Opening a new bank account

[fudge34]

Sorry another one! When I thought I was going through with an IVA I decided to open a new bank account with Alliance and Leicester - I have been with Smile (COOP) for over 10 years and have an overdraft of 900 quid with them which will be taken into the BR arrangement. They have today sent me a load of things that i need to confirm i.e. direct debits, the fact that I need to switch my wages etc - my question is this - is it better to say I now don't want the account and stay with Smile in the hope that when my BR does come through they might allow me to keep an account with them as I have been a long customer - or close the Smile one and open the A&L one and switch everythign over there - I understand that they close accounts when you go BR anyway but the new A&L one doesn't have an overdraft on it but does come with a debit card
sorry am a bit confused as to what to do!

[MelanieGiles]

Speak to Smile directly to see what their policy on allowing bankrupts to retain accounts. With a £900 overdraft, I feel that this is unlikely, but best to check and if the answer is no then you can opt for the Alliance & Leicester - who of course may also close your account upon bankruptcy.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

Hi Fudge, I don't know what A & L's position is on bankruptcy - I don't know if anyone else can help, alternatively you could call their customer services (anonymously) and ask them.

I can't see that Smile would allow you to keep your account with them open as they are a creditor in your BR. I'm not sure if the OR would allow it either.

Accounts aren't automatically closed when you go BR - once the OR has declared they have no interest in your account it is down to the bank whether they allow you to keep the account open. I was allowed to carry on using my Lloyds TSB account after BR, I am now with the Co-op. I closed the account as 1. Lloyds would only let me have a cashcard and I could only use it at their cashpoints. 2. I didn't trust Lloyds not to close it. 3. I don't like Lloyds TSB!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[fudge34]

Hi Skippy
Hope you are well - yes I see what you mean - I guess i just don't want to go to the trouble of changing over to a new bank account now and having to get all my wages etc swtiched if I am only going to be doing again in a month or so's time when I have to find another bank account - I guess I thought the COOP might be more sympathetic or give me a new account as I have been with them for such a long time etc etc - I am trying to do as less as possible with thinking about other things i.e. new banks and trying to focus completely on my BR!

[pippa]

Skippy

How long before you knew that you could keep your account after BR,

Pippa

[fudge34]

Sorry Pippa I don't understand the understand but am totally having a blonde day today!

[Skippy]

I'd already spoken to Lloyds who said I could keep the account, and I rang the OR's office the following week and was told it was ok for me to use it.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[pippa]

No problems Fudge 34, me too I have one most days,

Hope all is well

Pippa

[fudge34]

I haven't even started filling out the BR forms yet online god knows how I will get on then will be asking a million questions! I think I will call Smile tomorrow and ask them - I have to sort this bank account thing out as I have my child tax credits going into it as well as my child benefit, wages etc and I don't want to be left without a bank account as I have to pay my childminder out of this account!

[zoe]

Hi Fudge
I am with nationwide if this helps
xxx

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[fudge34]

Thanks Zoe - I know they offer quite a good account cashplus I think its called - guess I need to fess up to Smile my current account first and then if they say no they do not take BR then go to Alliance and Leicester who may also turn me down when they realise I am BR - just don't want to be left high and dry with no where for my child tax credits, wages etc to go!

[BrassicLintus]

Hi all, I'm having the same problem, I was going for an IVA but on reflection have decided BR is my way forward. My bank account was with Lloyds but they are my main creditors so I switched to Halifax in preparation of my IVA. But I think someone posted that Halifax don't allow undischarged bankrupts, does anyone know if this is true? Also, most of the high street banks that do allow BR's are my creditors too!! Any suggestions?

[Skippy]

I'm not sure about the Halifax but the Co-op and Nationwide both accept undischarged bankrupts.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Skippy]

Natwest don't accept undischarged bankrupts, and have now started closing the accounts of people in IVAs.

Barclays will accept undischarged bankrupts, and with Lloyds it's discretionary - I was allowed to keep my account with them when I went BR.

As far as I know the only high street banks to accept undischarged bankrupts are Co-op, Nationwide, Barclays and Abbey.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Keepingmyheadabovewater]

HI SKIPPY I BANK WITH NATWEST HOW LONG DO YOU THINK IT WILL TAKE BEFORE THEY CLOSE MY ACCOUNT DOWN I HAVE NEVER MISSED A DIRECT DEBIT SINCE I BANKED WITH THEM SINCE MARCH 2006 I AM 12 MONTHS INTO DOING A IVA
DO NATWEST KNOW WHICH COMPANYS OUT THERE THAT DO IVAS

JOHN