Bankruptcy and contracts
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Join Date: Mar 2004
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Bankruptcy and contracts
I am CPL/IR holder with all the trimmings, MCC, Instructor ratings, etc. Basically done everything financially I can do to get that oh-so-elusive first airline job. Everything that is except pay for a type-rating. My debts now top 40 big ones. On credit cards and loans.
Basically I've gone past the swimming in debt stage and am rapidly moving towards the drowning stage.
I am considering declaring bankruptcy.
My question to anybody that may have a clue about these things is :
What impact could this have on my employability as an airline pilot ? I know its not a question on the application form but what about the reference checking side of things. The nightmare scenario that I want to avoid is getting an interview, passing the sim ride etc and then not getting the position if they were to find out that I was a bankruptee.
Is this likely or do they just do criminal checks and normal references from past employers ?
Does anybody have any information on bankruptcy clauses on their airline job contract. I hear that BACX have a clause. Can anybody confirm this ?
Declaring bankrupt is stressfull enough without thinking it could mess up my chance of finally getting the job I want.
Any ideas ?
Basically I've gone past the swimming in debt stage and am rapidly moving towards the drowning stage.
I am considering declaring bankruptcy.
My question to anybody that may have a clue about these things is :
What impact could this have on my employability as an airline pilot ? I know its not a question on the application form but what about the reference checking side of things. The nightmare scenario that I want to avoid is getting an interview, passing the sim ride etc and then not getting the position if they were to find out that I was a bankruptee.
Is this likely or do they just do criminal checks and normal references from past employers ?
Does anybody have any information on bankruptcy clauses on their airline job contract. I hear that BACX have a clause. Can anybody confirm this ?
Declaring bankrupt is stressfull enough without thinking it could mess up my chance of finally getting the job I want.
Any ideas ?
Nexialist
Join Date: Jul 2003
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Have you checked out the other downsides of bankruptcy?
If you own a house, you lose it. Maybe not now, but when you come to sell it, or at any time the trustees of the bankruptcy decide, they can take the cash. A lot of people in negative equity went bankrupt during the last crash, but their houses were not worth reposseing as the mortage lender had first call on the cash. Now that housing prices have reached very high levels, these houses are being repossesed.
The only thing you will be left with, officially are clothes, and "tools of the trade", this will not generally include your car, so you lose that.
seven years before a bank will consider ginving you a mortage.
You are not allowed debt over, I believe £50.
This may not arrise, but a relative is a personell manager for 1000 people and the firm pays a bonus to staff in March, bankrupts do not recieve this and it goes to the trustees of the bankruptcy, as it does not constitute normal salary.
If you own a house, you lose it. Maybe not now, but when you come to sell it, or at any time the trustees of the bankruptcy decide, they can take the cash. A lot of people in negative equity went bankrupt during the last crash, but their houses were not worth reposseing as the mortage lender had first call on the cash. Now that housing prices have reached very high levels, these houses are being repossesed.
The only thing you will be left with, officially are clothes, and "tools of the trade", this will not generally include your car, so you lose that.
seven years before a bank will consider ginving you a mortage.
You are not allowed debt over, I believe £50.
This may not arrise, but a relative is a personell manager for 1000 people and the firm pays a bonus to staff in March, bankrupts do not recieve this and it goes to the trustees of the bankruptcy, as it does not constitute normal salary.
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I have a friend that went through similar hardships recently and from what they tell me, most of the problems they had were with what they 'imagined' the consequences of such a situation might be - such that for a good while they watched the situation worsen because they felt 'trapped'. You needn't worry though, you don't actually have to declare yourself bankrupt at all. There are avenues available in finance law that exist to help people in such circumstances to avoid going that far. You can set up a "voluntary arrangement" through an insolvency solicitor, and offer to pay your creditors what you can actually afford. I suggest you look at www.insolvencyhelpline.co.uk and look into an "IVA". I think that website is Govt established, the Citizens Advice Beaureau would probably point you in the same direction.
Good luck and blue skies!
Clear_Prop
Good luck and blue skies!
Clear_Prop
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Hi
Please , Please do not worry, my brother was in a very similiar position to you a few months ago.
He went to seek advice from the courts, who advised him, to do this procedure after April 1st 2004,as the law is changing.
It will only one year instead of the present 3 years, you can have credit to the max value of £250.00, this is only for the year you are in bankrupcy, after the one year is up, you are given a certificate to say you are all clear of Debt, and restart your life.
The only downside is when you first go Bankrupt your bank account is frozen and then closed, but do not worry there are banks that help, they told him there was the halifax, woolwich and barclays who offer basic accounts.
In the future, well after the one year bankrpcy rule, when you apply for morgages etc, you do not have to disclose the fact you were once bankrupt, that is up to you to disclose.
The cost of all this £450.00 to make your self bankrupt.
If you want futher info please PM me
Mike
Please , Please do not worry, my brother was in a very similiar position to you a few months ago.
He went to seek advice from the courts, who advised him, to do this procedure after April 1st 2004,as the law is changing.
It will only one year instead of the present 3 years, you can have credit to the max value of £250.00, this is only for the year you are in bankrupcy, after the one year is up, you are given a certificate to say you are all clear of Debt, and restart your life.
The only downside is when you first go Bankrupt your bank account is frozen and then closed, but do not worry there are banks that help, they told him there was the halifax, woolwich and barclays who offer basic accounts.
In the future, well after the one year bankrpcy rule, when you apply for morgages etc, you do not have to disclose the fact you were once bankrupt, that is up to you to disclose.
The cost of all this £450.00 to make your self bankrupt.
If you want futher info please PM me
Mike
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I'm not sure I see the problem requiring bankruptcy here.
I'm in a similar situation to yourself, but with larger debts (by quite some way). Between my wife and I, we have a joint income of £1600 net each month and manage to get by, whilst continuing to make debt repayments of about half our monthly income.
I've never once considered bankruptcy as the easy way out. Maybe I've missed something that makes your situation different.
I'm in a similar situation to yourself, but with larger debts (by quite some way). Between my wife and I, we have a joint income of £1600 net each month and manage to get by, whilst continuing to make debt repayments of about half our monthly income.
I've never once considered bankruptcy as the easy way out. Maybe I've missed something that makes your situation different.
