New bank account whilst becoming insolvent

Snwps · 14 August 2019 at 10:23AM

Firstly, I hope I'm posting in the right thread, apologies if not.

My sister is currently in the process of Insolvency (being assisted by Citizens Advice Bureau). She has an overdraft with her current bank account with a high street bank but hasn't been made aware that a new clean bank account should be set up before the insolvency completed.

Am I right in thinking that she should set up a new basic clean bank account with another bank ASAP?

Can you have a bank account after this completes?

Her current bank will close her account, is that right?

Thanks.

TheGardener · 14 August 2019 at 10:29AM

Yes, you can and must have an account after BR. Her current bank will close all accounts if there is a debt. She can open a new one either before or immediately after but she will need to specifically ask for a 'basic 'account - Barclays were a long standing provider of these accounts to BR's even if they were a creditor. Nationwide has a good reputation but make sure you select the zero overdraft facility.

terrence45 · 14 August 2019 at 11:13AM

Nationwide FlexBasic is good and super quick to set-up. Virgin essential account is also good, but very clunky and you had to go into the branch to do anything (they didn't have an app when I used them, and sent paper statements every month!).

You can set it up before or after insolvency - it should remain open if opened up in advance (mine did).

Snwps · 14 August 2019 at 2:37PM

Thanks for your help, cheers.

Oliver2809006 · 14 August 2019 at 8:21PM

Yep I got a basic Barclays account - can do Direct Debits and debit card so covers most angles.

Obviously no overdraft.

New bank account whilst becoming insolvent

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