What is Bankruptcy Marketing

For those who have filed for bankruptcy acquiring credit is usually quite difficult. Credit card companies, auto dealers and mortgage companies require a credit check before they do business. An individual recovering from a bankruptcy still needs to contact these companies. This is what bankruptcy marketing aims to do.

In the year 2005, there were more than two million personal bankruptcies in the United States. This number is expected to go up each year for the near future. Many of these people are going to want to rebuild their credit rating. As you can see by the numbers bankruptcy marketing has untapped potential in providing products and services to these individuals.

With bankruptcy marketing, your non-traditional lenders can target potential clients. It is also a fact that bankruptcy claims are a matter of the public record. These records contain an abundance of information including basics like the name and address, amount of liens, income, the type of bankruptcy filed and of course the status of the claim. The data can be compiled and sorted by several factors, however the filing status and specific type of bankruptcy is most often used.

The most common chapters of bankruptcy are 7 and 13, which are for individuals. Businesses file under Chapter 11. A bankruptcy-marketing plan that focuses on individuals attempting to re-establish their credit would focus on Chapter 7 filers. If the company focuses on debt consolidation then they would target their plan towards people who file for Chapter 13 bankruptcy.

Collecting information on bankruptcy claims is very time consuming. Due to this fact, many companies will hire a marketing firm to provide them the leads needed to conduct their bankruptcy-marketing plan. The requesting company can ask for the information in a customized manner such as by income, location, bankruptcy type and filing status. The information is gathered from courthouses all across the United States. The information and data is updated almost daily. It also must be verified for accuracy as inaccurate information could kill their business of providing quality leads. The lender’s own business information is merged with the data collected.

Bankruptcy marketing is a very effective business tool if the information is accurate and up-to-date. It is a great way for a business to expand their current client base. Do a search on the internet to try to locate a firm that provides this type of data. If possible, try to get a sample of some leads before committing to buy a list.

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