Can I have a bank account if I go bankrupt?
If you go bankrupt, you can still hold a bank account. It is unlikely that this will be a regular Current Account. Instead you would have a basic Cash Card Account. This means that you would have no chequebook, overdraft, Debit card or other lending facilities.
However, you will be in full control of the account. Your wages can be paid into it and you will be able to set up direct debits and standing orders.
Pre-Paid Debit Cards
Clearly using only a Card Cash account with no Debit Card is a hassle, as it means that you have to pay for all your transactions with cash. However, recently a new type of Debt Card called a ‘Pre-payment Debit Card’ has been introduced in the UK. This means that you are able to ‘charge up’ a Debit Card with money, and then use the money on that card for transactions and purchases.
There are now a number of Pre-Paid card providers. You can get a prepay MasterCard from www.mycashplus.co.uk. It costs around 16 pounds initially and 5 pounds per month to use. You can have wages, benefits etc paid directly onto it and its accepted almost everywhere. All you need is a passport or driving licence to obtain this one. Top ups are made at the post office and are free. There is also a prepay maestro card available from www.extremecred.com their card is nine pounds, but you need to purchase online with another debit card, so someone would have to do this for you. Top ups cost 70p from the post office.
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