Co-op shuts out new bankrupt customers "Over the years we have worked tirelessly to promote access to banking, for example by providing bank accounts to some of the most financially excluded groups such as prisoners, as we do believe that banks should play their part in offering people a fresh start," said John Hughes, managing director of retail banking at the Co-operative. The British Bankers' Association supported the Co-op's stance. "A very small minority of people in financial difficulties ultimately opt for bankruptcy, and of those who do, fewer still want to open bank accounts while undischarged," a spokesman said. Of those who do, fewer still want to open bank accounts while undischarged. Banks who accept bankrupt customers open themselves to potential legal challenges from their customer's creditors, who could have a legal claim to money passing through the account. The banks are currently working with the Department of Business, Innovation and Skills on this issue to ensure as many people as possible enjoy access to the banking system. Bankruptcy normally lasts for 12 months. After this time, a bankrupt is usually automatically discharged (freed) from the debts owed in their bankruptcy and the bankruptcy restrictions. The discharge can be earlier if the Official Receiver (an officer of the bankruptcy court) finishes looking into the affairs and the creditors don't object. People who have been made bankrupt are generally only allowed to open a basic bank account. There are twenty of these available but only Barclays no allows undischarged banks to sign up. The Co-op said existing customers in this situation would not be affected.