The Disqualification Files

This section of the website looks in detail at everyone given a Director Ban or a Bankruptcy Restrictions Order for Bounce Back Loan related wrongdoing, along with full details of what each person did, and occasionally other wrongdoing that resulted in a defaulted BBL.

The Insolvency Service recently said: “We expect to see a reduction in Covid Scheme related outcomes during 25/26 as we work through the pool of Bounce Back Loan cases”.

They have also warned that a BBL must be repaid and if the money your company borrowed is not repaid; your company may be investigated by the Insolvency Service, even if it has been dissolved.

If we find there was misconduct in the use of the BBL, action may be taken against you and your company.

Types of misconduct can include, providing false information on loan application, the loan being used for personal benefit and/or dissolving your company to avoid repaying the loan

As a result of the misconduct your company could be wound up by the Court, you could be disqualified as a director, and a Court Order may be made for you to pay compensation.

Insolvency Service Hands Out Another 6 Year Disqualification to Company Director For Using Most of a £42k Barclays Bounce Back Loan For Personal Benefit

October 5, 2021

It is now almost daily that at least one Company Director gets slapped with a disqualification due to supposed wrongdoing when there is a Bounce Back Loan involved in the liquidation of a company, and today I will give you an insight into one such case which also involves payments from the Job Retention Scheme. […]

5 Year BRO for Indian Takeaway Owner Who Transferred a £50k BBL to a Family Member for No Apparent Reason – 8 Year BRO For Man Who Secured a £50K BBL for a Partnership That Had Ceased Treading Before the BBL Scheme Launched – Co-Directors Hit with a 7 Year Disqualification

October 2, 2021

A mix of Ltd Company Directors, Sole Traders and even those who do not own a business but who obtained a Bounce Back Loan are winding up their businesses or declaring bankruptcy and are being hit with disqualifications or BRO’s if the Insolvency Service determines skulduggery regarding […]

7 Year Disqualification for failing to Maintain and/or Preserve Accounting Records Making it Impossible For the Insolvency Service to Verify if a Grant and Lloyds Bank BBL Were Used for Benefit of Company or if Turnover Was High Enough to Warrant a £20k BBL

September 30, 2021

As furlough comes to an end, it is sad to see the Government update their website today regarding their “Guide to Bankruptcy”, an indication of how things have progressed for many people over the last 18 months or so. Another Company Director faces a 7 year ban, this time for failing to keep accounting records to help the Insolvency Service determine where a Government Grant and Bounce Back Loan went. […]

Insolvency Service Unable to Determine if a Starling Bank BBL Was Obtained Legitimately and Why Company Was Not Registered for VAT Given Director Applied for a £50K BBL Requiring a Minimum £200k Turnover – Upshot 7 Year Disqualification

September 29, 2021

Due to not keeping/preserving adequate accounting records has resulted in a Company Director being disqualified for 7 years, mainly due to the fact the Insolvency Service could not work out if a Starling Bank BBL was used for the benefit of the company, and they question why the company was not registered for VAT when a £50k BBL was obtained, with the turnover for that value loan having to be at least £200k. […]

Company Director Used a Lloyd’s Bank Bounce Back Loan to “Sustain Daily Living Costs” and Insolvency Service Disqualify Him for 6 Years Upon Liquidation of the Company

September 29, 2021

As we rattle through the months, I am seeing more and more Company Directors being hit with long disqualifications when winding up their companies when a Bounce Back Loan is involved when the Insolvency Service discover the funds from that loan were used for personal benefit and not the benefit of the business, here is another one, this time regarding a Lloyds Bank BBL. […]