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Repaying Bounce Back Loan

4 replies

Wingingit247 · 05/12/2025 18:56

I never thought I’d be asking this question! I’ve always been scrupulously responsible about any money borrowed, never missed payments on anything.

During difficult times when COVID was affecting many of us, I took out a BBL as a sole trader, and have been paying it back ever since. Unfortunately, around 18 months ago I was diagnosed with a permanent life changing illness which has meant I won’t be able to work again, amongst many other things. I’ve had to close my business, and as I will no longer be drawing an income I will be existing solely on benefits. It’s not the most fun, but I’m not dying and I’m very grateful for that.

However, I will not be able to afford to continue to repay the amount I’ve been repaying on the loan, there’s no way around this. I spoke to the bank today about maybe reducing the monthly payment by spreading it over a longer period, I’m trying to work with them but there’s nothing that they’re willing to do at this stage.

So my question is this, what’s the worst they can do to me if I stop paying? I’m so so worried, but realistically if the worst is a default on my credit file then so be it. I’ll never want to take out credit again. Will just have to stay with current lender until mortgage is repaid. I’m really not looking for an easy way out here, but not sure what other options I have at this point?

OP posts:
tarheelbaby · 05/12/2025 18:58

Hugs to you, OP. No idea about the BBL or any finances but didn't want to read and run, as they say. Maybe the loan repayment comes out of winding up your business?

Cherrybomb00 · 05/12/2025 19:03

Sorry to hear you’re in this position.

BBL terms cannot be extended because the scheme is closed, if you miss repayments the bank will transfer you to their collections department who will seek repayment from you personally as you took the lending as a sole trader. They can initiate bankruptcy proceedings if you can’t repay.

Harassedevictee · 05/12/2025 22:53

My advice is to keep on paying as much as you can afford. Every payment reduces the sum so arrears build up more slowly. Engage with the company when they contact you.

Wingingit247 · 06/12/2025 21:21

Thanks everyone, I’ll just keep going as long as I can

OP posts:
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