On the day you are declared bankrupt all bank accounts you have are frozen for review. It is the bank's decision whether or not they will continue to do business with you. In the event that they don't we can arrange for an alternative bank account that will allow you to continue as usual.
What happens to my bank account?
Your bank account will usually be frozen permanently if you have any debts with the bank, such as an overdraft, loans, credit cards. However, some banks just refuse to have accounts with undischarged-bankrupts.
We recommend that you contact your bank once you're made bankrupt to find out if you'll be allowed to keep the account. Depending on how long you've been with the bank, and what debts you have with them, if any, will be considered.
Most banks will refuse to open an account for undischarged-bankrupts, but there are still plenty of facilities available for people in bankruptcy and again we can offer you guidance and support on this.
What bank can I use?
The bank we recommend the most for undischarged-bankrupts is a Co-op Cashminder Account. It does not cost anything to have and comes with facilities for direct debits and standing orders, as well as a debit card.
Only open the account after you've been made bankrupt. If you open it before, when it comes to your court date, the account may be frozen. Sounds strange, but it does happen.
Complete our short enquiry form to see how we can assist you and we will call you back. Alternatively you can contact us.
It could be that bankruptcy is the most suitable debt solution for you.
You may hear that bankruptcy should be considered a last resort, and that you should try an IVA (Individual Voluntary Arrangement), IPP (Informal Payment Plan) or DMP (Debt Management Plan) first, but this isn't always suitable. What's right for you depends entirely on your circumstances as these are all solutions to the same problem, but tackled differently.
You may find that you would benefit from professional help in completing your Statement of Affairs and Bankruptcy Petition.
From the time that you decide to apply for a bankruptcy order, to the day that you are declared bankrupt, you may seek assistance in order to keep your creditors and bailiffs at bay. In addition, performing your own research into bankruptcy often results in receiving conflicting information, depending on the source(s).
Personal bankruptcy for Scottish residents is called Sequestration.
To be sequestrated you must owe at least £1,500 and either: one or more of your creditors must have taken you to court to enforce or demand you repay a debt or you must have been on a debt payment programme under DAS that has been revoked and one of the creditors in the DPP have been to court and obtained a decree on one of the debts.
You are immediately free from debt and will not be responsible for any of your pre-existing debts.
It is a fresh start for you and your family to start again and build yourself up from a position of strength. You are immediately protected from all your creditors who form part of your bankruptcy.
Clear Insolvency is trading name of Hamilton and Clarke Ltd.
Registered in the UK. Company no. 6465374. Consumer Credit License (UK) 612841
Clear Insolvency, 27 Old Gloucester Street, London, WC1N 3AX
