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Closing Limited company down with a bounce back loan?

Hello

Is it possible to close a limited company down with an outstanding bounce back loan of approx. £7000. If so are there any repercussions on the director personally? 

Many thanks 

Comments

  • Tucosalamanca
    Tucosalamanca Posts: 853 Forumite
    500 Posts Third Anniversary Photogenic Name Dropper
    Yes and possibly. There is no personal director responsibility, the state is ultimately underwriting the loan.

    However, the bank / liquidator might look into how the funds were spent.
    If they deem that you acted irresponsibly (or fraudulently, not spending the money as intended), it could complicate matters.

    Google is your friend.
  • Mr.Generous
    Mr.Generous Posts: 3,802 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 15 January at 9:34PM
    I know someone who used a bounceback loan to pay redundancy and wind up the business. Had to repay it plus fine.
    Mr Generous - Landlord for more than 10 years. Generous? - Possibly but sarcastic more likely.
  • Grumpy_chap
    Grumpy_chap Posts: 17,018 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Bike369 said:
    Hello

    Is it possible to close a limited company down with an outstanding bounce back loan of approx. £7000. If so are there any repercussions on the director personally? 

    Many thanks 
    It will depend on how the BBLS funds were expended and what other funds might have been in the business but drawn by the Owner / Director.
    Having the debt outstanding will prevent the regular voluntary strike off from the register unless the proposal is bankrupt liquidation in which case the liquidators fees will probably come to more than £7k
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