Bankruptcy Bank Account

[wen]

I've read about Think banking, and although they charge per month, the feedback seems positive about them (and you get a Maestro card too [8D]).

Two questions though.

1. Obviously having a bank account appears on your credit record, to prove you've been with a bank with x amount of time etc etc. As Think banking don't do credit checks to open accounts, do they put your details on your credit report, so one day (after bankruptcy), at least you've got proof that you've had a positive bank account?

2. We've recently opened a new account with Lloyds TSB. It is a standard Current Account, but has no overdraft or credit facilities attached. We opened it because they are NOT a creditor of ours and we were hoping to do an IVA... however now removed head from sand, and realised bankruptcy is the way to go, will we still lose this bank account, or have it downgraded to a basic account, or would the Official Receiver allow us to keep it, as there is no huge credit balance or O/D ?

[h_g]

The OR will let you keep it, but LTSB may not. If they don't, then Co-op are a very good choice (if they are not a creditor) I think their basic account also has some kind of debit card.

[mish1953]

hi

Co-op bank account works for me , comes with a Visa Electron card - works like a normal debit card at most places .

Slainte
Mish

Will an automatic discharge hurt.

[Skipper]

Your TSB bank will know when you go BR, believe me.All accounts will be frozen under the OR's orders for a few days I think. If you went for an IVA after opening the TSB account they wouldn't know unless they scout the IVA insolvency register. Unlikely they will do that routinely.
Your current TSB account would have given you a cheque book and cheque guaranteer/debitcard facilities, if your are to go BR I'll be surprise if your OR will alow you to have a chequebook and guaranteer card, even in an iVA a cheque book is not permitted with any bank. I am 90% sure of this.Do check.

A basic bank account is all you are entitled to as those in an IVA but it is not a great lost - minus a visa debitcard/chequebook.

You can open one after you declare BR or before as most Banks will allow for it; RBS and Natwest and possibly HSBC are the only three that wouldn't allow new BR individuals to open a basic account,unless discharged??? I know when you apply to Natwest for a STep account they do ask if you are BR and so does RBS as they part of the same Banking group

Regards

<<My motto:I am proud of black culture and is against racist bigotry>

[Skippy]

Sorry, I have to disagree Skipper. Lloyds TSB didn't freeze my bank account when I went BR, they were happy for me to continue using it. Also, the only banks that will allow undischarged bankrupts to open an account are the Co-op (excellent account) and Barclays. I think Abbey may open an account, but I'm not 100% sure about that.

One other thing - HSBC definitely won't allow an undischarged BR to have an account with them as they routinely close the accounts of people in IVAs.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[wen]

Skippy,

Did you have a classic account with LTSB, or was it just their Cash bank account?

Although I have a cheque book with LTSB, my Visa Debit card does *not* act as a cheque guarantee card, as there is no guarantee limit logo on it. I'd be quite happy to give the cheque book back to the bank or OR if that meant I could keep the Visa Debit.

Of course, if at the end of the day they forced me to downgrade to a basic account, then i'd probably open a Co-op account, as LTSB only offer a cash card, which you can only use in LTSB ATM's & the PO counter.

[Skippy]

I had a Classic Plus account with Lloyds and I asked in my branch whether they were happy for me to keep it and they were. I had to send the chequebook to the OR, and I also sent the debit card as it was a cheque guarantee card. Unfortunately the replacement card that Lloyds sent me was only a cash card, and could only be used at their cash points, hence I'm no longer with them!

I would have a word with your branch and see what their policy is. If they aren't happy about you keeping the account I would definitely recommend the Co-op if only to get the Visa Electron!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Skipper]

Yes Skipper 13, the accounts are fine to keep but as I suspected - without the cheque book or/and the cheque guaranteer card/debitcard and OD facility which effectively makes the account a basic Bank account with a cash card as you say. Ditch TSB.

I won't bother with the barclays as it is only a cashcard you get.



<<My motto:I am proud of black culture and is against racist bigotry>

[Skippy]

Believe me, a cashcard is better than nothing! I have a Nationwide account and I get on fine with the cash card as it can be used at any cash point. I would definitely go for the Co-op account though as it has online banking as well as a debit card and the staff are really friendly and helpful.



Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[wen]

Skippy, are you able to have a joint Co-op basic account?

[Skippy]

I think you can but I'm not sure as Dave and I have never had a joint account.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Skipper]

Nationwide is top dog!

Do they NOW open accounts for Undischarge BR?? I have heard yes and No this forum and a change of policy??

<<My motto:I am proud of black culture and is against racist bigotry>

[Skippy]

Nationwide no longer offer accounts for undischarged bankrupts - I was lucky and applied for mine before they changed their policy. It's a shame as it's an excellent account as you can open e-savings accounts to run alongside the Flexaccount. I've now got bills and savings at Nationwide and spending at the Co-op as I've got the Visa Electron card.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/