England rugby legend Lawrence Dallaglio's bankruptcy has been extended for three months, while he faces a new insolvency hearing over a £500,000 tax bill. The 2003 World Cup winner was declared bankrupt last year after his divorce from wife Alice, amid accusations of infidelity on both sides. The divorce forced Dallaglio to sell their family home for £2.4 million last May, after it was initially listed for £3.3 million. The day after the sale, Dallaglio was declared bankrupt and ordered to hand over his share of the proceeds to pay off an overdrawn director's loan of over £366,500.
Extension of Bankruptcy Restrictions
Typically, bankruptcy restrictions end after 12 months in England and Wales, but they can be extended by a judge. The joint trustee of Dallaglio's bankruptcy applied to the High Court in April to extend restrictions for a further three months. Dallaglio told The Telegraph: "This was agreed by mutual consent while I continue to work with my trustee in bankruptcy in dealing with my estate." Documents published in December revealed Dallaglio owed an additional £423,570 in overdrawn director's loans for his failed sports company, Lawrence Dallaglio Ltd. He also owes more than £60,000 to liquidators, more than two years after they were appointed. Claims totalling about £350,000 and £61,000 have been made by HM Revenue & Customs and two other creditors.
Financial Woes and Property Sale
Dallaglio had hoped to pocket £3.3 million from the sale of his four-bedroom property in Richmond, which he owned for nearly 25 years. However, he sold it at a knockdown price, losing £600,000 due to his desperate financial situation. The property was purchased by a young Premier League footballer. While Dallaglio made a profit on the sale—having bought it for £925,000 in 2001—the equity was only around £1.2 million. The sale was triggered by his wife Alice, who sought an urgent order to sell the house to stave off Dallaglio's financial ruin. Despite the sale, Dallaglio was declared bankrupt after a creditor secured an order.
This came two years after Dallaglio narrowly avoided bankruptcy following a petition by HMRC over an unpaid £700,000 tax bill. During proceedings, his financial woes were revealed, showing his sports business, set up in 1997, owed money to multiple creditors. To prevent the firm from being wound up, Dallaglio agreed to an individual voluntary agreement to pay off his debts. The rugby star and his wife, married in Lake Como in 2005, sold their home months after finalising their divorce in court. In February, it was reported that Dallaglio had moved into a rented house near St Albans with his new partner.
