Chat with us, powered by LiveChat
Call for obligation-free advice 1300 060 122

Bankruptcy and Your Bank Account – What You Need to Know

Bankruptcy and Your Bank Account – What You Need to Know

When you become bankrupt there are a few things that are important to know to help keep your income safe and protected. The way you set up your bank accounts is an important part of this process.

Here are a few tricks and tips for your account set up:

  1. You can manage your own bank account during your bankruptcy. It remains separate from your trustee, and they do not have access to it in any capacity.
  2. You can have a debit card linked to the account.
  3. Any savings from wages accumulated in the account are safe and will not be absorbed by the bankrupt estate. This remains true even when you are discharged from bankruptcy. They are yours to keep.
  4. There are no caps on the amount of money you can have in the account. Any money accumulated are yours.
  5. Following on from point 3, any savings you do have must stay in an everyday bank account. You cannot hold funds in a savings/investment account or IBD.
  6. Review all direct debits linked to the account. Cancel any that are linked to creditors who have been taken care of by your bankrupt estate.
  7. If you would like to change bank vendors or open/close accounts, you can do so without needing approval from your Trustee. Some people chose to swap accounts as they find it difficult to stop direct debits that are no longer appropriate as the bankrupt estate has absorbed this debt.
  8. If you would like to open a joint account you can. Some people chose to do this with their partner to make everyday spending like grocery shopping easier.
  9. You can set up direct debits on the account to help pay for routine bills such as Netflix.


As part of the bankruptcy process, your Trustee manages a trust bank account linked to your estate. This account is at the discretion of the Trustee and has no involvement from you.

For further information on bankruptcy, we recommend our articles Pathways to Bankruptcy – Essential Facts, Life During Bankruptcy and The Bankruptcy Option Explained.


Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 782 614 or email



Alan Nicholls - Registered Trustee

Alan Nicholls’ no obligation help desk

Nicholls & Co provide a free, no obligation ‘help desk’ for people considering bankruptcy – we discuss and explain bankruptcy and answer questions for anyone who is considering bankruptcy. The Nicholls & Co help desk can be accessed by phone  
1300 060 122  or . Alan Nicholls, Registered Trustee in Bankruptcy is also available to answer your questions to enable you to decide if bankruptcy is right for you.