Bankruptcy leads are obtained by gleaning the massive database of public bankruptcy records. Trying to do this on your own is a time-consuming procedure. If you don't want to devote time to gathering the leads, companies who specialize in providing this service will be happy to help you.
What Is a Bankruptcy Lead?
When individuals or businesses file for bankruptcy, it clears them of financial burdens they cannot pay. While bankruptcy offers those who are bankrupt a fresh start, the end result is that their credit options are much more limited.
Whether you are an individual or a business, a claim for bankruptcy is submitted through legal channels. It is filed by the courts and public records are available through a database known as bankruptcy leads. This database hold a wealth of information about those who have filed including:
- Name of company or individual
- Address
- Dates
- The amount of debt
- Income
- Results of the bankruptcy claim
Those Who Benefit from Bankruptcy Leads
Companies who can benefit from bankruptcy leads use the information to advertise. You many wonder who would target people who have filed for bankruptcy. Basically two types of businesses target this segment of the population. First are the businesses that look for those who filed for bankruptcy and were not granted their petition. In these cases, companies who help people manage their credit know who to contact based on the results of the bankruptcy claim found in the bankruptcy leads. Remember, this database provides the name, income and amount of debt owed. It removes any guess work, and debt consolidation companies know exactly what services to offer.
Bankruptcy leads can also benefit businesses and individuals who have successfully filed for bankruptcy. Just because much of their debt is erased does not mean they are totally out of the woods. Often they are in the market for a loan, but most lenders steer clear of bankrupt people until they restore their credit history. That makes getting a traditional loan harder and sends those who have claimed bankruptcy to look for an alternative resource from which to borrow money.
Businesses that Use This Information
A variety of businesses use the data found in the bankruptcy leads database to build their customer base and/or run their business.
Credit Report Firms
Credit report firms include bankruptcy data when calculating your credit score. As a result, obtaining a loan can be directly influenced by whether or not you have gone bankrupt.
Mortgage Companies
Mortgage companies use the information found in bankruptcy leads to determine whether or not an individual's credit and debt load make them a worthwhile candidate for a loan.
Car Dealers
Much like mortgage companies, car dealers use bankruptcy leads to figure out whether or not a potential client's credit is trustworthy enough to make a car payment.
Credit Card Companies
Credit card companies also calculate debt load and whether or not they merit extended credit through the use of a credit card account.
Types of Bankruptcy
Another factor companies take into consideration when using the bankruptcy lead database is what type of bankruptcy was filed for and/or granted. In all, there are six types of bankruptcy in the United States:
- Chapter 7
- Chapter 9
- Chapter 11
- Chapter 12
- Chapter 13
- Chapter 15
The most common of these are Chapter 11 for businesses and chapters 7 and 13 for individuals.
Companies Who Consolidate the Information for a Fee
If you own a company that can benefit from bankruptcy leads, it's important to note that gathering and categorizing the information can be time consuming. As a result, today there are companies that specialize in providing the information you're looking for. Since the type of bankruptcy filed will dictate what kinds of financial services a debtor will need, companies whose services distill this information will be able to sell lists applicable to services your business offers. Here are a few online resources for companies who provide bankruptcy leads as a service:
