Bounce bank loan

Hammers01

I took out a bounce back loan of £12,000 last March. The business I work in as been effected by Covid and I am now on UC. I am already in a 60 month IVA scheme. I have used the bounce back loan for business costs.
Its time to cut my losses. Can I write the £12,000 off or can I go into some kind of repayment system like an IVA?

MattMattMattUK

Hammers01 said:

I took out a bounce back loan of £12,000 last March. The business I work in as been effected by Covid and I am now on UC. I am already in a 60 month IVA scheme. I have used the bounce back loan for business costs.
Its time to cut my losses. Can I write the £12,000 off or can I go into some kind of repayment system like an IVA?

If you are self employed then no, you have to repay it.  If the loan was taken out by a limited company which you own and operate then provided you follow the rules for winding up a business in debt, and provided you did not pay yourself any of the loan, then in theory yes. 

Hammers01

Thanks for that. Do I Need to go through and company that deals with business debt if so can you point me in the right direction please.

MattMattMattUK

Hammers01 said:

Thanks for that. Do I Need to go through and company that deals with business debt if so can you point me in the right direction please.

Are you self employed, or did you take the loan as a Limied company, and if you did, did you pay yourself any of the money?

Hammers01

I took the loan as a limited company. Just wanted to know the next step.
Do you have a link maybe as there are lots of firms out there offering their services for companies that can't pay back bounce back loans.

MattMattMattUK

Hammers01 said:

I took the loan as a limited company. Just wanted to know the next step.
Do you have a link maybe as there are lots of firms out there offering their services for companies that can't pay back bounce back loans.

There will not be a company as such, do you have an accountant? 

If the company is insolvent then the company needs to be wound up according to the legal requirements, the accountant will need to dispose of any assets, recover any debts and use those funds to repay as much of possible of the company's debts. This would potentially include recovering any money you paid to any directors or shareholders since the loan was taken out. 

Your first step would be to speak to your accountant, though they should already be aware that your company is insolvent if they are doing their job properly. 

amcg100

I was able to suspend repayment of my bounceback loan and am currently paying interest only which is not much. This was with Santander who provided other options as well. If you contact your bank there may be something they can offer.