Bounce back loans what is happening stuck in limbo

[Dani741]

I wonder if anyone can shed any light on this

Over the past few months, I have been in contact with my, the Bounce Back Loan lenders. They have informed me that the Bounce Back Loan has now been paid off under the Government Guarantee recently, as the 12-month period has elapsed for collection from the bank.

All rules followed for money and what it was originally used for company stock etc. This company had been trading since 2014.

Yet objecting still?

I’ve written to companies house to inform them. But has anyone else experienced similar

 

[japancool]

It's not Companies House you need to contact about it, it's whoever is objecting.

 

[Newchodge]

I wonder if anyone can shed any light on this

Over the past few months, I have been in contact with my, the Bounce Back Loan lenders. They have informed me that the Bounce Back Loan has now been paid off under the Government Guarantee recently, as the 12-month period has elapsed for collection from the bank.

All rules followed for money and what it was originally used for company stock etc. This company had been trading since 2014.

Yet objecting still?

I’ve written to companies house to inform them. But has anyone else experienced similar

The Bank has no further objection as they have been apid off by the government. The government, however, can object.

 

[Mark T Jones]

The Bank has no further objection as they have been apid off by the government. The government, however, can object.

This. .

The bank has to prove that they have taken 'all reasonable steps' to recover in order to get paid.

It is now in the hands of British Business Bank or their agencies, who will decide whether/what action to take.

 

[Dani741]

This. .

The bank has to prove that they have taken 'all reasonable steps' to recover in order to get paid.

It is now in the hands of British Business Bank or their agencies, who will decide whether/what action to take.

Action

It's not Companies House you need to contact about it, it's whoever is objecting.

I’ve done that today through companies house to inform them.

 

[Dani741]

Is the Government not allowing any companies to be dissolved who taken an BBL.

Companies house operative said he has seen a massive pattern.

It’s just strange I followed all the steps and terms within the BBL company fell on hard times and I feel like I am being punished. Had company since 2014.
Many competitors ended up in same position our market was luxury and just crashed.

 

[WaveJumper]

The Bank has no further objection as they have been apid off by the government. The government, however, can object.

And me

 

[Newchodge]

Action

I’ve done that today through companies house to inform them.

Companies House will do nothing.

 

[Dani741]

And me

I found out it was D

Companies House will do nothing.

They said for me to email in they will pass my comments to the objectors.

To inform them bank paid off and to remove objection.

 

[Dani741]

This. .

The bank has to prove that they have taken 'all reasonable steps' to recover in order to get paid.

It is now in the hands of British Business Bank or their agencies, who will decide whether/what action to take.

Hence the above 12 months of chasing has now ended hence bank got money back.

 

[ChrisCallaghan]

To my knowledge, Department of Business & Trade will begin objecting when/if a BBL lender ceases, however I'm happy to be corrected if this has changed.

 

[Newchodge]

Hence the above 12 months of chasing has now ended hence bank got money back.

Do you mean you paid off the loan? I thought you said the governement had paid the bank. That does not mean the loan has vanished. It means, until the government dept is satisfied, you owe the money to them instead.

 

[Dani741]

Do you mean you paid off the loan? I thought you said the governement had paid the bank. That does not mean the loan has vanished. It means, until the government dept is satisfied, you owe the money to them instead.

No fraud was committed - therefore surely the guarantee should be the end of it?

The bank was repaid by guarantee after 12 months.

What is the end game?

Do I just leave it in limbo?

Is this normal at moment?

 

[ChrisCallaghan]

It's normal that dissolutions are not going through whilst there is an outstanding BBL. A member on this forum kindly updates us periodically, and I seem to recall her company has been in this limbo state since mid 2021.

What is the end game? I wrote a more lengthy post on this subject previously:

My guess is much like the rest in my industry I suspect....

There are not the resources in the Insolvency Service. The government does not wish to see companies with outstanding BBLs closed without there being an investigation, in each case, on how BBLs were spent and if the right amounts were borrowed. True, the Insolvency Service have now been granted the powers to investigate the actions of directors from dissolved companies, but if they start letting them be dissolved or start winding them up through the courts en masse, the Insolvency Service couldn't cope.

And so... indefinite objections to any and all strike off action, without taking action to wind. The hope is clearly that they are pushed to insolvency practitioners, so that we/they can handle the investigation work, and financial recovery where BBL abuse or fraud can be identified.

For those that have a Bounce Back Loan as the only debt in the company, plus a strong constitution, this is bearable. As I have mentioned on various threads, all a BBL lender will do is send letters, make phone calls, and eventually pass to a collections company who will repeat the same.

For those struggling with stress or mental health concerns, this can be intolerable. Especially if they have other creditors who will send bailiffs. @Spongebob , you and I know our rights and could easily fend off a bailiff visiting our home addresses trying to enforce against a non-trading asset-less Ltd. Others not so.

I personally still advise akin to @Spongebob 's guide to those who cannot fund a liquidation, as do the only company debt charity, Business DebtLine. However the reality is that many are now turning to a voluntary liquidation process due the stress and anxiety of having a company in this limbo status causes.

I hope the above summary from my experience helps with your current situation. If you'd like to talk through this in more detail, I'd be happy to offer you a consultation, naturally at no cost or obligation.

 

[Dani741]

It's normal that dissolutions are not going through whilst there is an outstanding BBL. A member on this forum kindly updates us periodically, and I seem to recall her company has been in this limbo state since mid 2021.

What is the end game? I wrote a more lengthy post on this subject previously:



I hope the above summary from my experience helps with your current situation. If you'd like to talk through this in more detail, I'd be happy to offer you a consultation, naturally at no cost or obligation.

Sounds like get on with your life and eventually it will close.

It seems everyone is in limbo state.

I can hold my head high knowing I used funds for intention of company stock, the economy crashed us.

Thanks for all your input guys and girls

 

[Spongebob]

It would appear that Companies House is under instructions from the government not to allow the informal dissolution of any company which has an outstanding Bounce Back Loan. The fact that the bank has been paid in full under its government guarantee would seem to be irrelevant.

My guess is that such companies will simply sit in limbo indefinitely. It is in nobody's interests to be the person who allows the dissolution of hundreds of thousands of companies with potentially recoverable debts to the government. Certainly an incoming government is not going to take such action. The optics would be terrible and the benefits negligible.

It is also my guess however, that no further action will ever be taken to recover such monies unless fraud has obviously taken place.

As is very often the case my advice is to forget all about it and get on with your life. "Closure" would be nice but is ultimately unnecessary.

 

[Bells25]

My bounce back loan with HSBC has just been sold onto a debt recovery company who is constantly calling and sending letters to my home everyday. My company has received an objection, and is a limited company. The recovery team are now stating I need to pay back the loan (with my own money) or face bailiffs at my door! As it’s a limited company I shouldn’t be liable surely?!

I cannot afford an insolvency company to help close the business either and I haven’t traded since 2021.

Any advice??

 

[ChrisCallaghan]

Firstly double check the BBL is in your limited company's name.

We're you a sole trader previously? When you took out the BBL, was it via a bank account that was in your limited company's name?

So long as you have taken out the BBL in your limited company's name, then you are not personally liable for it. Also, they cannot sell the debt, though they can instruct 3rd parties to act on their behalf, which I assume is what your BBL lender has done.

Lastly I'm 99.9% sure they can't send bailiffs out. I cannot find the document, but the collection advice on BBLs was published a few years ago, and I'm sure it stipulated that they couldn't carry out any form of doorstop collection activities.

 

[Bells25]

Firstly double check the BBL is in your limited company's name.

We're you a sole trader previously? When you took out the BBL, was it via a bank account that was in your limited company's name?

So long as you have taken out the BBL in your limited company's name, then you are not personally liable for it. Also, they cannot sell the debt, though they can instruct 3rd parties to act on their behalf, which I assume is what your BBL lender has done.

Lastly I'm 99.9% sure they can't send bailiffs out. I cannot find the document, but the collection advice on BBLs was published a few years ago, and I'm sure it stipulated that they couldn't carry out any form of doorstop collection activities.

Thank you Chris for your advice.

Definitely was taken out in my Ltd company name, I have always been a limited company from the start too.

That’s reassuring I think the recovery team are being extremely pushy at the moment with the phone calls and letters, I will explain all of this to them on the phone so they can give me some clarity on what I can do next.

 

[Lisa Thomas]

Firstly double check the BBL is in your limited company's name.

We're you a sole trader previously? When you took out the BBL, was it via a bank account that was in your limited company's name?

So long as you have taken out the BBL in your limited company's name, then you are not personally liable for it. Also, they cannot sell the debt, though they can instruct 3rd parties to act on their behalf, which I assume is what your BBL lender has done.

Lastly I'm 99.9% sure they can't send bailiffs out. I cannot find the document, but the collection advice on BBLs was published a few years ago, and I'm sure it stipulated that they couldn't carry out any form of doorstop collection activities.

Page 45/46 here stipulates the recovery policy to the banks. I don't believe it's been updated/amended since:

https://www.nao.org.uk/wp-content/uploads/2021/12/The-Bounce-Back-Loan-Scheme-an-update.pdf

 

[ChrisCallaghan]

Page 45/46 here stipulates the recovery policy to the banks. I don't believe it's been updated/amended since:

https://www.nao.org.uk/wp-content/uploads/2021/12/The-Bounce-Back-Loan-Scheme-an-update.pdf

Thanks Lisa, I've been meaning to look this up again!

 

[Lisa Thomas]

You're welcome. Love a bit of light bed time reading!