Bounce Back Loan Default

MattyW1121

So, I have a bounce back loan, it was taken out as a sole trader. I'm currently defaulting on all my credit cards and loans since i just can no longer afford them atall, I've had my first default show on Experian for Vanquis. I received a letter today from Moorcroft to say they are acting as collection agent for the bank that has my bounce back loan. I'm just wondering how I'll know when the bounce back loan has defaulted, since unlike my credit cards (eg Vanquis) my bounce back loan has never shown up on my credit report (presumably because bounce back loans didn't require credit checks to be taken out). So, my question is, how will I know when the bounce back loan has defaulted? Presumably the default won't show on my credit report, so how will I know for sure when it's been defaulted?

Brie

Isn't a bounce back loan down to your business and not you personally so that's why it wouldn't show on your credit report?  Have you shut down your business as well?  

QrizB

Brie said:

Isn't a bounce back loan down to your business and not you personally so that's why it wouldn't show on your credit report?  Have you shut down your business as well?  

OP is a sole trader so they are the business.

Grumpy_chap

MattyW1121 said:

So, I have a bounce back loan, it was taken out as a sole trader. I'm currently defaulting on all my credit cards and loans since i just can no longer afford them atall, I've had my first default show on Experian for Vanquis. I received a letter today from Moorcroft to say they are acting as collection agent for the bank that has my bounce back loan. I'm just wondering how I'll know when the bounce back loan has defaulted, since unlike my credit cards (eg Vanquis) my bounce back loan has never shown up on my credit report (presumably because bounce back loans didn't require credit checks to be taken out). So, my question is, how will I know when the bounce back loan has defaulted? Presumably the default won't show on my credit report, so how will I know for sure when it's been defaulted?

It seems to be that the banks have to pursue all recovery options before the BBLS is written off by the Government underwriting.

There have also been comments that evidence can be sought as to where the BBLS funds went and that they were used within the constraints / intents of the BBLS scheme.

Grumpy_chap

To add to my previous post, the OP may benefit from visiting the DfW (debt-free wanabee) areas of these forums and preparing their SoA (statement of affairs) to obtain comment on their overall budget and opportunities to improve matters.

Is the OP still continuing with their sole-trader business, or does the OP now have an alternative form of employment / income?

Brie

QrizB said:

Brie said:

Isn't a bounce back loan down to your business and not you personally so that's why it wouldn't show on your credit report?  Have you shut down your business as well?  

OP is a sole trader so they are the business.

yes this is the bit that gets me confused.  I knew of someone who ran a business registered at company's house and was the only employee.  They needed to get the business closed before they could get the loan written off.  Their loan didn't show on their credit report as it was in the name of the business.  

MyRealNameToo

Brie said:

QrizB said:

Brie said:

Isn't a bounce back loan down to your business and not you personally so that's why it wouldn't show on your credit report?  Have you shut down your business as well?  

OP is a sole trader so they are the business.

yes this is the bit that gets me confused.  I knew of someone who ran a business registered at company's house and was the only employee.  They needed to get the business closed before they could get the loan written off.  Their loan didn't show on their credit report as it was in the name of the business.  

They therefore ran a company which is a legal entity in its own right, the loan would have been to the company. The OP is a sole trader therefore there the only legal entity is themselves. 

A business can be a sole trader, a partnership, limited liability partnership, incorporated company etc

MeteredOut

Brie said:

QrizB said:

Brie said:

Isn't a bounce back loan down to your business and not you personally so that's why it wouldn't show on your credit report?  Have you shut down your business as well?  

OP is a sole trader so they are the business.

yes this is the bit that gets me confused.  I knew of someone who ran a business registered at company's house and was the only employee.  They needed to get the business closed before they could get the loan written off.  Their loan didn't show on their credit report as it was in the name of the business.  

A business registered at companies house is a Ltd company. So, in that case, the loan was not with the director/employee, but with that legal entity. It looks like the OP was a sole trader, so the loan was with them as they are the same legal entity as their business.

MyRealNameToo

MeteredOut said:

Brie said:

QrizB said:

Brie said:

Isn't a bounce back loan down to your business and not you personally so that's why it wouldn't show on your credit report?  Have you shut down your business as well?  

OP is a sole trader so they are the business.

yes this is the bit that gets me confused.  I knew of someone who ran a business registered at company's house and was the only employee.  They needed to get the business closed before they could get the loan written off.  Their loan didn't show on their credit report as it was in the name of the business.  

A business registered at companies house is a Ltd company. 

<pedant mode> or PLC or unlimited company or LLP but in all cases an incorporated entity </pedant mode>

MeteredOut

MyRealNameToo said:

MeteredOut said:

Brie said:

QrizB said:

Brie said:

Isn't a bounce back loan down to your business and not you personally so that's why it wouldn't show on your credit report?  Have you shut down your business as well?  

OP is a sole trader so they are the business.

yes this is the bit that gets me confused.  I knew of someone who ran a business registered at company's house and was the only employee.  They needed to get the business closed before they could get the loan written off.  Their loan didn't show on their credit report as it was in the name of the business.  

A business registered at companies house is a Ltd company. 

<pedant mode> or PLC or unlimited company or LLP but in all cases an incorporated entity </pedant mode>

Agreed, but this was in reference to a single employee company, which is almost certainly going to be a Ltd company.

Now the pedant in you is wanting to tell me they were most likely a director and not an employee and that directors of single people companies are not necessarily employees of those companies