Craving More Accounts For Bankrupts?

May 5th, 2014 | By | Category: Info

Many people fall under the impression that declaring yourself bankrupt is a good means of getting out of financial trouble. In the short term, declaring yourself bankrupt will get rid of the majority of your existing debts, however, in the long run declaring yourself bankrupt is very dangerous and very risky.

In March, the government of bankrupt Cyprus struck a bailout deal with the International Monetary Fund and the European Central Bank. The deal was financed by directly stealing from private bank accounts in Cyprus. The Cypriot government and the European Central Bank’s actions are criminal despite the fact that EU taxpayers rightly didn’t want to fund another bailout of a badly managed economy. This is what the Daily Mail had to say about it :’ People who rob old ladies in the street, or hold up security vans, are branded as thieves. Yet when Germany presides over a heist of billions of pounds from private savers’ Cyprus bank accounts, to ‘save the euro’ for the hundredth time, this is claimed as high statesmanship. It is nothing of the sort. The deal to secure a 10?billion German bailout of the bankrupt Mediterranean island is among the nastiest and most immoral political acts of modern times. ” Cyprus is now another burial in the graveyard of globalization.

When you declare yourself bankrupt your credit rating will go through the floor. No one is going to advance any funds. This means you’ll not get any kind of credit agreement of any type, even the ones where almost anyone can sign up for such as mobile phone contracts and paying for insurance on monthly basis.

Reforms to make it easier for banks to offer basic accounts to undischarged bankrupts are set be introduced. But a legal change will reassure banks that they are unlikely to be sued, if a bankrupt uses an account to spend money on which creditors might have a claim. But she added that providing the accounts would not be compulsory, and would still be a commercial decision for each bank. A consultation on changing the law took place a year ago but …

When you declare yourself bankrupt your banking arrangements go out the window and a bank account that offers debit cards, credit cards, check books, overdraft facilities etc. will be withdrawn and your bank account will be downgraded to the most basic of all bank accounts. Whether you consider this treatment right or wrong it really does not matter since that is how you’ll be treated and there’s nothing you can do about it. If you are thinking changing banks will help, think again, as you’ll be refused for all bank accounts as you will not get through the credit checks.

The basic bank account, as its name suggests, is a ‘no frills ” basic bank account which offers a small number of features. This account enables you to have your salary and wages paid in to it, as well as making payments by standing order and direct debit. Some offer a debit card, although most don’t.

Some high street banks offer a basic account, but not all of them so you may be unable to find a branch that is right on your door step. Since most of your banking will be done in branch this could create a few more problems and increased costs in respect of travel and parking.

The basic account is the closest account to a current account an un-discharged bankrupt can have, although you may not be eligible for it right away.

As long as a person is over eighteen years of age, and can prove their identity they’ll be eligible for a guaranteed bank account, therefore, it is one bank account an un-discharged bankrupt can have.

When you open a guaranteed bank account there are no credit checks to go through, so this account has no credit facilities whatsoever. With a guaranteed bank account you have a one to one account manager. This should help you get home on the right track. With a guaranteed bank account there are no hidden charges, fees or interest. You won’t get a credit card or debit card with a guaranteed bank account, however you can then use a prepaid credit card in place of a conventional card should you wish.

Bank accounts for bankrupts offer almost all the basic features that one gets in there bank account. Some banks also provide you the cash machine card with the account so you can withdraw from ATMs to meet with your expenses. Debit cards are also available by some institutes to provide more convenience to their account holders.

UK citizens can easily avail these banking facilities with the aid of online medium. From your home or office you can call the banks to provide you these services. To contact them you just need to fill online application that is available free of charge on their websites. Then they’ll get back o you and help you to open bank account for bankrupts.

Regaining your credit score and getting access to normal bank accounts is going to play a long time and a great deal of hard work and effort when you have declared yourself bankrupt. It is a long road that will take hard work and dedication. This is something most people aren’t made aware of before they declare themselves bankrupt.


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