We do not know if David Godderdge put it all on black but we do know from the Insolvency Service report dated 20 April 2022 he vacuumed up a Bounce Back Loan using inflated sales figures. Instead of using it to support his roofing business, he gambled £13,000 in only three weeks. He is now Bankrupt.
Gambling was not a permitted use for Bounce Back Loan Support and it can lead to a Bankruptcy Restriction Order. Due to the risk he posed to other creditors, the Official Receiver sought to extend David Godderidge’s bankruptcy restrictions. His bankruptcy undertaking extends his restrictions for 7 years and means he is limited to what credit he can access, and he cannot act as a company director without the permission of the court.
The Insolvency Service secured restrictions also against a gym operator after a further false application for a bounce back loan.
In separate applications, Junaid Dar (31), from Birmingham, and David Michael Godderidge (40), from Tamworth, falsely applied for close to £60,000 from the Bounce Back Loan scheme, intended to support businesses during the pandemic.
Junaid Dar applied for a Bounce Bank Loan after he submitted accurate financial statements and in May 2020, received £13,000. However, Dar also applied for additional loans by applying to two separate financial institutions. The company received in total a further £32,500 in loans to which it was not entitled to. Junaid Dar is now Disqualified as a Director from running companies for 11 years, effective from 27 April 2022.
Insolvency Service Comment
Sue Macleod for the Insolvency Service, said:
Bounce Back Loans were made available for trading businesses adversely affected by the pandemic and were issued based on accurate financial statements.
Both Junaid Dar and David Godderidge cynically applied for loans far greater than they were entitled to and clearly thought they could get away it. Thankfully our interventions uncovered their abuse and their restrictions will prevent them from abusing their position in the future.
Cannot Repay A Bounce Back Loan?
If you cannot repay a Bounce Back Loan with your company ceasing to trade and you want to close it down then we can help you with that process. We are fully licensed to enable you to consider placing a company into Creditors Voluntary Liquidation and if it is right for the circumstances. This may enable you to make a fresh start but in any event, the Liquidation can look to address the Bounce Back Loan. Contact us for a quote and free initial confidential advice.
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