged. I tidied up my file initially and think everything is correct.

I’m on the electoral roll and utility bills. I also have a credit card which I’ve had for a while now. I haven’t missed any of those payments.

I was discharged in 2018. I’ve been obsessed with it since I was declared bankrupt in 2017. I’ve tried my best to improve things but I am clearly limited with this. I believe I originally applied for a HSBC current account a few years ago (stupid) I was refused obviously and realised I wouldn’t get a current account until the bankruptcy is removed. I currently have a basic bank account with Barclays.

I did ask Barclays about switching to a current account but would need to apply as I would with any bank account.

I was thinking of applying for an account with Santander or Halifax after the bankruptcy is removed. I would have applied with HSBC but I don’t think that will be successful. 

I was going to apply for the current account individually and then apply for the joint account with the same bank. I didn’t want me to contribute to my partner being declined.

kevker23

I would personally try the new challenger banks. Both Starling and Monzo have given me a full current account (albeit without an overdraft) and I am currently an undischarged bankrupt. I can't see why they wouldn't offer you one after being discharged. I found Starling particularly good as an account, the app is really useful and their customer support seems pretty understanding.

cymruchris

HSBC have always been known to be fussy, so I can understand why they turned you down. Not to worry though, by the sound of the progress you've been making, and with some positive markers I would imagine the likes of Santander would take you on. (Assuming they weren't affected by your bankruptcy). I wouldn't ask for an overdraft at this stage - although there's nothing to stop you trying the overdraft eligibility checkers that some banks operate. (You might find you actually qualify for a small overdraft with some banks as you have a credit card and no recent black marks).

MrFrugalFever

From my experience the mainstream banks such as Santander, Lloyds, NatWest, RBS and HSBC are pretty strict and will almost certainly decline a standard current account until all traces or bankruptcy has disappeared from your reports. I would also echo what Chris has said, try to avoid applying with a bank that was actively involved in the bankruptcy as chances are they’ll keep your details and history with them for far longer (I’ve read stories of over 15 years).