Football star Noel Hunt may be forced to file for bankruptcy thanks to an unpaid council tax bill. The former Dundee United striker, who now plays for Reading, may have to face home raids and have his wages arrested if he does not pay his £2,281 debt due for settlement on Wednesday, 27 October 2010.

As reported by the Daily Record, Noel Hunt who currently plays for English Championship side Reading, owes the money to Perth and Kinross Council. After months of trying to pursue their claim against him, the council has finally won a decree ordering him to pay up or face bankruptcy.

A warrant has been issued against Hunt, and if he fails to pay, his belongings could be seized and auctioned off. Hunt has had previous legal discrepancies in the past over unpaid bills.

In papers displayed at the Perth Sheriff Council, the council describes Hunt as being ‘present whereabouts unknown’. Sheriff Officer Dale Barret has warned Hunt that if he does not pay the full sum within 28 days of issue, further action will be taken. This could include arrestments of his earnings and auctioning off his possessions to pay the bill.

He also added that Hunt is liable to be declared bankrupt. A source said: ‘This has been going on for a few months now. Hunt seems to have buried his head in the sand because it is not as if he has been back in court to dispute the figure. Maybe he just hopes it will go away but it’s too far down the line for that.’

Hunt earned £600,000 when he moved to Reading in 2008 after scoring an impressive 23 goals in 64 games for Dundee United. His 15 goals in 47 appearances for the Championship promotion hopefuls have earned him three international caps for Ireland. However, his career has been affected by serious injury.

Hunt’s legal woes began in 2008, when he appeared at Dundee District Court and admitted to using a mobile phone twice while driving.

The court case drew controversy after Hunt tried to exclude reporters so he could have his case heard in private. His solicitor Kevin Hampton explained: ‘There was a very good personal reason for using the telephone on both occasions. It was a very serious matter. There is certain information Mr Hunt has given me that he does not wish to be made known in a public court.’

Hunt was eventually fined £120 and had six penalty points put on his license.

Later in 2008, Hunt was taken to court again after failing to pay surveyor firm, J & E Shepherd, £350 for a report after he purchased his new home on the exclusive Priority Grange development.

Hunt’s agent was unavailable for comment.

It’s a simple case of the higher you climb, the harder you fall. Sarah Ferguson, the Duchess of York, may be the first member of the Royal Family to file for voluntary bankruptcy. According to sources, the Duchess is believed to be as much as £5 million in debt. And despite this steep amount Fergie, as she is commonly known, is determined to ward off bankruptcy by clearing her debt.

Fergie’s financial woes began soon after her divorce from Prince Andrew in 1996. Since the divorce she has a number of failed businesses, including a US promotions company Hartmoor which went under in 2009 due to a £650,000 debt.

However, despite the rumours, a spokesman recently told the Guardian newspaper that the actual amount owing is exaggerated. The spokesman claims the amount is closer to £2 million. Upon speaking to the Guardian, the spokesman added, ‘There is a number of options open to the Duchess, of which bankruptcy is one. But it would be premature to say she is going into bankruptcy as the situation is being managed’.

Ferguson came clean about her financial problems is May after being caught in the middle of a cash-for-access scandal. The scandal began when Sarah was filmed accepting money from a News of the World reporter, posing as a businessman, in exchange for meeting Prince Andrew.

In an interview after the scandal, Sarah revealed to US chat show host Oprah Winfrey that she was in major debt and was considering filing for voluntary bankruptcy. In the interview, Sarah declined to state exactly how much she owed. The Sunday Telegraph stated that of all Ferguson’s debts, more than half was for lawyer’s fees.

Fergie has delved into many projects since divorcing Prince Andrew in 1996. These include writing children’s books, making television documentaries, and acting as a spokeswoman for Weight Watchers in America.

According to one debt expert, despite the reputation and financial issues associated with filing for bankruptcy, Ferguson would benefit from it. Filing for bankruptcy would mean walking away from your debt completely and being able to start afresh. It would be one of the smartest ways to solve debt issues. However, in the case of Sarah Ferguson, not only a public figure but member of the Royal Family, it would be humiliating to have her dirty laundry aired in public.

That being said, in a time of economic turmoil, even the Royal Family cannot escape the wrath of bad financial decisions.

The version we know of bankruptcy differs quite substantially from its medieval origins. This is a good thing: medieval debtors often landed up in jail for the debts they could not afford to repay.
One other difference is the purpose of modern bankruptcy: modern bankruptcy exists chiefly to help the debtor. This is in stark contrast to bankruptcy in the 14th and 15th centuries. The word bankruptcy originates from the Italian for ‘broken bench’ – banca rotta. This is in reference to the tradition of breaking a bankrupt tradesman’s bench.

But this doesn’t answer the original question, which is why we allow bankruptcy in the first place?
One easy answer to the question is that we want to help people who are in genuine financial turmoil and from which they cannot escape without a lot of assistance. The other side to this coin is that we believe that people deserve a second chance – in life, in finances, in everything.

We believe that the conditions bankruptcy imposes on people to adjust their expectations of their lifestyle. And we expect them to do things differently after their bankruptcy, so that the bankruptcy acts as both a school and a hospital. A school because it teaches the new bankrupt how to better manage their finances and a hospital because it treats not the symptoms of being in too much debt, but because it treats the root of the problem.

These questions and problems have received much thought from some of the most famous philosophers – since antiquity: the question of bankruptcy deals with ethics and moral duties. We want to ensure that creditors be paid but we do not want to extract a pound of flesh from debtors in order to pay the creditor. This is one of the reasons why we no longer throw debtors who are unable to repay their debts in prisons reminiscent of the middle ages.

The decision to apply for a bankruptcy is not an easy one to make but it can often change the financial circumstances of the person applying for it. And surely that is a good enough reason to allow bankruptcy

If you find yourself in the situation where you are being chased by a debt collection agency, there are some important points to bear in mind – five of them to be exact. Here’s the Debtsolver lowdown on how to tackle those dodgy debt collectors.

1. Make sure you know your rights; debt collectors have to abide by rules and regulations that require them to treat you properly. Any abusive language or threatening behaviour should not be tolerated.  The Office of Fair Trading has issued guidelines for debt collectors on how to deal fairly with individuals who have defaulted on a debt.
2. If you are being pursued by a debt collector, chances are that the debt has past the debt collection statute of limitations. This makes it a cheap debt for the collector to pick up from the original owner of the debt. In which case, they will usually consider the debt to have been settled; most often through bankruptcy. Interest in these so called ‘junk’ debts is growing but remember, the statute of limitations has probably expired so talk to a specialist debt advisor or the OFT.
3. Whenever a collector gets in touch with you, make sure you get as many details from them as possible but do not divulge any of your own until you’ve looked into the debt collection agency and the debt they’re chasing. So, first of all, make sure you get the company’s name, address and a telephone number. Have them send you proof that you actually owe the debt; they should already know your address. If they’ve made a mistake and you’re not the debtor, reply with a certified letter and let them know they’ve got the wrong person.
4. Monitor your credit report to make sure that you’ve not been the victim of identity theft and someone is out there running up bad debt in your name. You can request a copy of your statutory credit report, a one-off credit report you can order by post, online or by phone, for a £2 admin fee. We’d recommend getting into the habit of doing this once a year to make sure your records are up to date. Be sure to dispute any questionable debts or collection attempts, report any suspicion of identity theft to the police and keep records of correspondence with collection agencies.
5. If the situation persists, you feel you are being improperly treated by the collection agency or they’ve got the wrong person, get help. The Office of Fair Trading will investigate the conduct of collection agencies and debt specialists will help you to solve the debt problem.

Bankruptcy is the most severe debt solution on the market. However, if it’s right for you, it can free you from the burden of bad debt and allow you to start afresh, more or less. There are debts that will not be written off by bankruptcy, your student loan and child support arrears to name but two, though generally speaking, you are wiping the debt slate clean. Or are you?

There may be restrictions placed on your finances after your discharge from bankruptcy, like Income Payment Orders that continue to take a repayment towards your outstanding debt for a fixed term. However, any assets that you acquire after completion of your bankruptcy term will, for the most part, be out of the reach of the bankruptcy order.

It is possible for you to be approved for further credit after successful completion of the bankruptcy term but this is not a straightforward matter. The best risk scenario is that you are approved for a loan or a new credit card but the rates that you are offered are significantly higher than they would be if it weren’t for the bankruptcy. This is simply because your bankruptcy and poor financial track record make you a higher risk to any potential lenders.

However, taking on more credit after your bankruptcy, proving that you are able to service the debt and adequately manage your finances is central to your recovery. You will help to repair your credit rating and instill greater confidence; not only in any potential lender but also in your own ability to handle credit. Being approved for a credit card is difficult and can be very expensive in terms of interest rates and charges. Debit cards and prepaid credit cards will be much easier to get.

Opening a bank account after bankruptcy is possible but can prove to be expensive. As your bank accounts will be frozen or even cancelled in the event of bankruptcy, you will need to make alternative arrangements for banking. Once the account has unfrozen, it’s possible that your old bank will re-open your account but place additional limitations on it. Talk to your bank to find out what options they can offer you.

Being approved for a mortgage after you’ve completed the bankruptcy term can be difficult too, unless you can afford to put down really big deposit. As this will be highly unlikely after bankruptcy, your best option is to try and repair your credit rating as quickly as possible. In the mean time, renting might be the most viable option but again, your landlord might want to examine your credit history and could deem you too great a risk.

For most people, the immediate feeling after bankruptcy is one of relief. The severe debt problems that you had will probably not have come on overnight so the chances are that you’ve been living with the stress of mounting debt for a while. To have this stress alleviated is a terrific weight off your shoulders. This can soon be replaced by the stress of worrying about life after bankruptcy and the impact that it could have on your ability to take out a loan, buy a house or start a business. There are alternatives to bankruptcy though, like the IVA, which could alleviate some of these concerns.