Reply to: Bounce Back Loan Update - officially cancelled

[zeus tiktak]

Had numerous more messages so i will reply for everyones benefit:

1. were you an IT contractor?
the only person in the business was myself, however i subcontracted a lot of the work out. not sure if that fits the definition of an IT Contractor.

2. Did you build you app using cash or crypto?
the cost was much more than the 50k bbl. we paid in cash and crypto

3. how long did it take to write off the BBL
nearly 24months from ds01 application.

4. why didnt you pay off thre BBL if you could personally afford it?
we tried to pay santander using personal funds (around 20k offered) but we wanted it in writing that it would be acceptable. They wouldnt provided anything in writing so did not pursue this any further as was business debt.

[Lance]

How can someone get a BBL of £50k and then have it wiped off and not have to re pay it?? That is just wrong surely....

The limited part of a company name specifies that it has limited liability. The shareholders of a limited liability company cannot, except in exceptional circumstances, be liable for the debts of the company.

It's why loans, leases and mortgages cost more for a company than an individual.

[northernladuk]

How can someone get a BBL of £50k and then have it wiped off and not have to re pay it?? That is just wrong surely....

You are probably looking at it from a contractor perspective. He isn't a contractor, it's explained in his posts a bit further down.

[d000hg]

How can someone get a BBL of £50k and then have it wiped off and not have to re pay it?? That is just wrong surely....

Read the thread and find out. If a company goes bust, debts don't get repaid.

[Cookielove]

How can someone get a BBL of £50k and then have it wiped off and not have to re pay it?? That is just wrong surely....

[d000hg]

SO you clearly aren't running the same business model nearly everyone here is.

Surely that was apparent from the first post? The main question is why they're here in the first place when not a contractor... it is considered polite to state your situation is atypical when posting though.


TLDR: you took a BBL, it wasn't enough to keep the company going so the company collapsed with an outstanding loan. You were investigated to check it wasn't fraudulent and found to have done nothing wrong.

[zeus tiktak]

Just to clarify we did not use a company related to us to build the application, this suggestion is neither true or helpful. It was a company in malaysia that provided a quote which we got through fiver.com.

Also we offered to pay a portion of the BBL using personal funds, but the bank would not confirm we could do this in writing, so we couldnt even pay some of it back.

Hindsight is a great thing, but at the time trying to building this solution with crypto payments seemed like a good idea. I am sure we were not the only ones who got burned with crypto, but it was this that made us effectively bankrupt.

[northernladuk]

I had a feeling he paid a connected company to develop a website for 50k and then went insolvent as a way to burn the cash.

I was sort of close. Anything crypto and you know it’s a scam

Unlikely he was gonna get paid anything even if covid hadn't hit.

[NowPermOutsideUK]

I had a feeling he paid a connected company to develop a website for 50k and then went insolvent as a way to burn the cash.

I was sort of close. Anything crypto and you know it’s a scam

[northernladuk]

got a few more dm's so i'll answer them here.

No, you should have answered them in DM. They were the only people even slightly interested.

q: what kind of business did you run?
A: i offered remote support to companies. the cost was for developing an application where users could pay via crypto. after paying devs, this never got completed. The total cost of the app was 80k so BBL was only used for a portion of it. Devs were based in malayssia, and i insisted on proper contract and invoices for tax purposes

I thought the online drug trade blossomed during covid. Surprising it didn't work out

q: how did you argue you were mis sold the bounce back loan/
A: this was one of 20 bullet points i listed, so was a small point. i argued the government solicited people to take on the loan by constantly advertising on tv, radio and newspaper. they effectively co-erced people indirectly. they did not respond to this bullet point but this is what i put.

Yeah definitely DM them back. Someone that didn't bother reading this thread. Unfortuantely we did.

Hopefully whoever did ask can see how advertising on radio/newspapers etc is clearly coercing you

q: did you try paying for insolvency practitioner
a: no, as the ltd had no funds. after my ds01 letter to santander , they actually blocked my access to the current account.

Love to know who asked this. Why would they think you did when you ran out of money to the point you had to pocket a free loan and then run off with the money.

But if I asked a question in any of the responses above don't worry about replying.

[zeus tiktak]

got a few more dm's so i'll answer them here.

q: what kind of business did you run?
A: i offered remote support to companies. the cost was for developing an application where users could pay via crypto. after paying devs, this never got completed. The total cost of the app was 80k so BBL was only used for a portion of it. Devs were based in malayssia, and i insisted on proper contract and invoices for tax purposes

q: how did you argue you were mis sold the bounce back loan/
A: this was one of 20 bullet points i listed, so was a small point. i argued the government solicited people to take on the loan by constantly advertising on tv, radio and newspaper. they effectively co-erced people indirectly. they did not respond to this bullet point but this is what i put.

q: did you try paying for insolvency practitioner
a: no, as the ltd had no funds. after my ds01 letter to santander , they actually blocked my access to the current account.


i took up Yoga during covid years to relax btw, so if anyone is really stressed, that is highly recommended.

[northernladuk]

Is it too much to ask for a breakdown of those costs? I find it astonishing that someone can burn 50K with no tangible assets at the end - If the official receiver scrutininses this I wonder as well what will come up

I am not even going to suggest that 50K for a website subcontracted to someone that you know is a possibility

The problem is it appears he's not a 'standard' contractor and has given little information on what he does. You are comparing apples and pears by trying to compare it to your situation. I think the whole thread is crock tbh so I wouldnt bother digging any further if I were you but if he's actually more akin to a small business creating something to pass on the clients then it could be possible to do this.
That said if he was giving real and useful advice he should have explained that at the beginning so we could work out how his advice would apply to us. If he is running a small service provider model then everything he's said becomes a lot less relevant.

But either way, as I say, the whole thread is a joke and it's gonna get worse if you try get under the hood so I'd just leave him be if I were you. It's not going to go anywhere however many questions you ask.

[eek]

Is it too much to ask for a breakdown of those costs? I find it astonishing that someone can burn 50K with no tangible assets at the end - If the official receiver scrutininses this I wonder as well what will come up

I am not even going to suggest that 50K for a website subcontracted to someone that you know is a possibility

Very - easy a web application was created that ended up not having a decent customer / user base.

[NowPermOutsideUK]

the 50k went on costs (IT suppliers, web consultants and business architects who were subcontracted to do work) . No one could foresee covid lockdown would continue for another 12 months, so company ran out of money.

Is it too much to ask for a breakdown of those costs? I find it astonishing that someone can burn 50K with no tangible assets at the end - If the official receiver scrutininses this I wonder as well what will come up

I am not even going to suggest that 50K for a website subcontracted to someone that you know is a possibility

[northernladuk]

the 50k went on costs (IT suppliers, web consultants and business architects who were subcontracted to do work) . No one could foresee covid lockdown would continue for another 12 months, so company ran out of money.

SO you clearly aren't running the same business model nearly everyone here is.