Will Bankruptcy Cause Trouble Opening Bank Accounts?

You will not have trouble opening bank accounts if you are or have been bankrupt. Government regulations require banks to allow individuals who were bankrupt or are currently bankrupt to open bank accounts and apply for various bank services, regardless of financial status. 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. Although there are repercussions associated with bankruptcy (including reduced assets and diminished purchasing power at the onset), filers across the country should not think that they will have trouble opening bank accounts.

The Access to Basic Banking Services Regulations released in 2003 prohibits banks from denying bank accounts and other services to a bankruptcy filer, as long as he or she has not committed fraud or crimes against banks and its personnel, as well as falsifying identifying documents. 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. If you do encounter obstacles in applying for a bank account, for example, you may go to the Financial Consumer Agency of Canada, look for a complaint form, and register a complaint against your bank. For the most part, you will be glad to know that these concerns are usually addressed by the bank itself.

Filing for bankruptcy, though it has benefits as an effective means of debt relief once all other options are exhausted, also has its disadvantages – reduced assets and a reset credit rating are just some of its downsides. Your bankruptcy trustee will ensure that, to the utmost of the professional’s ability, bankruptcy preparations and bankruptcy proceedings will go along smoothly and without as many repercussions on your finances as possible.

Over credit advisors and other providers of debt relief, the certification and training provided by the Office of the Superintendent of Bankruptcy allows the licensed trustee not only to facilitate proceedings and help the filer prepare for bankruptcy, but also to dispense reliable advice on debt relief and establish an action plan that utilizes these alternatives. A trustee is also the best resource for correct information that can help you steer clear of misconceptions such as bankruptcy causing trouble opening bank accounts.

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

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