What happens if I cannot pay my BBL

What happens if I cannot pay my BBL

If you think cannot pay your Bounce Back Loan you should call us immediately. You probably need to face the possibility that your company is insolvent. It is important to get advice so we suggest you take advantage of our free initial consultation as soon as possible.

Not being able to see a way to meet your obligations in relation to your BBL repayments is a situation that no business want's to be in. What it means and what to do about it will be uppermost in your mind. 


Am I personally liable for the BBL if the Company is unable to pay it?

The commonly held view is that because these loans are guaranteed by the government there will be no personal liability. This is correct in essence but there are some issues that directors need to be aware of which may make things a little more complicated.

If the BBL was incorrectly obtained, you may have breached the terms of the loan in the first place. When you applied for a BBL, you confirmed that you were eligible for the loan. It is not currently clear what action will be taken by the banks if this has happened but we have already seen a director being disqualified in these circumstances. Therefore we will suggest you give us a call. 

 The rules that may inadvertently have been broken are:

If it can be proved that any of the conditions were not met, then it is possible that the loan could be deemed to have been illegally obtained.

You should be aware that in an insolvency process, the Insolvency Practitioner has a duty to review the director’s conduct. We have been informed by Government that we should review how the funds were used in relation to the terms of the loan.

Common problems will be:

Hopefully the above will not be an issue for you, but we believe it is better for you to be informed rather than head into any insolvency process without understanding where you stand.

Contact us if anything you read on this page has made you concerned you may be heading for a problem paying your Bounce Back Loan commitments. We are happy to discuss this with you further and offer a free 20 minute initial call to talk through your problems.


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Find out more about our insolvency, liquidation or recovery service.  Learn how we can support you with clear, straightforward and empathetic guidance and support.

Call us on 0116 2967507 (Leicester), 01926 969000 (Warwick), 02476 0179639 (Coventry) or 01604 263179 (Northampton), or email us on info@smartbusinessrecovery.co.uk