Creditors eager to offer new chance

By HANK EZELL

The Atlanta Journal-Constitution

September 18, 2005

ATLANTA — Adam and Blaklee Jones-Kelley listed $864,000 in unsecured debts, mainly from a business failure, when they filed for bankruptcy on June 22.

It was a Chapter 7 request, meaning they asked the U.S. Bankruptcy Court in Atlanta to wipe out virtually all of their debt.

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This is what happened next: They were deluged with offers of new credit cards and car financing.

"It shocked me, all the offers we got," said Adam Jones-Kelley.

"It was almost like it was automatic; they get the information, and all these notices are in the mail right now."

They got about 15 solicitations in the first two weeks after their official meeting with creditors. The clamor has tapered off, though two more pitches came in last week.

The credit card offers had limits of $500 to $2,500.

"Some of them actually said, 'Now that you've filed for bankruptcy, you deserve a fresh start,' " he recalled.

The offers may seem goofy or even irresponsible. But they are no surprise to bankruptcy specialists. "The creditors are going to know two things about you," said attorney Carol Colliersmith. "You don't have any debts anymore, and you can't file for bankruptcy again for eight years."

For recently bankrupt people, such offers are a perilous temptation. A friend of the Jones-Kelleys got three offers to finance auto loans after she filed for bankruptcy a year ago. She now owns three new cars and all the debt that goes with them.

The Jones-Kelleys played it safe. They have one credit card now, with a $300 limit.

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