Bank accounts for bankrupts – it could get easier!

One of the problems facing bankrupts is the fact that many banks will not let them open accounts.

Since September 2012, only Barclays bank has offered a basic account to undischarged bankrupts.  This makes it difficult for bankrupts to manage their finances properly in terms of wages, paying bills and even obtaining benefits.

Historically, banks have been nervous of allowing bankrupts to open accounts for fear of being sued if the bankrupt spends money on which their creditors may have a claim.

However, the Government has recognised that life has to go on for bankrupts and is in the process of changing insolvency law to provide that the banks will not be liable.

Although this change will not make it compulsory for banks to allow accounts to be opened, it is thought that most banks will take a commercial view and offer basic services to bankrupts.

It is important for anybody facing financial difficulties, whetrher personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.

We have insolvency professionals who regularly give advice to people in York, North and East Yorkshire and North Lincolnshire.  To take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at one of our offices in Driffield, Scunthorpe or York.

Mark Neumegen of the Scunthorpe office of Redman Nichols Butler regularly advices businesses and individuals in financial difficulty in the Scunthorpe, Grimsby, Lincoln, Sleaford and North East Lincolnshire area.

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