Bounce Back Loan - ltd company, ceasing to trade - dissolving (not insolvent)

TobyBay

Hi there, 

I am a Director of a Limited Company that has stopped trading.  I have paid all debts apart from the Bounce Back Loan.  Do I need to register as insolvent for this debt to be written off or is it enough to dissolve a company?

Any help would be appreciated as finding the dealings with RBS very stressful on this matter.

Thanks

Wonka_2

So the key question - is the company insolvent when you take into consideration the Bounce Back loan ? Or could it be repaid but you'd just prefer not to ?

And depending on life stage/future plans how much impact would insolvency have ?

Hoenir

Was the BBL used for the purpose it was intended i.e. provide working capital?  

What issues have you encountered with RBS?  

MeteredOut

If you've paid any dividends from the BBL funds (rather than from retained profits from previous years), expect a challenge to any voluntary liquidation.

MEM62

You state that the company is not insolvent, yet you cannot pay back the bounce back loan.  Both cannot be true.  If insolvent and you have shown preferential treatment to some creditors you may have some tough questions to answer.      

Grumpy_chap

TobyBay said:

Hi there, 

I am a Director of a Limited Company that has stopped trading.  I have paid all debts apart from the Bounce Back Loan.  Do I need to register as insolvent for this debt to be written off or is it enough to dissolve a company?

Any help would be appreciated as finding the dealings with RBS very stressful on this matter.

Thanks

You can't register as insolvent as the company is not insolvent, as per the thread title:
"Bounce Back Loan - ltd company, ceasing to trade - dissolving (not insolvent)"

If the company is insolvent the Directors may be challenged for the preferential repayment of all other debts ahead of the BBLS.

If the company has paid dividends, the Directors may be challenged on those decisions.

The correct, and legal, route here is to repay the BBLS and then dissolve the company in the conventional manner.