Bankruptcy advice

Evening. I am currently a Monzo customer with a basic account. No credit facility.
I am or will be going through bankruptcy and trying to find out if Monzo will close my account. Mainly so I prepare to open an alternative account.
I know Monzo accept customers that are already in bankruptcy but what about current customers declaring bankruptcy?
I understand my account will be frozen for a few days but will Monzo allow me to remain a customer?

I have tried to use the app chat but they keep passing me over to someone else that can help for them to do the same.

Any help would be gratefully received.

That’s for the creditors meeting to assess, they will speak to monzo and discuss that.

It’s common to be able to keep basic accounts, and monzo does have the ability to remove lending but that’s never guaranteed and, dependent on the meeting outcome your account could be closed.


I think (not sure) that you can open a co-op cashminder account in your situation. I’d try that now in case your other accounts get frozen.

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I would withdraw some cash now, enough to last a week or two, as any existing or account you open now may get suspended or closed.

I think given you have no credit facility with Monzo it’s likely you will be able to keep it. If not open a new account after bankruptcy is declared.

I think more banks are accepting bankrupts for basic accounts than before. There was a time it was just Barclays and the co-op but I believe that’s passed.

The only issue I can see you having is trying to open an account with one of the banks you have debts with


Nationwide have always offered basic I think, their cards also work with Apple Pay etc, Barclays basic doesn’t work for that.


Co-op seems fully operational. Nationwide one has some limitations.

Check out Bankruptcy & living with it — MoneySavingExpert Forum

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Are you “allowed” to do this when you’re about to be declared bankrupt? How does the process work?

Surely the idea is that you’re saying you don’t have money and wiping your debts, so can you just take what little cash you have and they accept that?

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Generally you are allowed to keep some money for your living expenses etc, you’d know how much that was and you could withdraw that as cash as easily as keep it in a bank account.

However I don’t know if it’s really necessary in this case - if Monzo did close the account it would be a closure with notice, I don’t think they would freeze the account as a bankruptcy isn’t a financial crime or anything. And cash has it’s own risks.

A spare basic account with a bit of money in would probably be for the best.


Hi everyone, thank you for all your insight. Really appreciate it.

The IP will freeze all bank accounts initially while they look at what’s available and they do allow money released for bills and living expenses, I know this. I will be transferring money to a relative to ensure I have funds for food at minimum before payday comes around again.
I’m sure I’ve read that bankrupts can open a Monzo account because they don’t ask if your bankrupt and only do a soft check for identity and fraud so was just wondering if once the account is released from the IP if Monzo allow the account to function.

It’s honestly all so stressful and such a mess. Left with a load of debt since divorce so have no choice.

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And just to add I have no debt with Monzo at all. I opened Monzo only 3 months ago because I initially tried the IVA route. The IVA failed because they were still asking too much from me, they had assessed my payments on current income. That current income was high because I was trying to keep on top of the debts which had me working into the ground. I did tell them that I couldn’t continue to work the way I was because my health was suffering and so was my youngest son as I was never mentally, physically or emotionally available so my income would go down.
Since I reduced my hours to a normal full time wage I simply cannot manage the debts or the IVA so I’ve waved the white flag. I tried and failed.


You are allowed what you need to live a reasonable lifestyle. This is determined by the income and expenditure statement on the bankruptcy application, reviewed by the OR

I am not at all saying withdraw all the cash you want. But I’m saying withdraw what you need to live on, to be safe. You should tell the OR you’ve done this and don’t try to use it to spend on things you know wouldn’t be looked on favourably

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It sounds deeply stressful, really sorry you had to go through that. A lot of people have been caught out by rising costs which no one really predicted a few years ago, so don’t be hard on yourself. Bankruptcy is not the end of the world, and hopefully afterwards you’ll have a much healthier income to live on which will improve your life for you and your son.

If Monzo do close your account, I’m sure lots of us would be interested to know this happens, but I’m hoping they do the right thing and keep it open.


Are you renting ? If not I do wonder why an IVA was suggested for you.

Whilst it’s a slightly less serious form of insolvency, it makes little difference in the end, except the IVA can fail

I’m not sure how current my knowledge is but it also used to be that IVA was 5 years and bankruptcy was 3 years of repayments.

If anyone else is considering an IVA it’s worth getting independent advice. An IVA has its uses, but for many it’s not ideal, but earns the company selling it fees (about £5k I believe)

I have no assets, not a house, car (don’t drive). Nothing of value which is sad at age 46!
They sold the IVA well. Telling me the monthly figure is guaranteed whereas the bankruptcy IPA could be any amount. They dodged around the bankruptcy with ‘we have no idea as we don’t deal with bankruptcies’.

The bankruptcy, even if they suggested a repayment for 3yrs it will still be less than what I would pay in the IVA and considering my current income and expenditure that available amount has severely plummeted because I’ve got myself back into a healthy work/life pattern.

You are correct, IVA or bankruptcy makes zero difference to your financial backing. My nearly excellent credit score is destroyed either way.
I now understand that an IVA is only the best option if you have assets and even then they aren’t safe at the end of 5 years.
Sounds bad but I need the debts gone so I can rebuild my future.


good luck with everything, sounds horrendous. but you do sound like a very bright, clear thinker who will get things sorted.


Thank you. It’s nice to read encouragement. I thought I’d be judged considering the mess I’m in.
It will get better, just need to raise the funds for bankruptcy.


I will come back to this thread once it’s all settled and update what happened.


Life happens. You’re getting it sorted and soon you’ll be able to move on.

Hope it all works out for you and Monzo let you keep your account


Obviously it differs for everyone but I just wanted to give you a bit of hope. I was declared bankrupt 2.5 years ago and Monzo were brilliant with me. They kept my account running, reached out to support me and removed the bankruptcy marker as soon as I was discharged and sent them my certificate of discharge.
I can’t comment on your own experience as I don’t know whether this is the same approach across the board but I can say I’ve found Monzo go above and beyond to help during such a tough time.
I know it’s stressful but there is certainly light at the end of the tunnel and you will get there. Just make sure you follow all the rules of bankruptcy so you don’t get a BRU! I’ve known others get one and it’s much trickier to manage. No gambling, no excessive spending, no credit etc.
You’ll get there!