Personal Bankruptcy

JJPilot

Well-Known Member
I need input... I have some questions about how the airlines look upon bankruptcy?
I know that it is often frowned upon and understandibly so.
I am of the understanding that they usually pull a credit report on potential employees. Is this something done before you even get to the interview process or is it a question they as during and interview knowing they can access the information later? If it is donw before, do you even get to the interview phase so you can explain the situation. OR, does that put you in that "other" stack of resumes?

TIA,
JJPilot
 

CK

Well-Known Member
So you mean airlines actually care about your credit? How the he11 does that affect your flying
 

aloft

New Member
Remember, most places aren't interested in hiring a mere "aircraft operator", but someone who can demonstrate sound decisionmaking ability and manage their aircraft, their crew, and their passengers.

If you can't avoid overextending yourself financially, how are you at fuel management? Same principle at work, believe it or not.
 

Derg

Cap, Roci
Staff member
I went thru a full background check while interviewing. Actually, I went thru another one after getting hired. And then another after the FAA mandated new background checks and then another one after 9/11 after the TSA mandated another.

But background checks include, without a doubt, credit history and things like recent bankruptcies are going to give a very bad impression because a lot of employers (including sweat shops like Wal Mart) correalate poor credit with lack of responsibility.

I really don't have the knowledge to say it's a 'deal killer' but I certainly wouldn't call it an easily "over lookable neutral" unless you can spin it in such a way to steer clear of being labeled irresponsible.
 

Derg

Cap, Roci
Staff member
[ QUOTE ]
So you mean airlines actually care about your credit? How the he11 does that affect your flying


[/ QUOTE ]

Hopefully not much. But if you've got poor credit over a series of late/missed payments, bankrupcies, charge-off's, etc, they think you may not show up on time to work, have problems that might consume you to the ability of poorly performing your job and the insurance company may balk at insuring you.

Kind of what the auto insurers are doing now.
 

MQAAord

Scheherazade
Staff member
The airlines do care about the info they find in their background checks. I had one when I was hired by Eagle, and another when I 'transferred' to AA. Even though it was the same parent company (Eagle and AA are both owned by AMR corp) Eagle and AA are completely separate airlines, and I had to undergo all the complete new-hire checks. The independent company that AA contracts with to do the background checks lost my information. Because of that I was delayed getting into class at AA by 4 weeks. 4 weeks doesn't sound like much, until your airline buys another airline (TWA) while you're in class and before you have a senority number. Because of the fu*k up with my background check I lost over 6000 senority numbers (all the TWA people got a date of 9 APR 01, and my date ended up being 19 APR 01). And....because of that loss of senority I'm on the street, and the people who were in the class I should have been aren't.
 

tonyw

Well-Known Member
[ QUOTE ]
I really don't have the knowledge to say it's a 'deal killer' but I certainly wouldn't call it an easily "over lookable neutral" unless you can spin it in such a way to steer clear of being labeled irresponsible.

[/ QUOTE ]

Kind of funny how they'll say, no, you can't work for us when you file for bankruptcy but they go ahead and file for chapter 11 or say they're thinking about it, and give themselves multimillion dollar bonuses, huh?

Seriously, though, to the original poster, I would say do not file for bankruptcy unless you have no other recourse and you are about to lose your house and car. You are far better off negotiating terms of payment with your creditors. They are willing to do that because they'd rather get something from you instead of seeing it evaporate if you file for bankruptcy.

You're not US Airways or United and you can't go on with business as usual when you file for bankruptcy.
 

blee256

Well-Known Member
Isnt kind of hypocritical for them to judge you based on filing for bankruptcy. Especially United, continental, TWA, and US airways?
 

naunga

New Member
Your credit along with everything else that has been said, is used to judge whether you're likely to steal from the company.

They just want to eliminate the possibility by determining what your financial status is. I mean if you're in debt up to your ears and your credit rating sucks well then they worry that you might lift their assets and hock them.

As with anything else in your background, I firmly believe that it's what you've done since your problems that matters to them.

So, if you were stupid with money, went Chapter 11, and got things straightened out and 5 years later you're in nowhere near the situation you were before. Then I personally would not consider this a big problem. On the other hand, you go chapter 11, and don't change your ways. Well then, I'm going to have concerns.

Every company, hell every manager is different in how they handle these things.

Oh and one other thing: It's a pain in the ass when you get a job, car, apartment, utilities etc. and then try to get a freakin' cell phone and you get turned down because your credit has been run too many times.

Naunga
 

Derg

Cap, Roci
Staff member
[ QUOTE ]
Isnt kind of hypocritical for them to judge you based on filing for bankruptcy. Especially United, continental, TWA, and US airways?

[/ QUOTE ]

Yeah, but remember there's a double standard. Corporate America can get away with certain things that would put Joe Six Pack in jail.
 

sorrygottarunway

Well-Known Member
what about the many trainees that find themselves in debt after paying for gobs of flight training? Certainly this "sacrifice of onesself for the good of aviation" cannot be frowned upon. Obviously, you're looking for the job to help stabilize you financially, pay your student bills ...
 

Derg

Cap, Roci
Staff member
[ QUOTE ]
what about the many trainees that find themselves in debt after paying for gobs of flight training? Certainly this "sacrifice of onesself for the good of aviation" cannot be frowned upon. Obviously, you're looking for the job to help stabilize you financially, pay your student bills ...

[/ QUOTE ]

An airline wants to know these things when they hire you:

a. Will you show up to work on time?
b. Will you finish training on time without any extra expenses?
c. Will you embarass us?
d. Will you disappear seamlessly in the seniority list, never to be heard from again?

Remember, the airlines are quickly becoming an industry not run by business leaders, but bean counters and they despise bankrupcies.
 

ready2fly

Well-Known Member
Being in debt and having a bad credit report are two different things entirely.

You can be up to your eyeballs in debt, but be current on you payments and have no problems.

I'm sure the airlines look at those of us in that situation and say "it's your choice to pay the $$ and get the training."
 

tonyw

Well-Known Member
I am. Tell me again that I'm not crazy?

I'm coughing all this money up to get trained to get a job where I'll make $12K a year, and then move to a job where I'll make $17K a year, and then hopefully get to a living wage only to be subject to furloughs.

Yeah, makes perfect sense.
 

JJPilot

Well-Known Member
that last post goes back to me... and before I start let me say I appreciate all of the responses.

He is my sob story:

I was one of the ATA guys and am actually one of the guys leading the ongoing fight. I currently have perfect credit. Yet I do have a mountain of debt, as mainy of you can attest to, after my training. I have a substantial debt to Key Bank for which I received about 10% worth in training. I am contemplating BK because I can not afford to pay back the $700/mo for the next 20 years for something I never received.
I took out another loan to continue my training and have no problem paying for it or any other loan or credit card I have. I plan, if I file, on signing reaffirmation agreements with all of my current creditors. I am not looking to "get away" with anything. Only be relieved of something I never received!
Again, I am keeping all of my current loans only the one from the school gone bad will I dispose of.

That being the situation and provided I re-establish my credit what are your responses, personal opinions, PROFESSIONAL OPINIONS?

thanks again!
 

tonyw

Well-Known Member
I think it would be a lot smarter to not pay Key and let that sit on your credit record than to declare bankruptcy. You will need to file something with the credit reporting agencies (all three of them) where you describe what happened to you. I believe you are allowed to put 100 words in your report.

I am also sure that they will be willing to work something out with you. It is better for them to get some money out of you than nothing at all.

Call them and see what they are willing to do in order to accomodate you before you do anything rash like declaring bankruptcy.

Unless, of course, you want to face a future that includes seven years of having a really hard time finding a job; getting credit card; putting a roof over your head; buying a car, and so on.
 

Derg

Cap, Roci
Staff member
I really don't know your situation, but I'd avoid bankruptcy at all costs.

Because that's going to affect your ability to get a credit card, find employment, perhaps rent an apartment, obtain automobile insurance and will follow you around like a lost puppy for a long time.

I mean, don't go out and rob a bank, but there are a lot more options, albeit very few convenient, that are available to you.
 
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