When a company enters liquidation, the conduct of the director (s) will be reviewed. If the Insolvency Practitioner believes it to be necessary, this could lead to an investigation by the Insolvency Service.
We are seeing more and more clients who have or are being investigated by the Insolvency Service for misuse of the COVID-19 Financial support schemes, particularly the Bounce Back Loan Scheme. The industry-wide prediction is that the Insolvency Service is only going to ramp up their efforts to crack down on Bounce Back Loan Fraud and misuse especially as in September 2023 they obtained their first compensation order against Marian Ghimpu, 58, from Croydon who was disqualified as a director for 13 years and ordered to repay over £50,000 to the public purse.
When Bounce Back Loan Funds have been used by a director personally or cannot be accounted for it will be investigated and will potentially have serious personal liability implications for the director.
How can Personal Guarantees UK help?
If you know you have a bounce-back loan that may cause an issue and your company is either in liquidation or this is a possibility, then get in touch with us without delay. In our free initial consultation, we will be able to give you some advice and if it looks like your BBL is going to cause you a problem when it comes to liquidation then we can assist. Our expertise lies in negotiating commercially sensible settlements that reflect your individual financial circumstances. Early engagement on your behalf is key to settling these matters. To get your free initial consultation please get in touch on 0333 8801791 / firstname.lastname@example.org or through the contact form on our website.