If you're thinking about Bankruptcy...

[AA717driver]

I was a couple months away from being in this situation last year. I lucked out and got a corporate job making 50% of my pay as a AA captain AND somehow we didn't qualify for financing when we tried to build our "captain's house" a few years ago when I was making big bucks and thought I had job security. Although it cause a lot of heartburn at the time, not qualifying for financing save us from serious financial trouble.

I know only a handful of people who were at TWA who were able to save up a year's pay for emergency purposes. You can't live in an apartment and drive a Yugo forever. Life goes on and you make the decision to give your family some of the same things your neighbors have (who, btw, sure as he!! aren't sitting on a year's pay either!) and take the chance that you will eventually make it up.

I used the year I had at "real" captain's pay at AA to pay off a lot of the accumulated debt so when I began my slide to the street, we were pretty well debt free. I WAS INCREDIBLY LUCKY. The numbers of people who are caught with debt and a 50% paycut or worse are huge in this business.

We have been forced to take huge pay cuts AND now we are not given the tools to salvage our finances. TC

 

[Mtnjam]

Other alternatives

For somebody who doesn't come from Money, they have to carve their own way through life and make things happen. For me Bankruptcy was a thought, but now I'm in the Debt Consolidation mode. I have two credit cards and a Phat Sallie Mae loan I have to pay off which was used for my flight rating's along with V.A. benefits, "I didn't waste money on Gulfstream".
I am recently divorced which makes it harder and I hung in there as a CFI to build the time in order to get my current job which I just finished training at "with no pay" and am still waiting for my first paycheck which I only hope is on the 16th of this month. I used Credit cards to help make ends meet, and don't live out of my means at ALL. I don't know why NEFLIER is so brutal about Bankruptcy. Alot of pilots have had hardship and I'm one of them. I don't own realestate and if anyone knows who will finance a first year FO with about 40k of Debt on a first year F.O. salary I would appreciate info. During training I saw lots of guys rolling up in their Lexus, Porche's and Nissan Extera's, who went out to eat every day. I don't care about them, don't know how they do it "but have an idea" Some folks aeren't fortunate enough to have somebody backing them and this seems to be a major issue in this line of work. Everyone looks at each other and says "how did you get here, what did you do before this." I worked hard, continue to work hard and plan to take responsibility for my debt but everyone on here seems to be so judgemental which is not their place. A 30k truck and 200k home is not too extravagent nowadays, granted cheaper vehicles can be purchased. Just my input though. If anyone has done or knows about debt consolidation loans I would appreciate info because I need to get one done soon because I am way behind on my bills and have tapped out my borrowing money resources from friends. There is no way I can afford to make all my bill payments on a monthly basis and I live a simple life. I am just happy to have a job at a Regional flying nice equipment. I hear many people complain about their Regional job and can't understand why. Lear 70 I don't understand why you were furloughed from Pinnacle. They are hiring 64 Pilots a month through August now and Upgrades are a continuous thing. Maybe you were let go years ago before the big growth spirt? Debt Consolidation info would be appreciated from anyone who knows anything, Thanx

 

[Lear70]

Debt consolidation without equity in a house at interest rates and terms that will save you any money are pretty hard to find. A "past-life" banker posted earlier, maybe he can help more.

I (along with about 90 other new-hires) were furloughed right after 9/11. It was a typical "knee-jerk" reaction by the company but it only took them four months or so to realize they couldn't staff the airline without those people and Northwest didn't want to park any of the CRJ's. Unfortunately they didn't let everyone know they'd be back so soon, we all received letters in the mail that said, "How soon can you be back to work?"

During that time period a LOT of guys went through some tough periods, especially guys (like me) who had only been on line for 15-30 days before 9/11.

 

[kingaira90]

I highly recommend not doing this. Companies like Ameri Debt and Consurmer Credit Counseling Service can help you get better interest rates and lower payments, but at a price. When you use one of these companies and then try to get a Conventional, FHA, or VA loan, you will be treated the same as if you had filed Chapter 13 Bankruptcy. Mortgage underwriting guidelines for traditional mortgages will consider your credit trashed, so don't do it. Real debt management help is found only in changing your behavior.

we talked to a mortgage broker a couple of months before we finished the CCCS program. He said according to Fannie Mae guidelines (they basically set the guidelines for the rest of the industry), at a year out of credit counseling we become viable again for a conventional mortgage. Of course as long as we keep our credit clean in that year. -kingaira90

 

[kingaira90]

Debt consolidation without equity in a house at interest rates and terms that will save you any money are pretty hard to find. A "past-life" banker posted earlier, maybe he can help more.

Debt consolidation on student loans is easy and can save lots o money (atleast on payments). We did it and dropped our average rate by a point, and the rate is now fixed.

I agree on Debt consolidation on credit cards without equity in a house.

 

[labbats]

There should be a stipulation in the law that stops these credit card companies from setting up booths on college campuses and sending pre-approved cards to people with no credit history. It's hard to feel sorry for a predatory business IMO.

That said, I wholly agree with the law. If you can pay it off, you should.