......to help them back onto their feet
Banks should no longer have any excuses to turn down current accounts for bankrupts. Historically, current account providers have steered clear of offering accounts to people who have recently become bankrupt. This is because they fear they will be held responsible and sued for any money spent by the bankrupt which should have gone to their creditors. Barclays is the only bank which will offer an account to people still in the throes of bankruptcy. But under new rules set to go through Parliament, a trustee — the middle man between the bankrupt and the creditor — will have to tell the bank if a creditor is likely to make a claim on money going into the account. This will prevent the bank being later hit with nasty surprises and should encourage them to offer accounts again. In September, the Co-operative Bank pulled out of offering accounts to people who had been declared bankrupt in the past 12 months.....Read more here: Rule change to get banks offering accounts to bankrupts