Bankruptcy Bank Account

Opening a Bank Account after Bankruptcy

Bankruptcy is usually considered the last resort, but for some people it really is the best way to deal with debt. The best-known benefit of bankruptcy is that it provides a 'light at the end of the tunnel' - after one year, in most cases, once your assets have gone towards repaying your debt, the rest of the debt will be written off and you will be 'discharged' from bankruptcy.

However, there are serious consequences to bankruptcy, one of which is that it would be noted on your credit file for six years. There are bank accounts for bad credit out there, but not all of them accept people with a history of bankruptcy - let alone people who are still 'undischarged bankrupts'.

Bad Credit Rating

Having bankruptcy on your credit file can affect your ability to borrow money for the six years it's on there. You could be turned down when you apply for many bank accounts because the banks 'credit check' you when you apply.

Also, you may be asked in the future (when you try to open an account) if you have ever been bankrupt, so you may need to choose one of the bank accounts for bad credit on the market.

Bad Credit Bank Accounts

Basic bank accounts make excellent bank accounts for bad credit, because they're open to people who've had (or are still experiencing) financial problems. But not all bank accounts for bad credit are open to people with a history of bankruptcy.

Furthermore, if you are still in the process of bankruptcy, or 'undischarged', it can be even harder to find a bank account that will accept you.

However, there are bank accounts out there that are even open to undischarged bankrupts that still allow you to pay Direct Debits and standing orders - as well as giving you somewhere safe to keep your money.