Bounce back loans

Many company directors are struggling to repay bounce-back loans taken during the pandemic. What are the options and risks? ⚠️
The good news is that banks weren't allowed to ask for personal guarantees, so directors usually have no personal liability. Your personal assets are safe. However, directors cannot simply strike off a company with debt, as creditors, like banks, will likely object.
If your business is still viable, try negotiating with the bank to adjust repayment terms. You can also contact an insolvency practitioner for advice on company rescue options, such as a Creditors' Voluntary Arrangement (CVA).
If the business isn’t viable, consider Creditors' Voluntary Liquidation (CVL). This process, initiated by directors with the help of insolvency practitioners, ends the company’s trading life, realises assets, and distributes them to creditors. Any remaining debt is written off, provided directors act properly.
For tailored advice and a free initial call, contact us at Middlebrooks.
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