Bankruptcy marketing is the process by which information about consumers who have filed bankruptcy is gathered. Once you file bankruptcy, your chances of getting fresh credit as per favorable terms are greatly diminished. This is because when you file bankruptcy, your credit score is affected badly. However, you may need cash before you can repair your credit. Usually traditional lenders will shy away from giving you fresh credit. Not only lenders, insurance carriers, credit card issuers etc take your credit score into account before extending credit to you.
Non-traditional lenders use bankruptcy marketing to locate individuals who have filed bankruptcy. They can spot the prospective consumers who can be offered credit. The information can be gathered only when the bankruptcy court publishes details of consumers whose debts have been discharged or those who have come out of bankruptcy. These records are made public. The information contains details like total amount of debt that was repaid, income of the consumer, type of bankruptcy filed by the debtor etc.
There are 6 types of bankruptcy that can be filed. As such the information contained in the bankruptcy marketing report will differ from one another. The marketing plan that is worked out for consumers filing different types of bankruptcy also differs. Since there are innumerable consumers filing bankruptcy every year, it is not possible for the non-traditional lenders to gather such a huge database. So, they hire bankruptcy marketing firms to gather information about consumers filing bankruptcy.
The bankruptcy marketing professionals usually gather information from different courthouses in United States. Data containing details of consumers are regularly updated and checked for accuracy on a regular basis. They are authenticated before they are mailed to the lenders.
In a nut shell, bankruptcy marketing is a powerful tool with the help of which non-traditional lenders can improve their chances of selling their products to the individuals who have filed bankruptcy and are in dire need of some cash.