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.
If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances. As council tax arrears […]
A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer. Even if you can secure borrowing, lenders are only likely to offer unfavourable […]
If you owe a debt of £5,000 or less, your creditor may send you a Simple Procedure Notice of Claim. This is a relatively new procedure that was brought in by the Scottish government and commenced on 28th November 2016 – their intention being to make it easier to resolve debt disputes. So if you’ve […]
A Bankruptcy Restriction Order may be made against you if it’s believed that you acted dishonestly, recklessly or unlawfully before you were made bankrupt, or during your bankruptcy. Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness […]
Debt payment programmes (DPPs) are an intrinsic part of the Debt Arrangement Scheme, which allows you to pay off unsecured debt at an affordable rate. If a debt payment programme is rejected by one or more creditors, the DAS Administrator can apply their discretion on whether to approve the plan, after using a test to […]
If you’re struggling to pay your unsecured debts, a debt payment programme could help you to regain control of the situation, and become financially stable again. Debt payment programmes are a fundamental part of the Debt Arrangement Scheme (DAS) in Scotland, and allow you to repay over a longer period of time. These programmes involve […]