Can Directors Close a Business with an Outstanding Bounce Back Loan
Can I Close a Company with A Bounce Back Loan. Written by John A Waller. Director. August 1st,2022.
When operating a limited company. Any business debts, including bounce-back loans that the company cannot pay in full or partly after calculating assets and liabilities, are cancelled if the company is insolvent.
Limited companies protect directors and shareholders due to their “limited liability structure.”
So, if you’re insolvent – meaning you cannot pay debts when due – you should contact an insolvency practitioner such as ourselves to discuss your options in the UK. The law requires the liquidation of a limited company to be carried out by a licensed insolvency practitioner, who will communicate with its creditors in the formal closure process.
Risks to directors closing a company with a bounce-ba