BANK ACCOUNTS
Bankrupt Bank Accounts
Bankrupt Bank Accounts
Bankruptcy is one of the most financially stressful things that can happen to someone. Bankruptcy is filed in a situation whereby you are unable to pay your debts to the financial institutions and to your other debtors as you do not have any resources to pay back your debts. When you file for bankruptcy you are declaring that you have absolutely no resources to pay back your debts and request the financial institutions to free you from your debts. When you file a successful bankruptcy claim, all your assets will be frozen and the proceedings from the sale of your assets will be distributed fairly among your creditors. Filing your bankruptcy is a legal process and an official receiver will be appointed by the court to help you with you bankruptcy filing.
Though bankruptcy can free you from your financial stress, it will create a serious dent in your credit history. The effects of bankruptcy remain on your credit history for a very long time creating serious damage. With bankruptcy denigrating your credit history, opening a bank account or applying for a credit card etc will become almost impossible. All the financial institutions will look at you with great suspicion once you have bankruptcy stamped on your files. Financial institutions would not want to do anything with you because you are not a safe person to deal with, in their perspective.
On filing bankruptcy and after successful processing of bankruptcy, your bank accounts will not be usable. You will have to start afresh by applying for new bank accounts. There are different types of bankrupt bank accounts available for those who have filed bankruptcy.
You can either go for managed bank accounts, prepaid cards or basic bank accounts. When you go for managed bank accounts, you will not be subjected to credit checks and the same applies to prepaid cards. However with a basic bank account, the approval of your bank account will depend on the credit check. With managed bank accounts, you will have to pay a small fee but you will be accepted despite your bankruptcy status. You will be able to get a MasterCard that will allow you to shop as well as make cash withdrawals. Most people go for managed bank accounts as the application process is rather simple without the credit check though it involves application fees. This will help you get started afresh and build your credit history slowly over a period of time by keeping your account clean. Here you will also be expected to pay a monthly fee for using the services of the bank.
Getting basic bank accounts is going to be highly difficult so it is best to start with managed bank accounts and once your credit history is built, you can go for basic bank account.
Tags: bankrupt bank accounts, bankruptcy, basic bank accounts
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