Contact David Kirk by clicking on his name to email him a question or call 01392 474303

01392 474303

What happens to my Bounce Back Loan on Liquidation?

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.


A Coronavirus Business Interruption Loan or CBIL’s is a different type of loan and the directors will have personally guaranteed 20% of it.

Author: David Kirk
Everything you need can be done online.
We cover all of England and Wales.

Request a callback

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

David Kirk - Kirks Insolvency Call Back

David Kirk

Licensed Insolvency Practitioner