What Happens If You Took a Bounce Back Loan and Don’t Repay? Risks and Consequences in the Upcoming Crackdown

Once the Public Authorities (Fraud, Error and Recovery) Bill Gets Royal Assent and becomes law, the powers that be will be in a much easier position to come after you for any type of Bounce Back Loan related wrongdoing.

There are many ways they can do just that, but one way that has been trialled by Barclays for example was for them to simply head to the High Court and explain to a judge how you blagged the BBL and persuade the Judge to wind up your Company.

If you find yourself in that position, you will be given the opportunity to argue your case in person to the Judge and Bank’s legal team, but if the Judge doesn’t believe your explanation he or she will wind up your company and that will then see Insolvency Practitioners taking charge of the Company and fully investigating its finances. I have sat watching such cases, and they rarely end well.

Once they work out what you did wrong, they can, if they think you have assets or funds stashed away, including personal funds and/or assets, offer to sell the case to Litigation Funders.

Those Litigation Funders put up the finance to come after you personally in exchange for a modest fee given to the Insolvency Practitioners, in exchange for percentage of the funds they get from you. That process can take some time, but once they have their teeth into you, they will do whatever it takes to get at your personal assets, even making you personally bankrupt.

I kept track of every single case that Barclays instigated in and around 2022 which resulted in funds eventually being recovered, and below is the outcome of their winding up orders and what the Litigation Funders managed to recover personally from Directors, for reference the Litigation Funder in these cases was Manolete Partners.

Be aware though, that the Public Authorities (Fraud, Error and Recovery) Bill gives the powers that be all manner of new recovery options, so it will be much easier for them to come after you and your personal funds and assets.

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