Bounce-Back Loan Disputes
Has COVID-era debt become a personal risk?
If your business is struggling to repay a COVID bounce-back loan – or you’re being personally pursued by a bank, the Insolvency Service, or liquidators – you're not alone. Complex Law provides straightforward, confidential advice and clear strategies to protect your personal and professional future.
The Facts
What is a bounce-back loan dispute?
Bounce-back loans (BBLs) were introduced to support businesses during the COVID pandemic. While they offered a fast and accessible solution at a difficult time, recovery action now includes bank demands, debt collectors, insolvency proceedings, and director conduct investigations. Disputes typically involve alleged misuse of funds, non‑payment, or retrospective questions about eligibility.
The law
BBLs carry a government guarantee to the lender – not to the borrower – and defaulting can trigger recovery action. While they should not require personal guarantees, individual liability can arise due to related facilities or separate debts. In insolvency or liquidation, office‑holders and the Insolvency Service may review the use of BBL funds to determine if spending was aligned with legitimate business purposes.
Your rights
Yes, depending on the facts of the case, you may be able to challenge liability, limit claims from liquidators or negotiate repayment plans or reductions. Complex Law can help you reduce your exposure and limit personal risk, respond effectively to Insolvency Service questionnaires to avoid unnecessary findings, and protect your personal assets through compliant restructuring or insolvency.
Next steps
Gather all relevant correspondence, loan agreements, and documents showing BBL drawdowns and associated spending to show business use. Don’t transfer any assets before you have received legal advice, as there is a risk you will worsen your position. Speak to Complex Law and we’ll assign a specialist solicitor with experience in bounce back loan disputes to review your evidence and plan the best route forward.
How Complex Law can help
We provide clear, practical advice to reduce personal exposure – reviewing loan terms and conduct, preparing robust responses, negotiating settlements, and defending claims or director investigations.
Director liability and conduct
Our specialist solicitors can offer expert legal advice on wrongful trading, misuse allegations, transactions at undervalue/preferences, and potential disqualification or compensation orders.
Lender and liquidator engagement
We respond to recovery demands, challenge errors, negotiate realistic repayment plans, and handle liquidator queries and claims on your behalf, helping to make the process less stressful and easier to navigate.
Evidence and audit readiness
We can help reconstruct records, map bounce back loan spending to business requirements, and prepare clear explanations with supporting documents to minimise the risk of adverse inferences.
Clear and flexible fees
We can usually offer fixed‑fee options for initial reviews, responses, and negotiations, and for more complex matters involving court proceedings, we offer a staged fee structure. We’ll clearly explain all costs upfront.
Do you have a claim?
Are you facing an issue with a bounce-back loan agreement or repayment similar to those on our checklist? If so, it may be time to seek legal advice.
Speak to Complex Law to discuss your situation in more detail and explore the options available to you.
Claim checklist
You’ve received a demand or court papers from the bank or debt collectors.
A liquidator has queried a bounce-back loan you received or alleged misuse.
The Insolvency Service has sent a conduct questionnaire or warned of disqualification.
You’re worried about personal liability, guarantees, or protecting your home/assets.
Legal services tailored to your needs
Our practice is focused on three areas of law: Consumer Claims, Individuals, and Businesses (Complex 360), making it easy to match your legal issue with the right team and strategy.
Consumer Claims
If you’ve been missold a loan or targeted by fraudsters or scammers, you don’t have to face the fallout alone. We’ll represent you on a no-win, no-fee basis.
What Others Say
Hear from our past clients
We’re proud of our success rate. Over the last four decades, we’ve helped thousands of clients secure the judgments, compensation, settlements, or resolutions they were seeking.
Excellent rating
Paul W
Ridiculously easy to check and apply. All the searching is done for you in literally one minute. A soft credit check is required but doesn't impact your score. Go and claim what’s rightly owed!
Kathleen H
This is the first time I have contacted Complex Law. It was easy and I got a quick response. I was shocked how many finance companies they found within half an hour. There was no way I would have remembered these companies.
Sidali S
Really pleased with how easy it was to fill out the complaint form. The layout was clear, and the steps were simple to follow, which made the whole process quick and stress-free. It’s great to see such an efficient and user-friendly system in place.
Frequently asked questions
If you don’t find the answer to your question here, get in touch with us and we’ll be happy to help.
It’s possible. The standard terms of most bounce-back loans did not require personal guarantees; however, there are situations where personal liability may still arise. This can include wrongful trading, misfeasance or unfit conduct, guarantees on other debts or a compensation order made after director disqualification. Complex Law can review your agreement and any contributing factors to confirm your legal position.
Funds supplied under COVID-era bounce-back loans were intended to support legitimate business purposes, such as working capital, covering overheads, or making payments to suppliers. Any personal spending can be subject to legal challenge. Our specialist team can help you review your financial records and prepare the necessary evidence to explain the business rationale behind any transactions that might be in question.
Yes, this is often possible. Lenders and liquidators are usually open to accepting a structured plan or settlement that may include a reduction in the total amount owed, as long as there is clear evidence of affordability. Complex Law will handle any settlement negotiations on your behalf, ensuring you have the best chance of reducing the immediate impact of any repayment.
It’s vital to secure legal representation as soon as possible, as timelines are short. If you choose to work with Complex Law, we’ll assign you a specialist solicitor experienced in company law. They will act quickly to respond to the Insolvency Service on your behalf, assess the options available to you in terms of settlement (and the potential consequences, such as compensation orders) and work with you to plan your defence.
It depends on the outcome, but generally speaking, yes, court judgments and insolvency outcomes can negatively impact your personal credit status and your eligibility for future directorships. Complex Law can advise on the precise impact based on the facts of your case, and any mitigation strategies available to you.
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