Insolvency Service places further bankruptcy restrictions for BBL abuse

In each of the separate cases, the five individuals abused the bounce back loan scheme were either wrongfully obtained through overstating their business turnover, on behalf of a company that had already ceased trading prior to the pandemic or were simply misused for personal use rather than legitimate business spending. 

Their bankruptcy restrictions mean none are able to borrow more than £500 without disclosing their bankrupt status. They’re also unable to act as a company director without permission from the court. 

Kevin Read, an official receiver at the Insolvency Service, said: “In all of these cases it was obvious, or it should have been obvious, that they either misused the Bounce Back Loan for personal benefit, took a larger loan than they were eligible for, or weren’t eligible for a Bounce Back Loan at all.

“This is taxpayers’ money they have abused and we will not hesitate to impose bankruptcy restrictions in these circumstances.”