News
Insolvency laws set to change on bank accounts for bankrupts
The government is worried that bankrupts are being turned down for basic accounts.
Business Minister Jo Swinson revealed that insolvency laws will be changed across both countries to ensure trustees in a bankruptcy will not always be able to make a claim against a bank who holds a bankrupt's account.
Under new proposals, people will find it easier to open up another bank account after being made bankrupt as banks are reassured that they will not be sued.
Ms Swinson added that a bank account is essential for vital, quick and safe transactions.
"Most of us take these everyday tasks for granted, but for bankrupts attempting to make a fresh start, they can be a whole lot more stressful," she explained.
"Insolvency law can also cause difficulties for the banks, so that's why we're amending it to help them offer more accounts to bankrupts."
According to BBC News, the decision to change the law was sped up after the Co-op announced in September that it will stop offering basic bank accounts to bankrupts.
Posted by Thomas Fletcher
Date published 11 Dec 2012 | Last updated 11 Dec 2012
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