Email David Kirk direct by clicking on his name.

Close this search box.

What happens to my Bounce Back Loan on Liquidation?

Last updated: September 29, 2021

The Quick Answer

A Bounce Back Loan will rank with all other unsecured creditors and normally be written off on liquidation. Unsecured creditors including suppliers, Business Rates, PAYE and VAT also normally get written off on liquidation.

The Bounce Back Loan is classed as an unsecured creditor and should not have been personally guaranteed.


A Bounce Back Loan cannot be personally guaranteed by the directors. If a company goes into Liquidation or Administration, the bank’s remedy for the funds is firstly a claim on the company assets and then any shortfall can be claimed from the UK Government. The bank cannot ask the shareholders or directors to repay the loan.

If you are a sole trader or partnership (but not an LLP) then you will be liable for the loan if your business closes.


If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

More questions in this section

Author: David Kirk - ACA FABRP
Everything you need can be done online.
No need to meet anyone in person.
We cover all of England and Wales.
Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott (14th December 2021)



Sign up to our newsletter

Request a callback

Simply fill out the short form below and I will get back to you.

David Kirk Portrait

David Kirk

Licensed Insolvency Practitioner