Let’s help ease the pain of bankruptcy

News from the government that personal bankruptcies are at record levels is dismaying. The phrase \"There but for the grace of God go I\" springs to mind.

There’s a fine line between financial failure and success so without wishing to encourage ambulance chasing, this week’s article is about an opportunity to help with one of our nation’s many problems – bankruptcy.

Idealists scorn the idea of making money out of other people’s misery but my suggestion is based on a mix of prevention being better than cure and assisting those unfortunates already experiencing problems.

People want and need good financial advice when they are in trouble. It should be recognised that many people find themselves in financial difficulties not through their own mis-management but due to circumstances beyond their control. For example, accident, sickness or unemployment can wreak havoc on any family or business but the unexpected demise of a business that owes you thousands of pounds for stock or services can also bring the bailiffs to your door. See helping people in difficulty as an act of kindness and earn a living being a good Samaritan.

I’m not directing this at financial advisers, though they could play a major role in restructuring a client’s assets, but mortgage brokers who are equipped to advise on the big asset, the family home.

Most Mortgage Strategy readers will have come across someone who has gone bankrupt but many will not have the skills to deal with the laws of insolvency. Why not form an alliance with a practice that specialises in this field? Your local phone directory or the internet will point you in the right direction. All you need to convince them of is that you will share any commissions and do the business properly, i.e. complete the remortgage arrangements professionally and in quick time.

Remortgaging has been used as a tool to solve financial problems for many years and at times of severe hardship it can be the only solution. When creditors are baying for blood, time is of the essence so any delays in processing a mortgage can have serious consequences such as repossession. Don’t let this pressure put you off but rather see it as an incentive to assist the needy by helping them keep their family home.

For those of you thinking about my suggestion, be aware it can be heart rending when things go pear shaped but unbelievably rewarding when you get a result. It will change your life for the better as you meet decent people battling to keep their homes and you ride to their rescue as their knight in shining armour.

What’s more your bank manager will be pleased and, provided you do a good job, you’ll have a client for life and someone you can rely on for referrals.