Bankruptcy Bank Account?
Bad Debt Consolidation by splinder
Filed under Bankruptcy
When one files for bankruptcy, most of their assets are auctioned. If there are more liabilities than assets, one cannot afford to have a bank account. However, it is very difficult to manage one’s finances without a bank account. Interestingly, bankruptcy does not prevent a debtor from opening a bank account.
Many banks offer a bankruptcy bank account to individuals and businesses that go bankrupt. However, it is not available for free, one has to pay extra money. These banks provide some facilities to keep a check on the applicant’s credibility. It is important to note that one may not be eligible to apply for loans after acquiring a new account.
Bankruptcy Bank Account: Types
Once bankruptcy is filed, the bank accounts of the debtor are either closed or frozen. Therefore, to pay one’s bills and receive wages one has to look for alternatives. One can choose from the following options:
Managed Bank Account: This is the best option because it accepts even bankrupts. The applicant is required to pay a small fee. A managed bank account offers the following facilities:
- No credit check to open the account
- No hidden fees
- A MasterCard for shopping and cash withdrawals
- Standing orders
- Internet & telephone banking
Prepaid Cards: Another attractive option for those who have declared bankruptcy but want to rebuild their credit worthiness is to apply for a prepaid card. Cashplus prepaid cards offer guaranteed acceptance. One can receive one’s wages in it. Cashplus prepaid cardholders can set up standing orders.
- Credit checks are not required
- Bank account is not required.
Basic Bank Accounts (subject to credit check): A number of banks offer basic bank accounts to those who have filed for bankruptcy. Whether you are a discharged bankrupt or an undischarged bankrupt, you can have a basic bank account. All you need to do is conduct some research and comparison shopping to find the best bank to have a basic account with. Many banks that offer accounts to bankrupts provide information online that can be accessed from the comfort of one’s home.