The Bounce Back Loan Scheme (BBLS) offered emergency funding for companies and sole traders at the peak of the coronavirus pandemic, and the Bounceback loan was instrumental in keeping many Ltd companies and the sole trader’ businesses afloat. A huge number of sole traders still experiencing financial distress, however, what happens if you.
Cannot afford your Bounce Back Loan repayments?
Are you personally liable for the outstanding amount?
Affecting sole traders who cannot repay their Bounce Back Loan?
Your bounce-back lender is likely to demand full repayment of the loan. As you’re a sole trader without the protection of incorporation (Limited company liability act as a separate entity in companies house) your business debts are your debts, and you are likely to be pursued through the courts on a personal level which means debt collection companies are likely to be involved in collection of bounce back loans repayment. This could mean your lender may petition for your bankruptcy if you cannot afford to repay despite issuing you debt demand letters. The rules of the Bounce Back Loan Scheme do provide protection for your home and tangible assets you hold i.e. cars, jewelry, etc.
How Do Bounce Back Loan Repayments Work?
Consider A Formal And Informal Debt Solution
Informal Debt Solution -Debt Management Plans
A debt management plan in England and Wales can be effective if you are struggling to pay a sole trader to bounce back a loan. It aims to reduce your monthly repayment to your actual affordability to ensure your finances are within your control and it also protects that your priority bill payments are paid first.
Get Advice & Help Today
Please call on 0203 318 0990 for free and independent consultation for sole trader bounce back loan and difficulty in repaying it. Our office may arrange a free personal appointment (subject to availability) in our West Drayton (Uxbridge) office.