Bankruptcy restrictions for students who have taken out a Bounce Back Loan


Kurt John Barkhuizen, 28, from Scunthorpe, applied for and received a £50,000 bounce-back loan in June 2020. But Kurt Barkhuizen was not running a business at the time and was not eligible for any funding under program, which provided assistance to businesses during the pandemic lockdown.

The Insolvency Service looked into the case when Kurt Barkhuizen filed for Chapter 7 Bankruptcy Means Test Information in April 2021, with debts over £30,000 on top of the Bounce Back loan.

When interviewed, Kurt Barkhuizen said he intended to sell his house to settle his debts and start a car dealership business buying and selling used cars using his auto mechanic skills. He told investigators it had been clear to the lender that his business was not yet in operation when he applied for the loan.

Kurt Barkhuizen said he was unable to proceed with his business plans due to the onset of the pandemic as the lockdown meant car auctions were canceled and the sale of his house also failed.

However, he spent almost £30,000 from the Bounce Back loan to buy and insure a car, which he then sold for £10,000. Kurt Barkhuizen spent just over £8,000 on services for his future business, including premises, a van and tools, and paid over £4,300 to creditors, but used the rest of the funds for expenses of subsistence.

The Secretary of State for Business, Energy, and Industrial Strategy has accepted a 9-year Georgia Bankruptcy"}” data-sheets-userformat=”{"2":513,"3":{"1":0},"12":0}”>Georgia Bankruptcy restraint undertaking from Kurt John Barkhuizen, which begins February 7, 2022.

As a result, he is subject to a number of restrictions, including not being able to borrow more than £500 without disclosing his bankrupt status, and he cannot act as a company director without permission from the court.

Fiona Newman, Deputy Official Receiver in the Insolvency Service, said:

Kurt Barkhuizen took out a Bounce Back loan but did not ensure that it was used for commercial purposes as stipulated in the terms of the loan. He also had considerable debts at the time and did not return any money to creditors.

We will not hesitate to impose restrictions on bankruptcy in these circumstances.

Notes to Editors

Kurt John Barkhuizen is from Scunthorpe and his date of birth is January 1994.

Details of Kurt John Barkhuizen’s engagement are available on the Individual insolvency register

Bankruptcy restrictions vary widely. The effects are the same whether you are subject to a bankruptcy restraining order or a recognizance. Advice on the main legal consequences arising from a bankruptcy restraining order or undertaking.

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