Changing Your Bank
10th March 2015
There may be a couple of reasons that you will need to change your bank when you enter into an insolvency arrangement. Firstly if you have an overdraft on your account that has a negative balance, this is considered a debt as much as any credit card or loan and so will need to be included in your arrangement.
Secondly if you have a separate debt with the bank that you have your current account with, then it is unlikely that they will allow you to continue banking with them. Finally, there are some banks and building societies that will not allow their clients to continue banking with them and so you will also need to change. Your case officer will be able to advise you as to whether you need to change your current account.
When opening a new account, you will need to open a standard account with no overdraft facilities.