Bankruptcy is a legally declared state in which one's assets cannot cover all his liabilities.
This is a state that can be faced by individuals as well as companies.
Once the court has declared an individual or a company bankrupt, their bank accounts are closed.
This calls for alternative arrangements for receiving wages and for paying bills.
There are basically three options when faced with such a situation.
The individual or the company could opt for managed bank accounts with no credit check; prepaid cards also with no credit check or they could go for basic bank accounts normally subject to credit check.
The most popular of these are the managed bank accounts for bankrupts.
People who have not been discharged from bankruptcy could consider either a Barclays cash card account or cash minder account.
The bankrupt person should choose which bank is most suitable.
If you have been discharged from bankruptcy, you should make sure that your report indicates so.
They should then contact the bank and present a certificate to show the discharge and an ID to the bank.
Some accounts for bankrupts offer more features than others.
The individual should therefore be able to make informed decisions that will be convenient to him.
At times, the current bank might choose to re-open the bank account of the individual declared bankrupt.
This will normally take some days and it is not always a guarantee that they will re-open it.
Basic accounts for bankrupts are more reliable as they allow the bankrupt person or company get back on their feet as far as managing their cash flow is concerned.
With this type of arrangement, one is able to do all forms of basic banking activities and also be able to receive payments.