Opening a bank account if you're a discharged bankrupt
'A discharged bankrupt' is the technical term for someone who's successfully finished bankruptcy.
In most cases, bankruptcy lasts for a 12-month period, although you may be expected to make payments towards your debts for up to three years.
Once your bankruptcy has successfully ended, you'll probably be looking to 'start afresh' with your finances and get them into shape for the future - and one obvious place to start is by opening a bank account.
However, this could be easier said than done. Bankruptcy will affect your credit rating for six years from the day it begins, so you may well find you're turned down when you apply for a bank account.
So you might want to look into basic bank accounts: accounts which are open to people who've had debt problems in the past, including bankruptcy.
That's because they don't require a 'spotless' credit rating. In other words, a basic bank account could be the ideal bank account for a discharged bankrupt.
But it's not your only option. There are other kinds of account available these days, such as the thinkmoney Current Account.
The thinkmoney Current Account
The thinkmoney Current Account isn't a bank account. We're not a bank: what we provide is an alternative to a bank account for discharged bankrupts.
Anyone can apply for the thinkmoney Current Account. There's no credit check, so as long as you're 18 or over and a UK resident, just click 'Apply now' on this page.
It'll give you a convenient way of managing your money and keeping on top of all your expenses as you get back on your feet after bankruptcy. For example, you'll have:
- Somewhere to get your income paid into
- Access to online / SMS account management
- Access to Direct Debits and standing orders
- Money Managers helping you budget and get your bills paid on time
The account costs £10 per month (£15 for joint accounts) - but you'll never be charged for missed or rejected payments, so there are no nasty surprises.
Help from Money Managers
The Money Managers are a major part of our service. They're there to separate your money into two accounts. Your Salaries Account is for all the essential bills you've told them about; your Card Account is for your spending money.
In other words, you'll know the money in your Card Account really is yours to spend: you'll know you don't need it for something vital, like paying your mortgage / rent
But that's not all our Money Managers do. They'll also look out for any potential cash-flow issues up to three months ahead, so they can warn you while there's still time (hopefully) to avoid them.
With no overdraft facility and expert help getting your bills paid, our account could really help you work on improving your credit rating - and if you've just been through bankruptcy, that might be pretty high on your list of priorities.