Bankruptcy restrictions for scaffolders extended – GOV.UK


Lee Thomas Hobson (34), from Sunderland, was a scaffolding builder and was traded as LTH Scaffolding.

In December 2019, however, he ended his activities as LTH Scaffolding and started working for a separate company.

However, this did not prevent him from applying for a government-backed bounce back loan of £ 50,000 on behalf of LTH Scaffolding, which he received on May 12, 2020.

The money was then used to repay third parties instead of covering ongoing business expenses.

Lee Hobson was declared bankrupt on October 26, 2020. However, due to his improper application for the bounce back loan and the risk Lee Hobson posed to other creditors, the liquidator tried to further stretch his bankruptcy restrictions.

Lee Hobson’s bankruptcy extends his restrictions by 10 years, which means he is limited to the credit he can access and unable to act as a director of the company without the permission of the court.

Richard Gill, the official recipient, said:

Mr Hobson was not eligible for the loan because he had ceased working after taking up employment. This money was not used for its intended purpose.

Bounce-back loans are designed to enable companies to weather the COVID-19 lockdown and bring economic benefits to a company.

It is hoped that this bankruptcy restriction obligation will serve as a deterrent to others who may wish to abuse the government’s COVID-19 relief programs.

Notes for editors

Lee Thomas Hobson is from Sunderland and was born in August 1987.

Details on Lee Thomas Hobson’s company can be found on the Individual bankruptcy register

The bankruptcy restrictions are extensive. The effects are the same whether you are subject to a bankruptcy order or an obligation. Guide to the main legal consequences of an order or company to limit bankruptcy.

Information on the work of the bankruptcy service and complaints in the event of financial misconduct

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