Flight School Bankruptcy

birof4

New Member
Just happened today..students with $$$$$$ loans with Key Bank, what happens now? Do they get the money back or can they sue the owner? The school was taking in money right up to the end, is that legal?
 

Derg

Cap, Roci
Staff member
Geez, pretty swanky website!

I don't think their rates on the PA 28 or the C 172 is what bankrputed them. Dang, are airplanes THAT expensive these days?
 

birof4

New Member
Yeah for the last 2 years prices have been going up and up at the end the CFI rate was $52 ph, of course they never saw much of that..the airplanes were SPs..but expensive nontheless, don't pay much attention to the website, it's way way out of date, no one updated it..what about the students can they out of the loans with Key Bank?
 

aloft

New Member
I think you'll find answers to many of your questions (as well as a sympathetic ear or two--and possibly even a lawyer to take your case) over at www.screwedbyata.org. I think it's a negative on getting out of the loans, unfortunately.
 

Eagle

New Member
[ QUOTE ]
Just happened today..students with $$$$$$ loans with Key Bank, what happens now? Do they get the money back or can they sue the owner? The school was taking in money right up to the end, is that legal?

[/ QUOTE ]

it all depends, there are more than one type of bankruptcies.

Did the company just shut down and strand everyone or are they continuing to operate with a plan to emerge as a stronger company?
 

M_Roland

New Member
[ QUOTE ]
sounds like it is the same deal as ATA.

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Not really. Not if this flight school actually filed for bankruptcy. ATA just closed the doors and took off with the money. They didn't file for bankruptcy.

The students had to get together, take up enough money (over $30,000), find a lawyer who knew what to do, and force ATA into involuntary Federal bankruptcy. I doubt the ATA owners had any idea this could possibly happen--the odds against it are so great.
 

Lucky

New Member
birof4,
Sounds like you went there? How many students are stuck there? Do you know if they were a 141 or even an acredited school?
 
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