Banking and Bankruptcy

In the past if you were going bankrupt or already bankrupt, finding a bank account could prove difficult, it is now going to become even more difficult.

As a bankrupt you are allowed a basic account whilst bankrupt, but finding a bank that will grant a bankrupt a basic account was the tricky part. Many banks have internal policies and procedures which would exclude someone who is bankrupt, or going bankrupt.

Previously Barclays and the Coop Bank had stated they would grant a basic account to someone bankrupt if they did not owe them money or have a history of fraud.

Now the Coop Bank has stated they will no longer offer accounts to undischarged bankrupts. This will not affect current customers, but new banking customers.

The Coop Bank has stated that for too long there has been an “un-level playing field”. Meaning not enough banks are offering accounts to bankrupts, and all banks should work together, equally to help those that who are excluded.

This actually just makes things worse for those going bankrupt.

The Coop Bank feels they have a disproportionate share of this market and they feel now they need to address it.

More on this as it develops. I will also be checking to see if there are any other banks that work with people facing bankruptcy and who are already bankrupt. If anyone knows of any other banks, please contact me or post it here in the forum.