Filling for Bankruptcy

[fluther]

Whether we agree or not the fact is that any employer worth working for will check your credit. Lets face it, if a speeding ticket can be a problem, dropping the bag on your creditors will probably not look to appealing to a potential employer, especially in this pilot rich environment.

 

[quigs]

I can't believe that we have gotten to the point of letting employers pull credit checks. I still can't believe we let insurance companies get away with it. When does it stop? I can understand if you are applying for a CEO position or if you are applying for a very important high security job, but come on, a 18k a year position? I interviewed for a regional carrier that wanted permission to pull our credit, however they said that wouldn't happen just a process they had to go through. I think some companies need to step up to the big moral picture themselves. the same companies that emphasis honesty, hard work, and a clean record, need to look into the mirror. I do not think it is anybody's business what my credit looks like, with the exception of someone who is willing to lend me money, or have me be in charge of their money. As far as someones mental health when they are filing bankruptcy, that depends on the person and I would think they would be greatly relieved instead of stressed out to the gill. Yes, credit is a privelage and shows responsibility, but also take a look at the creditors and their predatory lending. They are just as bad as someone who doesn't pay their bills, worse in my view, they lead to it. Also get a little taste of a collection agency and see how ethical things are on that side of the fence. I could go on and on. If a company wants to not hire me because of my credit, then so be it.

 

[B190Captain]

Unfortunately, it's what these HR pencil pushers want for a candidate in most cases.

Good Credit status is hard to achieve these days but bankruptcy should be treated as a last resort. I am sure they will take under consideration the fact that one may be on the street laid off from another flying job and trying to pay your commitments has become a nightmare. I am sure that alot of people out there without a job are watching their credit slipping into the abyss. But don't jump the gun.

Debt consolidation through some of these non-profit organizations may be able to help. It does reflect on your credit since you involved a third party but not nearly as bad as a bankruptcy.

Good Luck!!

 

[80/20]

I would try very hard to avoid Bankruptcy if I could.
It's a red flag. We can discuss how fair and correct that judgement is but many interview board members does not like it at all.

 

[JediNein]

Howdy!

http://www.debthelp.com (A how to get out of the smoking crater site -- send emails to my addy for the free content stuff)
http://www.budhibbs.com (Free book on debt/collection agencies/bankruptcy, plus author is willing to answer questions via email)

A few letters sent certified mail will stop the phone from ringing.
If the phone continues to ring ANY lawyer will happily take the sure-fire win as the collection agencies are violating the Fair Credit and Collection Act.

Let your friend know that the phone calls can stop. Any harassment, ESPECIALLY at work, is illegal and can be stopped. It doesn't take a lawyer to stop these jerks either.

Once the *** phone stops ringing, your friend might have a clear head and be able to think better.

A personal bankruptcy is not a fresh start. It allows any company to deny employment, if the job pays over $20,000 a year (almost all pilot jobs).
The information is on the credit report for 10 plus years. A chapter 11 is outright stupid, 12+ years PLUS having to pay the creditors anyway. Just walking away from unsecured debts is only reported for 7 years.
Interest rates for any other extensions of credit will be much higher for decades. It's debt prison.
Bankruptcy won't stop a home in foreclosure. There are ways to sell the home without a foreclosure or the wait.
CCS is almost a bankruptcy and does more harm than good.

Good luck!
Jedi Nein

 

[Timebuilder]

A friend working on his private happens to be a leading banckruptcy attorney.

You may find that several calls to debt counselling services, which used to be rather altruistic and helpful, may reveal that the low or elimiminated interest rates touted on TV are not avialable to most people, and a large payment (10% per account) may be required to begin a "payment plan". If you can't keep up with the mounting bills, then how are you going to come up with a 10% down payment for a plan? You aren't.

The worst thing is to do nothing, letting you bad credit fester as though you didn't care, when you only feared banckruptcy.

While the Trumps and the airlines can declare, you and I will suffer discrimination, legally.

Which is worse: a banckruptcy, or bad credit for the next 25 years? You decide.

 

[roughneck]

Bankruptcy will be look at as a sign of irresponsiblility. You may get a job, but if their are two pilots with identical qualifications and it comes to light that the other has filed before then it is not hard to decide who will probably get the job.

 

[BobbyB]

I agree with most of the above. Bankruptcy is NOT the way to go if you can help it. Cut up the credit cards, talk to creditors yourself and try to work something out. The important point for most of us is that we want airline jobs. I'd love to go into an interview with the other guy having fewer ratings and hours, and if he'd declared bankruptcy, then all the better for me. It is just one more way to stand out (or stick out). As far as saying that it is a double standard for airlines and the like to be able to do it, and not us; let it go. If our sorry bankrupt individual asses had the ability to generate billions of dollars in cash flow each year, and had billions in assets (even in bankruptcy), then you have something to work with. We as individuals don't have a lot to go on when our only value is flying airplanes or flipping burgers. I am also a bit skeptical of "predatory" lending. There are laws (truth in lending act, for one) that requires lenders to disclose in plain terms the amount that is being charged in both % and in $. If you are stupid enough to borrow more than you can pay, oh well. Of course there are exceptions, and there are predators and they should be held accountable to the max of the law. Most of our grandparents actaully saved up money before they bought something and it worked out pretty well, even in the depression. Probably not a bad idea.

 

[B190Captain]

I remember one time I was in a bind with a CC company and I asked them if I could work something out with them temporarily. They said NO.

When I paid that card off recently I snipped the card and closed the account. When the rep asked me why I wanted to close I told them that same story.

 

[JediNein]

Just a gentle reminder, BobbyB

Sh!t happens. Someone who has very carefully planned their budget, has payments that are only 20% of their net income, has 15% of their income going to savings, and a tiny total amount of debt can be financially ruined in just a year.

Lose a job. Not really that big of a deal, except savings run out in 3 months, and unemployment makes that debt 40% of take-home income. Be 2 hours late on a payment because the credit card company is First USA and it takes a class-action lawsuit to stop their intentional holding of payments until after the deadline, and the nice 6.99% rate goes to 25.99% overnight. 80% of take-home just to make the minimum payment.

Lose a job because of disability. Medical bills start piling up. Pay the car payment or pay for surgery? Make the house payment or make the chemo payment. Get a second opinion because you missed the credit card payment. Disability insurance really doesn't cover that much.

How many weeks are any of us from complete financial ruin if the work/unemployment checks stop?

Fly SAFE!
Jedi Nein