Filling for Bankruptcy

[countbat]

A fellow flier has approached me with a question which I considered to be good. What are a pilot chances of finding a job if he/she has to declare bankruptcy? I told him that I will try to get some infos before giving him an answer. Any input/opinions regarding this issue appreciated. Thanks.

 

[bobbysamd]

Bankruptcy

I know of at least one pilot who has filed for bankruptcy. He got a job with the frax. It's a job I wish I could have had, and I have excellent credit!

Hope that gives your friend some encouragement.

 

[countbat]

Thank you. I will let him know. However, I don't see the reason why a bad credit (which could be for many different reasons) should affect somebody's ability to make an existance through his/her trade!? That should be considered personal because nobody likes to be bankrupt on this short life. And most important we live difficult times when everything is very fragile.

 

[HPaul3]

Tell your friend to tread very carefully. If he is considering bankruptcy, his credit is probably pretty bad already. But with all due respect to Bobby, the airlines seem to place a huge amount of importance on a good credit rating. Like obtaining a degree, it indicates a person's ability to follow through with their agreements. Added to this, it could be an indicator of a person's overall emotional picture....if a pilot is consumed by worries about finances or debts, this could take away from that pilot's capacity to handle stress, especially stress in the cockpit. Bankruptcy would certainly not be a positive move, in any case. Are there any other alternatives? It would be my last choice, personally.

Another factor: Maybe Bobby's friend had some time between the bankruptcy and his application to the fractional. Over time, following a bankruptcy, he must have demonstrated financial responsibility. Of course, this takes time. In the near term, bankruptcy could be an absolute disqualifier, but over time its effect could become mitigated.

Other thoughts?

 

[embdrvr]

What a bunch of horse$hit.
How many times have airlines filed for bankruptcy? I agree that a guy stressed out over finances may be distracted in the cockpit. But let's get real. People get stressed out over lots of things. Can an airline determine whether or not your spouse/significant other will soon be caught having an affair? What about a death in the family? How about the countless people forced into bankruptcy over medical bills or bad accountants? I've been pretty lucky. I have great credit and very little debt. I could see not hiring someone in the middle of a BK proceeding but if it's been a while and the person has made good financial decisions since then why should they not be hired?

 

[Gulfstream 200]

I say be careful too....
even corporate operators check everything these days (including credit)
NO, not to say it will disqualify you, but its another thing that can pile up and throw you out of contention!

I certainly dont know your friends delemia, but its plain rediculous when you hear of guys filing bancruptcy over 10-20K in bills or something....bottom line it will cost you more in the long run when you pay huge interest rates for everything you finance etc....nevermind the fact that the rest of US pay for the writeoffs your creditors take!! (Thanks!!!)

Seems like on 90% of these filing the only people who benefit are the lawyers who charge you 300$ to file it...

 

[bobbysamd]

Bankruptcy

Maybe Bobby's friend had some time between the bankruptsy and his application to the fractional. Over time, following a bankruptsy, he must have demonstrated financial responsibility. Of course, this takes time. In the near term, bankruptsy could be an absolute disqualifier, but over time its effect could become mitigated.

Yes, I believe it was several years. Maybe seven or more before he got his frax job. But he had airline interviews and even got on with one, only to be shown the door after a bogus IOE rip.

 

[HPaul3]

Bobby,

With all due respect, I think we can safely assume your friend's case to be an exception, do you agree? After all, in this market, anything can be a discriminator; your high-school GPA, a ticket you had in '96, the slightest FAA infraction.

My point is, I'd encourage the individual to seek other means of financial peace. The bankruptcy would be on his record for a long time, and would auger against his chances for being hired.

I just don't want anyone out there looking for a job to think that a bankruptcy would help them with their job search.

EMB, you may think it's horse$hit, but I don't think you're being realistic about the situation. As you alluded to in your post, the pilot in question would face many years of having to prove himself financially before the effects of bankruptcy would diminish. Unfortunately, none of us makes the rules about this situation. The HR offices at the employers do, and I'm sure if you took a poll, you'd not find one office that would view bankruptcy in a positive way, at least not in the near term. Just my two cents as to the possible ramifications.

 

[bobbysamd]

My point is, I'd encourage the individual to seek other means of financial peace. The bankruptsy would be on his record for a long time, and would auger against his chances for being hired.

I just don't want anyone out there looking for a job to think that a bankruptsy would help them with their job search.

No way can it help. I agree 100%, and also with the various discriminators you mentioned. Anything negative, or perceived as a negative by the brilliant minds in HR, can be a detriment.

I think that it depends. A recent bankruptcy would be extremely harmful. A bankruptcy long ago may be less harmful, especially if it was a business bankruptcy and not a personal bankruptcy. Of course, getting an interview and the chance to explain it in person will help.

 

[countbat]

Let me get this straight. We have people with no jobs for about 2 years by now. Outside aviation is not too rose either. So if a pilot wants to find a job in a different field the answer will be NO for lack of experience in that field plus due to the state of economy where nobody can complain of employees shortage. After 2 years with no job, with bills, mortgage, children to feed should I assume an a$%hole HR guy would say that pilot is not viable for his company.
It looks to me like an Enron syndrom. Catch 22. The employee is at fault for the managers mistakes. The managers go further with money and better jobs and the employee can not find a job because he used to work for a company such as Enron.
I know life is not fair but to say it sucks is kind of too much.
It's like blaming a cancer sick pacient for being sick.