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By Geraldine
It looks as though your Metro account will remain in use Casey. Given you went bankrupt 2 months ago if they were going to close it they would have done so by now. This is certainly interesting. I would be interested to know whether it is Metro's policy to allow people to keep their accounts open after bankruptcy as that would give people going bankrupt another option.
By Casey
Dear All,

I have meanwhile done a little research on the issue and as it stands it is apparently not uncommon for most high street banks to let a bankrupt keep the account open provided that they did not have any debts with them. There has been a paper by the Citizen A B a proposal to the government and some research was done on this issue. So, the message, I guess is, open a proper bank account a few months before you declare bankruptcy with a bank you have no debts and keep the account in good order and then there is a good chance you will be able to keep it, do not opt for an overdraft or credit card, that is what I did. Nothing heard as yet from the Metro, so I shall leave it for another while and then perhaps use it a bit. I will not change my direct debits and others again as too much of an effort so will stay with Barclays, even though no online banking but that is not the end of the world after all, most important functions are still working, namely, I have a debit card where I can pay in shops, get money from cash points and pay online and money can be paid into my account eg JSA or any future salary. So that is worth gold, 10 years ago nobody had online banking so that is the way I decided to look at it :D Thank you again for all your brilliant work
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By Geraldine
Hi Casey

I have just heard about someone who opened a simple bank account with HSBC before they went bankrupt and HSBC have allowed them to keep this account open so this backs up what you are saying. Perhaps the banks are finally relaxing there position about bankruptcy.... I do hope so.
By Casey
Hi Geraldine,

This is good news for everybody. It does make sense that the bank allows you a basic account, because you cannot possibly misuse an account where there is no credit, no credit card etc, in actual fact the bank still benefits from the money which is in your account, albeit not as much as in the case of people earning a good salary and spending everything, but nevertheless even JSA will stay in the account for some time and the bank can work with this money. Letting a person who is bankrupt keep a simple bank account is no risk for the bank at all, in my opinion, so they might have woken up to that fact. In my case, I am now certain that the Metro bank account will stay open, because nothing has happened and I still receive statements online.

Kind regars, Casey
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By James Falla
Hi there Casey and all.

It is good news that HSBC and Metro seem to be more willing to help people who are bankrupt.

It is my personal opinion that the reason why many banks have been so reluctant to help bankrupt people simply boils down to money. A bank can only actually make money on an account customer if they lend to them (ie with a credit card or loan). A customer who simply uses an account for money in and out and never borrows actually costs the bank money..... Clearly there is really very little hope of making money by lending to a client who is bankrupt as they are unable to borrow. As such the reality is that this type of client has very little commercial interest for any bank in the short to medium term which is what banks are measured on by their shareholders....

Of course this is not something that the banks will admit publically as they would be slammed for it in the media. So instead up until very recently they have hidden behind a small part of insolvency law which said that a bank could be made liable for any payments they allowed to be made from a bankrupt's account. The fact is that this rule was very rarely used by official receivers but the banks were always able to point to this when asked why they did nothing more to support bankrupt people.

Thankfully this rule was changed by the Government in September 13. As a result the banks can no longer hid behind it and perhaps this is the reason why the likes of HSBC are suddenly becoming more helpful towards bankrupt people. Hopefully other banks will now follow suit...... The Government certainly hopes so. We will see.
By Casey
Hi James,

that is indeed very interesting. I think, however, that is where one of the main problems lie in this country regarding consumer debt. I believe that the banks work with the government it is all on purpose to control the economy. The government does very little to constrain the banks from throwing loans and credit cards to the gullible consumer......because this will increase spending. Banks make already money by simply working with people's money which they have in either accounts or saving accounts? I think the whole thing stinks first they throw the loans at you and then when you are without money they don't even want to give you a basic bank account...So, hopefully, as you are saying this is now changing a bit.

Kindest regards,