Money Advice, Debt Advice & Debt Help
Can I have a Bank Account if I go Bankrupt?

Can I have a Bank Account if I go Bankrupt?

Can I have a Bank Account if I go Bankrupt?

You can have a bank account if you go Bankrupt. However you will normally need to open a basic account if you have not already got one.

Included in this article:

Rather speak to a person? Call 0800 077 6180 or fill in the form below and we’ll call you

Can I have a bank account if I am Bankrupt?

It is possible to have your own bank account if you go Bankrupt. What happens to the account you are using now? When and how should you open a new account? To find out more please visit:

Can you keep your Bank Account if you go Bankrupt?

There is nothing to stop you having a bank account in your own name if you go bankrupt. However most banks will not allow you to use a current account. This type of facility will be frozen whether the bank is owed money or not.

As an alternative you can open a basic account. These accounts are free and can be used during bankruptcy. They provide all the facilities you need such as a debit card and internet banking but offer no credit.

Depending on the bank you chose you can open a new basic account before you go Bankrupt. You can start using it straight away. It will remain functioning after you go through the application.

If you are already using a basic account it is likely that you will be able to continue using it after you go bankrupt. However check with the bank first.

How to open a new Bank Account for use when Bankrupt

Many high street banks now offer basic accounts which can be used while you are bankrupt. It is therefore relatively simple to chose one which is convenient for you.

Depending on the bank you pick it is normally advisable to go into a local branch to open the account.

If you are unsure whether the account you are considering is suitable do not be afraid to ask. Explain to the bank that that you plan to go bankrupt and check the account will remain open.

Be honest and tell the bank you are planning to go bankrupt. Explain you are looking for a basic account which will remain open and they will normally be ready to help you.

List of Banks which provide Free Basic Accounts for use if you are Bankrupt

A list of banks which are known by Beat My Debt to offer basic accounts which remain open after bankruptcy is given below.

All of these banks offer their basic account for free. You will get a debit card, internet banking and be able to set up direct debits and standing orders from the account.

– TSB Basic
– Lloyds Basic (open after you are bankrupt)
– Halifax Basic
– Barclays Basic Account (no internet banking once bankrupt)
– Co-Op Cash Minder Account (Can only be opened before going Bankrupt)
– HSBC Basic Account
– Nationwide Flexbasic Account
– NatWest Foundation Account
– Santander Basic Account
– Virgin Essential Current Account
– Yorkshire Ready Cash Account

Some banks will let you open their basic account before you go bankrupt. Others will ask you open the account after you are bankrupt.

Should you pay for a Bank Account?

Some companies offer a Managed Account service. You will certainly be able to open this type of account for use after you go bankrupt.

The account is known as managed as it helps you budget. Once your income is paid in the cash you need to pay all of your regular monthly bills is moved automatically into a “bills account”.

As a result of this you should always have sufficient funds available to pay your priority expenses. However these types of accounts come with a cost. There is normally a monthly fee of £10-£20.

A Managed Account is really only beneficial if you truly struggle to manage your money. If you can organise your budget yourself it is unlikely to be worth paying for this service.

What happens to your Business Account if you go Bankrupt?

You can go bankrupt if you are self employed. However your business bank account will normally be closed given it is a current account facility.

Clearly if you want to carry on running your business having an account that you can use will be important. However most banks will be reluctant to offer you a new business account once you are bankrupt.

One way to resolve this is to open a second personal account to use for your business. You will have no credit facilities. However you will be able to pay in cheques if necessary and keep your business and personal transactions separate.

Arrange a call with a Bankruptcy Expert

    Need help with the bankruptcy process?

    Privacy Policy
    Your information will be held in strictest confidence and used to contact you by our internal team only. We will never share your details with any third party without your permission.

    2 thoughts on “Can I have a Bank Account if I go Bankrupt?

    1. Henrieta says:


      How long will my bank account be frozen for if I go bankrupt?

      1. Hi Henrieta

        If you go bankrupt you are allowed to have a bank account. However if yours is a current account you will no longer be able to access it a few days after you go bankrupt. You will have to open a basic account to use instead.

        Depending on the bank you chose you may be able to open this account before you go bankrupt. If you do it may not be frozen at all. Many basic accounts simply continue without any problem.

        There are a few banks (for example Santander) who do freeze even a basic account temporarily. However they will unfreeze the account as soon as they get confirmation from the official receiver that it is OK to do so. This will normally come through within a matter of hours of the account being frozen.

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Learn how your comment data is processed.