Originally posted by mookiemoo
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Bounceback loans - Free year ending soon
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Originally posted by Paralytic View Post
I suspect some think that because the BBLs are government backed, they'll be easier to walk away from compared to traditional non-secured bank loans. I can assure people this is not the case - banks will have to show they have followed their debt-recovery processes, and failed to recover the loans, before they can reclaim any loss from the government.Comment
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Originally posted by cwah View Post
That's expected they'll follow the process. However there isn't any personal liability, so unless there is fraud, the director isn't liable and can just walk away.Comment
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Originally posted by jamesbrown View Post
That really depends on whether they've upheld the terms of the loan and their fiduciary duties as a director or, for example, they've created a situation whereby illegal preference payments were made (e.g., to the director). Anyone who thinks they can just "walk away" from a debt is deluded and this applies to walking away from an insolvent business in general. An administrator or liquidator will always look at the reasons for insolvency and will seek to prosecute any misfeasance.
Of course if you made illegal payment the director will be liable because it is... illegal.
But pay yourself salary and pension should be all good because it's all legal.Comment
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Originally posted by cwah View Post
Yes but that's expected for any company that you fold... especially if you have debt.
Of course if you made illegal payment the director will be liable because it is... illegal.
But pay yourself salary and pension should be all good because it's all legal.Comment
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Originally posted by jamesbrown View Post
Your "oh, you can just walk away" vibe is pish. The only conditionality you offered was "fraud", which is a misunderstanding. It may or may not be fine, depending on what you did. I bet you don't even know what a preference payment is, do you?
Although I still say if paying salary + pension as it was done the previous years should be fine because it wouldn't be preference payment.Comment
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Originally posted by cwah View Post
Yes but that's expected for any company that you fold... especially if you have debt.
Of course if you made illegal payment the director will be liable because it is... illegal.
But pay yourself salary and pension should be all good because it's all legal.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by cwah View Post
No I didn't. I just read it through and it makes sense not to pay some relative instead of the creditor.
Although I still say if paying salary + pension as it was done the previous years should be fine because it wouldn't be preference payment.Comment
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https://amp.ft.com/content/8d7851c3-...3-235aeb1e5674
Ministers will crack down on company directors seeking to dissolve their businesses to avoid repaying creditors in a bid to prevent the loophole being exploited to write off state-backed emergency Covid-19 loans.
The Insolvency Service will be given beefed up powers to investigate and sanction directors found to have abused the process. The measures, which are part of bill put before parliament on Wednesday, will also give the government agency retrospective powers.Comment
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Originally posted by cwah View Post
That's expected they'll follow the process. However there isn't any personal liability, so unless there is fraud, the director isn't liable and can just walk away.I'm alright JackComment
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