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Closing Limited company down with a bounce back loan?

Bike369
Posts: 33 Forumite


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
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
0
Comments
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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.1 -
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.0 -
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
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 £7k0
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