Sole trader bounce back loan implications

Discussion in 'Insolvency' started by frank759, Sep 21, 2021.

  1. UK Contractor Accountant

    UK Contractor Accountant Verified Business ✔️

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    Looks like strike off/dissolution of Ltd's also enables banks to claim under the Guarantee.

    I recall somebody bragging about this on the various Forums before he was shut down.
     
    Posted: Sep 22, 2021 By: UK Contractor Accountant Member since: Sep 18, 2013
    #21
  2. Mark T Jones

    Mark T Jones UKBF Legend

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    Or you could just claim to have been missold, like that idiot on here recently
     
    Posted: Sep 22, 2021 By: Mark T Jones Member since: Nov 4, 2015
    #22
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  3. Chris Callaghan

    Chris Callaghan Full Member

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    I think this case you are referring to will be the exception rather than the rule. I cannot speak for the other insolvency advisors on this thread, but daily I am speaking to company directors who's application to strike off or compulsory strike has been objected to and suspended by the BBL lender. Very recently I spoke with a director who's BBL was only £6k, but the bank has still objected to a strike off application.

    From my experience it now seems par for the course that a BBL lender will routinely object to either a voluntary or a compulsory strike off notice.
     
    Posted: Sep 22, 2021 By: Chris Callaghan Member since: Apr 10, 2018
    #23
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  4. WaveJumper

    WaveJumper UKBF Legend

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    Yes I remember that thread. Makes me wonder how much due diligence did the banks actually undertake on behalf of us the tax payers. if I could actually get through to them on the phone I might just ask.
     
    Posted: Sep 22, 2021 By: WaveJumper Member since: Aug 26, 2013
    #24
  5. Mark T Jones

    Mark T Jones UKBF Legend

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    The answer is very little - in their defence they were under a lot of pressure to get money out of the door
     
    Posted: Sep 22, 2021 By: Mark T Jones Member since: Nov 4, 2015
    #25
  6. UK Contractor Accountant

    UK Contractor Accountant Verified Business ✔️

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    I think the Bank did object in that case but then let it go to Strike Off when they were advised no assets left in the company and were asked to wind it up. They somehow managed to claim under the Guarantee.

    Maybe the Bank/Government relied on the new retrospective powers given to the Insolvency Service to investigate rogue Directors of dissolved companies.
     
    Posted: Sep 22, 2021 By: UK Contractor Accountant Member since: Sep 18, 2013
    #26
  7. Mark T Jones

    Mark T Jones UKBF Legend

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    The big unknown/variable here is the relationship between BBB and their lenders, plus the terms of the guarantee.

    It's already becoming clear that BBB is getting stricter on the guarantee, so putting pressure on banks to recover.

    In addition to giving IPs powers, BBB have a substantial contract to investigate and take action against abusers of the system, hence said idiot has dodged one bullet, only to jump into the path of a bigger one.
     
    Posted: Sep 22, 2021 By: Mark T Jones Member since: Nov 4, 2015
    #27
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  8. Chris Callaghan

    Chris Callaghan Full Member

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    I've kept in touch with a a few directors in this situation to see if the strike offs will eventually go through. So far no luck, and they have invited creditors (usually the BBL lender only) to wind up. Hopefully from 1st Oct when CIGA restrictions on winding up petitions are lifted, we will start to see whether or not BBL lenders will start issuing winding up petitions.

    I think the new retrospective powers granted to investigate directors of dissolved companies will be as a back up measure for any that are/were lucky enough to get a strike off across the line.
     
    Posted: Sep 22, 2021 By: Chris Callaghan Member since: Apr 10, 2018
    #28
  9. WaveJumper

    WaveJumper UKBF Legend

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    I can see this topic having its very own heading on the UKBF, going to be very interesting to see how this all unfolds for all concerned.
     
    Posted: Sep 22, 2021 By: WaveJumper Member since: Aug 26, 2013
    #29
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  10. Mark T Jones

    Mark T Jones UKBF Legend

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    The relationship between banks and Government is in itself an interesting one - including the bizarre decision of Lloyds to buy the lemon that was BOS on a whim one evening.

    At the start of this crisis Rishi Sunak launched a - frankly pathetic - initial CBILS scheme, demanding that the banks 'must step up because we helped them out' - which to me is pretty much identical to demanding that a recovering alcoholic goes drinking with you to repay your support during rehab.

    They launched BBL, general consensus was that it was a gift, easy money for banks - my comments then will tell you that I felt the opposite - that banks were dragged kicking & screaming to roll it out. Some lesser banks never got involved.

    Now we are seeing the reality of guarantees, and the true nature of the relationship.
     
    Posted: Sep 22, 2021 By: Mark T Jones Member since: Nov 4, 2015
    #30
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  11. Wantinglegaladvice

    Wantinglegaladvice UKBF Newcomer

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    Surely before all of the above steps discussed of forcing bankruptcy and IVAs, dialogue with the bank would help come to some sort of mutual arrangement such as manageable repayments or even a short holiday?

    Some have discussed a government amnesty of some sorts in terms of support scheme repayments being dropped but I’m not sure how likely this is
     
    Posted: Sep 22, 2021 By: Wantinglegaladvice Member since: Apr 2, 2018
    #31
  12. WaveJumper

    WaveJumper UKBF Legend

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    Yes, I think your correct here I can see relationships becoming quite strained as the government dig their heals in over the way the money was handed out (even though they were quite happy at the time) and now the dust, so as to speak has settled and government come under more press & public scrutiny banks are going to be forced into getting tough.

    As we mentioned before all fine, I guess if your genuine, but those who never had a going concern, misused the funds or were just blatant fraudulent claims for companies that never really existed may need to be looking over their shoulders
     
    Posted: Sep 22, 2021 By: WaveJumper Member since: Aug 26, 2013
    #32
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