Bounce Back Loan Litigation

Claims against directors for misuse of bounce back loan proceeds and/or government funds advanced during the COVID-19 pandemic

Office holders are likely to encounter instances where directors have misapplied bounce back loans or government grants obtained during the height of the Covid-19 pandemic.

Ashfords LLP offers a cost effective service to office holders to pursue directors for these sums, including undertaking the following work:

  1. Reviewing the merits of a potential claim and prepare a suitable letter of demand
  2. Issuing an application seeking recovery of the misapplied funds
  3. Conducting the litigation 


We anticipate there will be occasions when the assets of the insolvent entity will be insufficient to meet the costs of the proposed claim. Our approach to pricing is to work with you and price work in a way that works best for you. We recognise that some clients like us to enter into an element of price risk sharing in the event that the matter we are working on does not result in successful recovery. For this work, we can offer a range of pricing including fixed fees and risk sharing approaches to pricing.

Where we work on a time costs basis, the insolvent entity will be liable for our time costs in accordance with our usual terms and conditions, to be paid as an expense of the insolvency in accordance with the usual statutory priority. Where there are insufficient funds in the insolvency process to meet our ongoing costs, we note our charges will not be settled. From a practical point of view we are not likely to raise invoices until there are realisations in the insolvency, but reserve the right to do so. We will keep you regularly updated in connection with our time costs.


For each stage of work we have the pricing options available to you to allow you to consider which approach would suit you best. We can offer fixed fees, hourly rates, or risk and reward sharing options, where we charge a % of recoveries.

The fundamental difference between the options is price risk. For the risk and reward share, our higher charges in the event of successful recovery reflect the risk that that the outcome might not be positive and in which case we would receive no fee.

Upon receipt of a completed checklist and all supporting documentation, we will confirm the pricing options available to you.

Please send the completed checklist here.


You will be liable for any disbursements such as Court fees, process server fees, mediation costs, and Counsel’s fees. When we require Counsel to assist we will invite them to enter into similar pricing arrangements with us.


  1. Review the merits and prepare initial letter

Upon receipt of a completed checklist and all supporting documentation, we will review the merits of the potential claim and report to you, prepare letter of demand, pro-actively engage with the director(s), undertake settlement discussions if appropriate.


We will prepare and lodge an application notice and supporting evidence and effect service on the directors. All matters at this stage will be charged for based on a time spent at hourly rates basis as described above for all work with the following options for you to choose from:

If required, we will also discuss ATE insurance with you, introduce you to a broker and assist you with obtaining quotes.


All matters at this stage will be charged for based on a time spent at hourly rates basis as described above for all work to date and following service of the application to conclusion of the proceedings. We may be able to offer a blended hourly rate.

To give office holders certainty, we will be prepared to work to fee caps proportionate to the claim to ensure there is a realisation for the estate. We will discuss this with you following our review of the completed checklist and supporting documentation you provide at the outset of our instructions.

Please complete the form below and we will be in touch with more information about our pricing


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