Former Scotland Football Captain Barry Ferguson Enters Bankruptcy
July 31, 2017
Barry Ferguson, the former captain of Scotland’s national football team, has entered bankruptcy on a voluntary basis having become insolvent and unable to service some very substantial debts.
The ex-Rangers star, aged 39, is understood to have had more than £1.4 million worth of outstanding debts as he entered bankruptcy.
Ferguson was until recently the manager of Clyde Football Club but stepped down from that post in February.
A key contributor to the former footballer’s financial problems is understood to be his receipt of payments via Employee Benefit Trusts (EBTs) from Rangers, his former employer, which recently lost a high profile legal battle with HMRC.
Ferguson is understood to have received in the region of £2.5 million in total via EBTs but he has since been ordered to repay money given to him in that manner.
He was subsequently left with sizable bills from HMRC which he was then unable to settle.
Another issue for the former footballer was his involvement in a film production operation called Eclipse, which has since been legally designated as being a tax avoidance scheme.
The Accountant in Bankruptcy, Scotland’s official insolvency service, approved Ferguson’s bankruptcy application in July.
Meanwhile, Rangers Football Club recently found itself on the wrong side of a court ruling in relation to EBTs, which it was accused of using to pay its players, managers and director in a way that effectively avoided taxation.
Judges in the case decided that those payments should have been viewed by relevant authorities as taxable earnings and not tax-free loans as Rangers had apparently been characterising them between 2001 and 2010.
In April 2016, the Supreme Court upheld a judgement that identified the Eclipse film production business, with which Ferguson had an association, as being in effect a tax avoidance scheme.
Hundreds of investors, including several former international football players and managers, were reported to be facing hefty tax repayment demands and possible bankruptcy as a result of that ruling.
If you live anywhere in Scotland and you’d like to know more about insolvency or bankruptcy then Scotland Debt Solutions can help. Contact us directly to arrange a free consultation.
The start of a new year is the perfect time to take stock of your finances and put plans in place for a financially savvy year ahead. While you may feel your problems are insurmountable, there are always things you can do to help, most of them surprisingly easy. Here are 7 ways you can […]
If you have credit card debt which is attracting a high level of interest, moving this balance onto a lower interest card could save you a considerable amount of money. This process is known as a ‘balance transfer’, and if done correctly, this process could save you money and also reduce the time it takes […]
Many thousands of young Brits are being actively encouraged towards taking on debt and spending borrowed money even before they reach their 18th birthdays. That’s according to the price comparison website comparethemarket.com, whose research suggests that roughly one in four 16 and 17 year olds in the UK have been offered credit cards or asked […]
If you’re in serious debt with no hope of repaying your unsecured creditors, you don’t have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration (bankruptcy in Scotland). This also prevents your situation from worsening. There are two […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
Scotland has a number of formal debt solutions that can help you deal with a difficult financial situation. It’s advisable to take action as soon as possible, however, to prevent your levels of debt escalating when interest and other charges are added. Obtaining professional advice is key in this respect. An approved money advisor or […]