Traditional financial institutions such as mortgage lenders, automobile dealerships and credit card companies usually require a credit history before extending credit. Those who have filed for bankruptcy are not considered a good risk. Therefore, these debtors need to connect with businesses who offer non-traditional forms of financial assistance. Bankruptcy marketing provides a venue for that connection to be formed.
Through bankruptcy marketing, non-traditional lenders can pinpoint potential customers for their services. Information on bankruptcy claims is a matter of public record and includes many data. In addition to the basics of name and address, the claim contains specific financial statistics such as income, amount of lien, type of bankruptcy, and status of the claim. This data can be compiled and sorted by any number of factors, but is most often categorized by filing status (filed, dismissed, discharged) and type of bankruptcy.
Bankruptcy can be filed under six different types called chapters. Chapter 7 and 13 are most common filing types for individuals. Businesses normally file under Chapter 11. Because the filings are different, the bankruptcy-marketing plan is different, too.
Chapter 7, for instance, involves liquidation of all assets to pay creditors. Chapter 13 involves retention of some assets and designation of future income to pay creditors, usually over a period of three to five years. Debt consolidation companies and credit reorganizers would more likely target those filing Chapter 13. Companies that provide methods to establish new credit would target their bankruptcy-marketing plan to those filing under Chapter 7.
The database of bankruptcy claims is nationwide and can contain over a million filings for just one calendar year. Gathering this information is time-consuming. Many businesses, therefore, hire marketing firms to provide leads for their bankruptcy marketing. Compilation of data can be customized for each lender, by filing status, bankruptcy type, income, discharge date or location. Customization also determines how often data is generated, and the extent of information included.
Companies who provide bankruptcy-marketing services do so by gathering data from courthouses across the United States, utilizing state of the art technology. Data is updated regularly, often daily, and is validated and verified for accuracy before being customized for the lenders. Adding verified current phone numbers is another service available to lenders, in the event that lender wants to incorporate telemarketing into its bankruptcy marketing strategy. The data from the public records can be merged with the lender’s own business information, too. Bottom line: Bankruptcy marketing, however customized, is a powerful tool for the non-traditional lender.
What is Bankrutpcy Marketing and can it help your business?
Article Source: http://EzineArticles.com/?expert=Tom_Houser
