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.
Your personal credit score plays an important part in securing new loans and credit, and can affect your financial life for better or worse. Lenders use the information in your credit file to determine whether you present a high risk of default, and if your credit score is low, you may find it difficult to […]
Credit unions offer a range of financial products including current accounts, savings accounts, and loans, and can be a good alternative to banks and building societies whilst also helping your cash flow. There are credit unions all around the UK, almost 100 of them operating in Scotland. They’re not always widely advertised, however, and although […]
It’s a worrying situation when you realise your outgoings exceed your income, and it can be difficult to prevent debt in this situation, but there are solid steps you can take to get back on track – you just need to act quickly. Increasing your income or reducing the money going out are essentially what […]
If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work. As far as your old employment is concerned, it’s important that you check your final wage slip to […]
If you are a Scottish resident in financial difficulty, you may have entered into a Trust Deed in order to restructure debt repayments to creditors. A Trust Deed is a fixed voluntary agreement made between the debtor and creditor, with the help of a trustee. Debt is broken down into smaller, affordable instalments, typically lasting […]
A Debt Arrangement Scheme (DAS) is a government backed scheme which allows you to repay debt through contractual, monthly instalments without the threat of legal action and incurring penalties or interest. The scheme was established in 2004 for Scottish residents in debt, providing an alternative solution to sequestration, the Scottish equivalent of bankruptcy. A Debt […]