Bankruptcy marketing gathers information for lenders about those who have filed for bankruptcy. Bankruptcy is a process to relieve an individual or business of the legal responsibility for paying its creditors. Debtors who file for bankruptcy cannot file again for at least six years. Once their debts are discharged by the courts, they owe little or no debt, but their financial options are limited. Having a claim for bankruptcy on file prevents them from buying on credit for a long time.

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.