Credit File and Bank Account After Bankruptcy (UK)

The first sign is usually a declined card, not a letter.

Picture the self-checkout on a Tuesday afternoon. £23.40 of shopping, you tap, and the machine says no. Nothing is wrong with the shop. Your bank has had notice of your bankruptcy and frozen the account while it works out what to do.

Two things decide how bankruptcy feels day to day: what happens to your bank account in the first weeks, and what your credit file after bankruptcy looks like for the next six years. Both are far less frightening once you can see the dates. The wider process is in how bankruptcy works in the UK; this guide stays on money and credit.

What happens to your bank account

Your bank can freeze your account once it receives notice of the bankruptcy, and it decides whether you keep the account or have to open a new one elsewhere. That is the Insolvency Service’s own description. StepChange puts it more bluntly: the account usually closes.

The Official Receiver, the government official who deals with most bankruptcies, will leave you money for essentials such as food, and will release a joint account holder’s share, so your partner is not left without their own money. The bank can still use money in your account to cover other debts you owe it, including an overdraft.

Tell the Official Receiver about every account you hold. They may ask about your bank accounts and vehicles at the interview, which can be by phone, video call or in person (GOV.UK). Money that arrives later is a separate question, because the trustee works out how much spare income you have, based on what you need to live on. That can lead to an income payments agreement running for up to three years.

Opening the next account

Start with a basic account: no overdraft, no cheque book. The Insolvency Service says you may be able to get one and that it is the bank’s decision. Shelter’s guide to the Payment Accounts Regulations 2015 says nine banks must offer basic accounts to anyone who meets the criteria: Barclays, Co-operative Bank, HSBC UK, Lloyds Banking Group (including Halifax and Bank of Scotland), Nationwide, NatWest Group (including Royal Bank of Scotland and Ulster Bank), Santander UK, TSB and Virgin Money.

Shelter also says banks usually do not check your debt payment history for a basic account. If a bank turns you down, it must tell you in writing, with a reason, and tell you that you can complain to the Financial Ombudsman Service. A refusal after a credit check is worth challenging: ask whether a basic account is available instead, because some banks offer one automatically.

The two sources do not read identically. The Insolvency Service stresses that a bank can refuse; Shelter stresses what the nine banks are obliged to do. Ask for the refusal in writing and you will know which applies to you. If every door stays shut, the Insolvency Service points to a prepaid debit card or a credit union account.

Your credit file after bankruptcy: a six-year clock that starts on day one

Bankruptcy stays on your credit file for 6 years from the date it begins. The Insolvency Service and StepChange both say so. The part people miss: the clock does not restart at discharge, the day the bankruptcy ends. That usually comes after 12 months, so by then one year has gone and roughly five remain.

Here is how it plays out for a bankruptcy order made on 14 January 2027. The dates are an illustration, not a prediction for your case.

Two things can move that last date. A bankruptcy restrictions order or undertaking can extend the restrictions for up to 15 years, and the entry stays on your file until it ends, although StepChange calls that uncommon. What triggers a restrictions order is worth reading before the Official Receiver’s interview.

The second is the default date on each debt. StepChange says individual accounts show for six years from their default date, which should fall before the bankruptcy. If a creditor dates a default after the bankruptcy order, you can complain and ask for it to be corrected. What a default is and how it works.

Borrowing in the first 12 months

Until you are discharged, you cannot borrow more than £500 without telling the lender you are bankrupt (GOV.UK). Breaking the restrictions can lead to prosecution. After you disclose, the Insolvency Service says credit is likely to be harder to get and may carry a higher interest rate. StepChange adds that mortgages and new rental homes can be difficult, because lenders and landlords run credit checks and may ask whether you have been bankrupt.

Does your employer find out?

Not officially. The Insolvency Service says your employer is not told unless they are a creditor or you miss agreed payments to your trustee. Some jobs are closed to bankrupt people, and if yours needs a security check you may have to tell HR.

Your name and address are published in the Gazette and on the Individual Insolvency Register (GOV.UK). The register entry is removed after 15 months; the Gazette notice stays (Insolvency Service).

Rebuilding once you are discharged

1. Pull your reports from all three credit reference agencies: Experian, Equifax and TransUnion. Check that the bankruptcy shows the right start date, because that date sets when it drops off.
2. Check each included debt. Default dates should fall before the bankruptcy, as above. Complain to the lender if one does not.
3. Use credit you can afford and pay on time. StepChange says lenders look at defaults, late payments and whether you can repay what you borrow. Keep balances low against your limits; the credit utilisation calculator shows how your balances look to a lender, and the AI credit score roadmap turns it into a plan.

Still deciding whether bankruptcy is the right route? Bankruptcy vs DRO sets eligibility and costs side by side, and how much bankruptcy costs covers the £680 fee.

Questions people ask at 2am

More UK help: UK debt help and how to pay off debt.

Keep reading

• How Bankruptcy Works in the UK in 2026
• Bankruptcy Restrictions Order: What Triggers One
• How Much Does Bankruptcy Cost in the UK? Fee Help
• Bankruptcy vs DRO: Which Is Right for You in 2026?
• Can I Keep My Car, Home and Pension If I Go Bankrupt?
• Bank account when you owe money in the UK: can they refuse

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