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Bankrupcty Direct Mail Defined

Posted by Brian Berg Google+


Many direct mail marketers will use a mailing list of Bankrupt individuals to market to.  The reason why a bankruptcy mailing list is so popular is because when someone files for bankruptcy, they are relieved of a mountain of debt, yet they still have the habit of spending beyond their means. 


A bankruptcy mailing list is also popular because these people do have a serious need to purchase certain items that they were unable to afford prior to filing for bankruptcy.  Buying a car is one of the most common needs filled immediately after a bankruptcy is approved.


Below are the various types of Bankruptcy definitions you’ll need to know in order the correct mailing list for your direct mail campaign.


Chapter 7: A bankruptcy action, which provides for straight liquidation of a debtor’s financial liabilities.

Chapter 9: A bankruptcy action filed when the debtor is a municipality.

Chapter 11: A bankruptcy action generally filed by businesses (but may be filed by consumers) which gives the debtor a chance to reorganize financial affairs in the hopes that the reorganization will allow the debtor to repay the debts.

Chapter 12: A bankruptcy action used when family farm owners become insolvent.

Chapter 13:  Also known as a “wage earner” plan.  This is a bankruptcy action that provides for partial or full repayment of the debtor’s liabilities. Bankruptcy: A legal process under federal law intended to help the debtor begin a fresh financial start unhampered by credit pressures and discouragement resulting from pre-existing debts.  It is also intended to ensure fairness and equality among creditors in determining repayment amounts. Discharge:


The release of a debtor from the obligation to repay debts, which are deemed to be dischargeable under bankruptcy law.  At the conclusion of a successful bankruptcy proceeding, a debtor is usually granted a discharge of liability for his debts, which were approved under the bankruptcy action. Dismissal: The equivalent of a cancellation. 


When dismissed, the debtor is not released from his obligation to repay his debts.  Creditors may resume actions to collect upon delinquent debts. Petition: A document that is filed by the debtor or the debtor’s attorney which begins the bankruptcy action. Pro Se: Latin term meaning “on one’s own behalf”.  In legal action, where one represents oneself without the aid of legal counsel.