Can I put my company into an insolvency process whilst I have an outstanding Bounce Back Loan?
A common misconception has arisen regarding the possibility of liquidating a company that has availed itself of a Bounce Back Loan. Some Directors fear that having such a loan might hinder the process. However, we are here to clarify that this is indeed a misconception.
Directors should be aware that it is entirely possible to liquidate a company that has a Bounce Back Loan. The process typically involves a Creditors Voluntary Liquidation (CVL), a formal insolvency procedure that allows Directors to close down a company while addressing outstanding debts.
The same principle stands with putting a company into Administration, a formal insolvency procedure which most of the time deals with selling of part or the whole business.
