Filling for Bankruptcy

[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

 

[Timebuilder]

Let's continue the list of possibilities.

Suppose you are an instructor who works as an independent contractor (as all of the instructors at your school are) and your job goes to h*** after September 11th. Because you are not an employee, you are eligible for ZIP money from unemployment. All of the bills continue, and no money comes in. You find a job in May. You sell your seven year old car and start driving a 14 year old car. You still don't have the money to service your debt and still be able to afford ramen noodles. Your prospects for an increase in income are over a YEAR away.

Then what do you do?

I'll tell you what you do. You take experienced legal advice, just like Trump, United, US Air, etc. The only difference is that these are ficticious legal persons, and you are not.

And then, you go on with your life.

 

[BobbyB]

No Doubt, Jedi

Jedi, I was commenting on two things. One, avoid bankruptcy if at all possible. Secondly, others above were lamenting the fact that the airlines can file bankruptcy and then discriminate against potential employees if they have filed. My point is that the difference between me and an airline is that all I do is fly planes, they generate billions in revenue and thousands of jobs for turds like me, even in bankruptcy. I can come up with a ton of ways to go bankrupt. You are right, I, like most of us are a few months without a job away from bankruptcy.