Off Setting the debt means that if your credit card account goes into arrears they can remove funds from your current account to bring the credit card up to date. They do not need your permission or have to give you any notice.  This can leave you short for other essential living expenses suddenly. 

 To safe guard this from happening to you we advise that you open up a new bank account with a bank or building society that you don’t owe any money to or that has connections to your current bank. 

 Before choosing which bank to open a new account with it can be useful to see comparisons against other banks accounts & their facilities.  The money made clear website provides information on basic bank accounts & how much the charges are for unpaid direct debits and standing orders and whether or not they offer that facility.  Some have Connect, Solo, Electron or Maestro facility and have a free buffer zone.  Alternatively contact us on 0800 917 4607 for a list. 

If you are opening a joint account the bank or building society should tell you about extra rights and responsibilities involved.  You should know whether one person can withdraw the entire balance without the other persons consent and whether each person will be liable for 50% of the balance or is each person jointly and severally liable for any debts incurred.  Joint & several liability means that the bank can pursue just one person for the entire balance.

You still can have a basic bank account whilst you are bankruptcy.  Most banks may decline your application for this reason or if you have a record of fraud but we are aware of a few that are happy to accept applications from bankrupts.

 Call us for further information on 0800 917 4607 or download our bank accounts fact sheet – coming soon!