Opening a new bank account

The timing of opening a bank account can sometimes play an important role in assisting with a smooth bankruptcy. Clearly, even as a bankrupt, you still need a bank account to pay bills and receive money.

The following sections describe the considerations that you should have when opening a bankrupt bank account.

Before going bankrupt

There is nothing preventing you from opening a bank account before you go bankrupt. In fact many people and organisations recommend it. You can open up either a guaranteed bank account or a basic bank account. Basic bank accounts are much more likely to be closed following the making of the bankruptcy order. You are much more likely to be able to keep the guaranteed bank account open following the making of a bankruptcy order.

During your bankruptcy

Opening a bank account during bankruptcy is the same as opening an account before or after bankruptcy. The difference being that you will be an undischarged bankrupt and so your credit rating will be damaged. There will be a small number of guaranteed bank accounts available and an even smaller number of basic bank accounts.

Once you are discharged

After your discharge from bankruptcy the doors begin to open. A greater number of banks will approve your application for a bank account and after a short period some may even upgrade you to a current account.