Bank Accounts for Bankrupts

[diwallis]

Hi, my boyfriend has recently declared himself bankrupt but we are having problems sorting a bank account. He is currently with Natwest and the OR has agreed that if Natwest are happy he can continue to use this account, however he is £150 overdrawn. Natwest have said he can keep the account if we pay the overdraft off, we cant afford to do this! I assumed that as he had gone bankrupt this would be written off? Does anyone know where he stands?

There isnt a Co-op bank anywhere near here, and Barclays he had a business account which is approx £1000 overdrawn so we dont know if they will open him a personal account without having to pay this back?

Any advice is appreciated, Thanks!
Dianne

[sherrardk]

Hi - you could try the Post Office (not sure how you go about it though -they have to invite you to apply) or the Co-op will accept you but it is a pain as they don't have many branches.

[themas]

The Post Office card account is only used for benefit payments.

Unless you need to keep going into the branch, Co-op is best. You could try opening the account over the phone. They allow you to use post offices to pay in cheques etc. and to draw out cash, and normally give you an Electron card.

I don't understand what you say about NatWest. If the account is in his sole name (i.e. it is not a joint account) and the overdraft was incurred before he was bankrupt then it is included in the bankruptcy and he is not allowed to make any payments towards it to NatWest. He would be breaking bankruptcy law by doing so.

However, if the account was not overdrawn when he went bankrupt then the overdraft is not included in the bankruptcy and will have to be paid off at some time - probably by small monthly instalments if that is all he can afford.

[diwallis]

Hi thanks for replies.

Themas - Natwest account was o/d prior to bankruptcy so has been included, however as it was only a basic bank account the official receiver has said if Natwest agree he can keep the account open. However Natwest will only do so if he pays the o/d off which we cant afford to do!

He has since applied at Barclays and we are awaiting a reply, if no joy we will try co-op.