Will Bankruptcy Cause Trouble Opening Bank Accounts?

Trouble opening bank accounts should not be a concern if you used to be bankrupt. Banks are required by the government to permit once-bankrupt or presently bankrupt people to apply for bank accounts and similar services, no matter what the state of their finances are or have been. Regulations concerning the right of the bankrupt person to access basic banking services were implemented to protect the rights of the filer and strengthen his or her chances at regaining financial stability after filing for or declaring bankruptcy. There are many negative effects that come with bankruptcy, such as diminished assets and finances, which can be problematic enough – the filer should not have trouble opening bank accounts.

If a filer did not commit crimes of fraud, crimes against banks and bank personnel, or the falsification of identifying documents, the Access to Basic Banking Services Regulations mandates the person’s access to bank accounts and other services. These regulations also shield the individual from the detrimental effects of prejudice against those who have filed for bankruptcy. Keep in mind that these regulations only cover applications done face to face, and not those accomplished online or via telephone. The bankruptcy filer has to make a personal appearance at the bank of his or her choice and submit one or more of the following original documents: a Canadian birth certificate, naturalization certificate, passport, driver’s license, SIN card, and health card.

If you have experienced a considerable decrease in income due to bankruptcy, job loss, or investment loss, your situation should not merit the lack of access to basic banking services that may actually help you rebuild your life and restore financial stability. The Financial Consumer Agency of Canada can help you out if you experience difficulties in applying for bank services due to your financial past after you fill out a complaint form and file a complaint versus a bank. For the most part, you will be glad to know that these concerns are usually addressed by the bank itself.

Bankruptcy is still an efficient tool for debt resolution after the individual who files has exhausted all other alternatives, but it does have disadvantages like a downgraded credit rating and the significant loss of assets. To mitigate the negative impact of a bankruptcy filing, make sure that you go to a certified bankruptcy expert for help in bankruptcy preparations and searching for practical means of debt relief.

A licensed bankruptcy trustee is far more preferable to ordinary credit counselors and debt relief providers, as he or she is not only certified by the Office of the Superintendent of Bankruptcy to handle bankruptcy cases and facilitate proceedings, but also to dispense advice on the best debt management options available for your situation. Your trustee will also be an optimum source of info, which will in turn correct misconceptions such as the filer encountering trouble opening bank accounts due to the latter’s financial history.

Trouble opening bank accounts should not be a concern if you used to be bankrupt

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Janell R. Koehler

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