Bounce back loan

[Pradip]

Im a sole trader. Had a bounce back loan. I had to shut down my business in 2022. Im still paying for the loan even though I had shut down and made a loss. I can't carry on paying. How can I have it written off.

 

[japancool]

And what are you doing now?

 

[Mark T Jones]

I'm afraid short of bankruptcy you are on the hook

 

[Pradip]

And what are you doing now?

Nothing looking may do another start up

 

[WaveJumper]

Why did the last start up fail after an injection of funds

 

[Annoying Donkey]

If it's below £30,000 and unsecured, a debt relief order... I believe the £90 fee has been removed...
Contact CAB or other debt charity...

 

[Greg PW Shearman]

As a sole trader you would be personally liable.

Speak to Citizens advice , if you are looking to secure funds for new business trying to cancel the debt will cause problems moving forward.

 

[Pradip]

Why did the last start up fail after an injection of funds

Was trading for 17 years. And covid just sent me under basically lack of customers. I had a retail store

 

[Lisa Thomas]

The only way to write off some or all of this debt is to explore personal insolvency options like Bankruptcy, an IVA or a Debt Management Plan.

Best to speak to Citizens Advice or Stepchange in the first instance:

StepChange Debt Charity. Free Expert Debt Help & Advice

 

[KeithGreen]

I would suggest you do everything you can to continue paying the loan. Get a job, and if necessary renegotiate terms with the bank (although it seems unlikely you'll get better terms than a BBL). On that point I believe the original BBL terms were repayable over 6 years but I think you can extend for 10 years by agreement with your bank.

There are ways of writing off debts but they will almost certainly ruin your credit status for 6 years or more. Even a debt management plan (DMP) will affect your credit status. This will affect any new business you want to start, and if you go for employment may even curtail opportunities in many jobs especially banking, insurance and so on.

Do take advice from a debt adviser, preferably CAP, StepChange or another charity. But try to avoid anything like a DRO, bankruptcy, IVAs if at all possible.

 

[Pradip]

Thank you so much. I will do what you suggest

 

[Byzantium]

£30k and you must have been paying it back for at least a year, even if you took all the holidays etc., means you owe a maximum of about £27k and you might have up to 6 more years to pay so you are only really looking at £86 a week.

OK, not "nothing" but not much more than a few beers and a curry is it ?

Get a job, pay it back and keep your credit record.