What a mess!

Lttlmystry

Hi my husband of 30 year has taken out 2 bounce back loans for his business during lockdown one in july and 1 in November these loans were 100% guaranteed by the government. The business is in his name only and in no way connected to me and I had no idea he had even applied for them. My husband became extremely unwell in March a manic episode that spiralled into psychosis resulting in him being arrested then sectioned for 12 weeks, in hospital he was refusing medication then discharged with no aftercare. He became very manic once again and basically neglected his business then was sectioned once again in dec until the end of January this year. He has now hit rock bottom and the reality of what he has done is crippling us I rang for advice from the business debt line and I’ve decided to take the bank on for irresponsible lending as these loans were applied for online and no checks done. 

The mortgage is in my name only as is every household bill and we have separate bank accounts my biggest question is could they come after my home for to clear his debts? I’m sorry if this is long winded but the stress of it all is really getting to me and I’m so scared I’m going to end up homeless any advice would be much appreciated thank you.

Billy_B_North

The bank is under no obligation to carry out checks for business lending, and the protectin guven to cinsuers doesnt apply either.
It sounds like your husband applied, rather than was "sold to", so I'm not sure why you would alege mis-selling.
A debt of his company is exactly that, a company debt, so is unconnected to your home. Have you or your husband guaranteed anything personally, or borrowed any money yourselves from the company?

Lttlmystry

I did not even know about it and like I said the government 100% guaranteed these bounce back loans he didn’t even sign anything as far as I’m aware and I don’t think he’s ever borrowed from his company 

zzyzx1221

Lttlmystry said:

I did not even know about it and like I said the government 100% guaranteed these bounce back loans he didn’t even sign anything as far as I’m aware and I don’t think he’s ever borrowed from his company 

The Government backing these loans doesn't mean that people can just stick two fingers up and the banks will trundle off to the Government, get the money back and that's the end of it. Banks are expected to use normal recovery techniques to recover the debt and only if that fails will the Government pay them back. It won't likely mean the debt is written off however, it will likely be sold off to DCAs who will continue to pursue it.

You need to find out what he agreed to and if there are any personal guarantees in there (as it sounds like there are.)

An irresponsible lending complaint will fail. He applied as a business and is expected to know what he is agreeing to, or pay someone to explain it to him.  You can't play dumb like consumers can.

Grumpy_chap

Is the business a Limited Company?

enthusiasticsaver

Bounce back loans are not secured so I don't see how they can take your property.  There is also protection now or will be from May for people with mental health difficulties who have debt.  Are you repaying the loans or have you asked for an extension? 

enthusiasticsaver

Have you read MSE advice on how they work etc?  
'Bounce back loans' – help for small businesses and income support for those missing out elsewhere, eg, limited company directors and self-employed (moneysavingexpert.com)

macman

Basics: is his business operated as a limited company or a sole trader? If the former, any debt cannot result in the loss of your home, as it's a debt of the business, not of your husband as a director of the business.
Are you the sole owner of the house according to the deeds? Who pays the mortgage or bills is not relevant.
As pointed out above, these are unsecured loans, underwritten by HMRC.
PS: you can't 'take on' the bank for someone else's loan, even your spouse's. Only he can do that, unless you have a POA, which may not be possible now unless he is capable of consenting.

zzyzx1221

macman said:

Basics: is his business operated as a limited company or a sole trader? If the former, any debt cannot result in the loss of your home, as it's a debt of the business, not of your husband as a director of the business.

If there is a personal guarantee, then it could do.

macman

Personal guarantee on a BBL? I don't think there is any such provision for that. The BBL loans are entirely unsecured.