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.

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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.

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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

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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.

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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.

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Christopher Biggins has recently been quoted as saying that the bankruptcy process was the best thing that ever happened to him. Apparently, it taught him valuable life lessons about the difference between cost and value, the importance of money management and taking a responsible approach to spending. Given the trend of bankruptcy and bad debt among his fellow “I’m a Celebrity… Get me Out of Here!” contestants, it would seem to be a lesson that they’d all do well to learn.

Essentially celebrities, or more broadly, those in the entertainment industry, are in jobs that cannot guarantee a stable income for an extended period. Some would argue, what jobs can in this day and age? Well, for entertainers more than most, the work can come and go but the habit of excessive spending remains pretty constant. Others who are self employed will understand the transient nature of the work but the spending habits of celebrities will be alien to the vast majority.

The root of Christopher Biggins’ debt problem will not be unrecognisable to his peers; it boils down to inadequate or non-existent budgeting. When the work isn’t there, the money isn’t coming in. Well, at least certainly not fast enough to match the spending. That, in the most basic terms, is at the core of the vast majority of people’s financial ill-health. Luckily, he sought out debt advice and decided, with the help of the advisor, that declaring bankruptcy was going to be the best option for someone in his situation, facing his level of debt.

The benefit of bankruptcy, if it can be described as such, for someone in Christopher Biggins’ position, who’s struggling to keep control of their spending, is the limit it places on your access to credit. You’re only allowed to keep only one card and a single bank account. So, if you can’t manage your own personal finance, bankruptcy simply makes it a lot harder to spend. Naturally, it’s not the only debt solution currently available on the market UK market. In fact, bankruptcy is the most severe debt solution. It’s possible that you could lose the equity in your home or some other valuable asset to the service your outstanding debt. If bankruptcy is excessive for someone in your situation, it is best avoided. Speak to a dedicated debt advisor and consider something like an IVA instead.

Biggins bankruptcy allowed him to keep his home and other assets. Often though, bankruptcy proceedings will lead to repossession in order to service the debt. Another perk of the IVA is that it lets you keep your home and other assets, as long as you keep up with the repayment plan. The stigma surrounding bankruptcy could be taken two ways in relation to high profile people like celebs. On one hand, they have a reputation to uphold but on the other, courting controversy can prove to be lucrative. For most of us though, the added privacy of an IVA, as opposed to being published in your local newspapers and the London Gazette like bankruptcy, is a significant benefit.

No matter which debt solution is found to be the most suitable for someone in your circumstances, we can learn from Biggins’ debt problem in the way he sought out professional advice. Perhaps had he done it sooner, he would have avoided bankruptcy. Then again, it seems to have worked for him. For a free, impartial check-up of your financial health, visit www.debtsolver.co.uk and a dedicated debt advisor will diagnose your problem and prescribe the proper debt solution.

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Are you currently embroiled in a bitter feud? Are you looking for a fiendish, dastardly way to hit them where it hurts? Well, probably not. If you were however, you’d be able to go straight for their financial security.

Under the Government’s proposed scheme, which will allow individuals to file for a DIY bankruptcy online, a bit of identity theft and £360 would let you bankrupt your sworn enemy, or let them bankrupt you. Although such soap-opera styled, pantomime villainy might seem a bit far fetched, it does actually make you think about the security of our finances.

The proposal for self-service insolvency has arisen in response to the mounting backlog of bankruptcy applications that are waiting to be processed through the UK courts. It will have its benefits for those people who wish to declare themselves bankrupt. Firstly, they’ll be able to avoid the court process and the long wait that goes with it. In fact, for parts of England and Wales the wait can be as long as three months between making the initial application and being granted a bankruptcy order. For people in a highly serious situation, facing the stress of mounting debt and severe financial difficulties, this is a huge amount of time to wait for the injunction that can save them from their creditors. Naturally, these new measures are intended to cut this highly stressful and potentially damaging waiting time from months to days.

There is cause for alarm though. The threat of malicious bankruptcies, in which blameless victims could find themselves unexpectedly bankrupt at the hands of spiteful, identity thieving impersonators, is real and should emphasise the vital importance of tight security. As we are all aware, identity theft is something that we all have to be vigilant about. The first sign to the unsuspecting victim would know be the broad based shutting down of their financial affairs. They would risk losing their home and other valuable assets; borrowing would become hugely difficult and incredibly expensive; and they could well lose their job if theirs is a profession which precludes those subject to a bankruptcy order.

As severe as the situation is, there is also the fear that there will be people who make an application without proper consideration of the consequences. As there is no requirement for anyone to take professional advice before making their application, unnecessary or ill-advised applications could become commonplace. Essentially, there is nothing to stop you getting back from the pub and deciding to file for bankruptcy, then waking up in the morning and wishing you hadn’t. For such a serious financial process, the most severe debt solution on the market, it’s very important to talk the situation through with an impartial debt advisor. If you’re worried about your financial health, www.debtsolver.co.uk offer free, no obligation debt checkups. From this, one of their dedicated financial advisors will be able to diagnose your debt and prescribe the proper debt solution to suit you. If this is bankruptcy, they’ll support you through the process, if your situation is more suited to an alternative debt solution, they’ll advise you of your options.

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The rising tide of insolvency in the UK is causing the government to call for some drastic measures to be put in place in order to ease the mounting pressure on the courts. The number of bankruptcy applications currently awaiting court approval is causing such a backlog that there are ongoing discussions surrounding a proposal to introduce a ‘self-service’ system for online insolvency. In some places, the wait between the initial application to the court and a bankruptcy order being granted is as long as three months. Anything that can be done to alleviate the stress of this procedure is beneficial, as bankruptcy is the most severe debt solution on the market. However, a move that could promote the concept of bankruptcy as a quick-fix for those facing mounting debt could be ultimately damaging.

Bankruptcy should always be your last resort when searching for a debt solution. A specialist debt advisor would always suggest that you weigh up all of the potential avenues of debt help at your disposal before settling on any in one particular. This is doubly important when serious debt problems are prompting you to consider bankruptcy as a possible solution. Bankruptcy can cost you your home and any other valuable assets that may be used to repay your creditors. After taking a reasonable amount of your salary to cover your cost of living, the rest could go towards an Income Payments Order. The implications are long-lasting in other ways too. A record of insolvency can also hamper any future career plans and damage your credit rating to the point where you struggle to secure credit, make down payments or even attain a mortgage.

Although filling in a bankruptcy petition online can seem like a discreet way of managing a potentially embarrassing situation, it’s important to remember that bankruptcies are still listed in local newspapers and the London Gazette. The stigma of insolvency will mean different things to different people but it is definitely something to consider. When faced with mounting debt pressure, you might feel that all of these consequences are necessary evils and would be worth facing to be debt free. Do bear in that your student loan, any outstanding fines and some other debts aren’t actually covered by a bankruptcy petition. It’s also worth remembering that there are other options on the market and that bankruptcy is not an easy way out of bad debt.

An IVA, or Individual Voluntary Agreement, is a far more accessible and less severe debt solution. It will allow you to keep your home, repay a reasonable, affordable amount each month and after a given period, usually 60 months, any remaining debt will be written off.  There are, of course, other debt solutions out there. To be sure you are taking the right option, it’s essential to get specialist debt advice. Contact Debtsolver for free debt help whenever you find yourself facing debt problems.

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Although insolvency is not as severe as it once was, it is still the debt solution of last resort. At one time, the bankruptcy term was five years and the effect of the order on your credit rating was even more long lasting. Now, in an effort to minimise the stress of the process, the term is usually complete within 12 months. In some cases, an Income Payment Order could be put in place to garnish your salary in further service of your outstanding debt but this is only in severe cases. There’s even a government proposal in place to allow individuals to petition for their own bankruptcy online. The aim of this proposal is to minimise the waiting period between making an initial petition and having your time in court, as in some areas of the UK, this can be as long as three months.

This obviously points to an increased number of people facing the threat of insolvency. However, even with insolvency affecting far more Brits than ever before, there is still a certain stigma surrounding the entire bankruptcy process. Your bankruptcy order is a matter of public record. As such, the details of your insolvency will be published in your local paper. It is understandable that the effect of the bankruptcy order should be recorded in your credit report. It’s only natural that any effort to secure credit in excess of £500 should require that you inform the lender of your insolvency. Also, if you were to approach a business to carry out works, it is understandable to expect that they be totally honest with you about any history of liquidation. It’s also understandable that the stigma surrounding it might put you off.

Even though there is less stigma surrounding insolvency, since a greater number of people understand the causes that can lead you there, bankruptcy is something that will always have that connotation. It is no way something to be celebrated, neither is it a quick fix or something to be taken lightly. It is the most severe debt solution on the market and should only be considered as a last resort, as it can cost your home and other assets and place limitations on your career choices. You should seek specialist debt advice about the alternative options that are open to you. An IVA would definitely be preferable as it’s a private agreement between you and your creditors. So, there’s no stigma about your peer group knowing your financial circumstances. The term is usually 5 years but after this time, the remainder of your debt is written off and your assets are safe from liquidation.

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In the tradition of ITV’s “I’m a Celebrity… Get me out of here!”, 2009 saw the bankruptcy of jungle escapee and celebrity chef John Burton Race. Having appeared on the hit television show in 2007, he joined not-so-exclusive group of “I’m a Celebrity…” contestants who have failed to avoid the financial poisoned chalice that follows the programme. As we look back on the past year, financial hardships and the impact of recession have featured heavily and with retrospect, we can see where things went wrong and highlight what we’ll do differently in the future. For many though, 2009 will be entirely summed up by the headlines that forecast financial doom and gloom. If we take the example of John Burton Race, as someone who found bankruptcy to be a solution to their debt problem, we can look at the things that he might have done differently. After all, bankruptcy is the most severe debt solution on the market and although it may be the solution best suited to some circumstances, there are alternatives.

Celebrity chef John Burton Race filed a personal bankruptcy application only two months after his ex-wife Kim was made bankrupt by a creditor application to the High Court for an outstanding debt of £15,000. The couple had owned the Michelin starred restaurant, The New Angel in Dartmouth, which he was ordered by a Judge to liquidate, along with other assets, including the family home and his entire collection of 42 vintage cars. On the 27th of November 2007, while John was still competing with his fellow celebrities in the Australian Outback for the ITV programme, Kim closed the restaurant.

Although John Burton Race was forced to sell the restaurant by the court, it was actually bought by his friend, the millionaire owner of LastMinute.com, Clive Jacobs. This allowed Race to remain at the restaurant as head chef. According to reports from the Insolvency Service, Burton Race declared himself bankrupt in March and as a result, his assets have now been frozen and his creditors will now have to apply to his Insolvency Practitioner in order to be paid. The bankruptcy application does get your creditors off your back in this way, making them direct all correspondence to your Insolvency Practitioner. However, as highlighted by the case of Burton Race, it can also cost you all of your most valuable assets, which are taken to service your debt. If it could’ve been avoided, John would’ve been far better advised to go for an IVA in order to solve his mounting debt problems.

The Individual Voluntary Arrangement would probably have been a better option for Kim too, as she was petitioned for bankruptcy due to an outstanding debt of £15,000, the threshold of unsecured debt required to apply for an IVA. The total debt value also has to be divided between at least three creditors. With an IVA, you’ll not usually have to pay back all of your debts as your creditors will write off a percentage of them. In order to have it accepted, 75% of your creditors will need to be in favour but this percentage is defined in terms of value rather than by creditor headcount. As a homeowner, you’re home will not be at risk as long as you stick to the repayment plan that you’ll draw up with your Insolvency Practitioner. You may need to give up some of the equity in your property to service your debt but your assets are far safer than they would be with bankruptcy.

Talking to one of the specialist debt advisors at Debtsolver, at the earliest sign of impending debt problems, would have helped to safeguard Burton Race’s assets from bankruptcy and liquidation. If you are worried about your financial situation, talk to Debtsolver for impartial debt help and a solution to your personal debt problem.

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