The 35 year-old singer was listed as bankrupt at the High Court on September 12 under his real name: Duncan Inglis.
Despite selling millions of records and performing worldwide with hits such as ‘All Rise’ during their heyday, Duncan is not the first Blue member to suffer money troubles.
Antony Costa admitted earlier this year he was left struggling to pay the bills after the band split in 2005.
He said at the time: 'I thought Blue and the money were going to last forever and I totally lost control.’
‘I had a champagne taste and didn’t save money,’ he said.
The band reformed in 2009 but failed to recapture their earlier success, and earlier this year, their company Blueworld went into administration, owing thousands of pounds to creditors.
A source told a UK newspaper: 'There was no warning that the band had money problems. This has come as a complete shock.
'Letters have been sent out by the administrators to creditors who are owed substantial sums by the band.'
Duncan’s bankruptcy comes after the boybander recently received sick tweets from trolls threatening his mum Fiona.
The offending Twitter user said he wanted to ‘burn her to cinders’ and then rape her.
‘It was vile, so graphic you couldn’t print the exact wording,’ he said.
The singer –who was unavailable to comment - is currently preparing for a UK tour next month with fellow band mates Antony Costa, Simon Webbe and Lee Ryan.