My Flight School in Scottsdale, AZ Went BANKRUPT
08-30-2006, 03:17 PM
#1
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My Flight School in Scottsdale, AZ Went BANKRUPT
There may be other posters out there affected by this. Last November the owner of CRM Airline Training Center www.crmatc.com filed personal Ch 7 bankruptcy and placed all the students and employees as debtors. I was one of them. In other words, the remaining balance of $21000 on my flight account was gone.
Needless to say, I haven't been able to finish my training and am now considering bankruptcy(over $100,000). KeyBank and Great Lakes are the companies I have to deal with. Can I discharge the loan because of the schools bankruptcy? My only other option is Ch 13 to reduce the loan amt. ANY OTHER IDEAS???
Needless to say, I haven't been able to finish my training and am now considering bankruptcy(over $100,000). KeyBank and Great Lakes are the companies I have to deal with. Can I discharge the loan because of the schools bankruptcy? My only other option is Ch 13 to reduce the loan amt. ANY OTHER IDEAS???
Last edited by bigstupidjerk; 08-30-2006 at 04:47 PM. Reason: adding for info
09-01-2006, 06:28 PM
#2
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Position: Sitting down and facing front. Why would you want to know that?
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09-01-2006, 10:45 PM
#3
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Joined APC: Jun 2006
Posts: 49
Under the new bankruptcy law you will be able to file but the company could challenge the ruling. If it was an alternative loan and no an education loan you will be able to do this. Contact a bankruptcy attorney they will be able to help you out more. Sorry to hear that it happened to a few buddies that I have
09-05-2006, 02:34 PM
#6
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Not an option.
Paying down a $100,000 loan at $900+/mo is not an option. Not when the school should be held liable for filing BK and Keybank should be held liable for putting all the money in their hands to use as they wish.
They admitted to me that they used the money to fund the schools operations as they pleased and had depleted my account in excess of my training costs. THAT is why the owner filed BK and stayed at the school as a "consultant" and for checkrides.
My family shouldn't be punished for that mans lack of morality. We're already going to suffer as it is.
They admitted to me that they used the money to fund the schools operations as they pleased and had depleted my account in excess of my training costs. THAT is why the owner filed BK and stayed at the school as a "consultant" and for checkrides.
My family shouldn't be punished for that mans lack of morality. We're already going to suffer as it is.
10-13-2006, 10:17 AM
#9
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Posts: 26
I will recommend everyone thinking about going to flight school to read this thread. Incidents like this must have been the motivation for the change in Key Bank loan policy a few years ago. As of Summer '04, (a change from the previous two years for me) Loans were being handled and managed by the student, not the flight school. Last I heard the alternative loan was being dicontinued. When was your loan first issued?
10-13-2006, 12:33 PM
#10
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Posts: 3,971
This does not help the original poster but touching on what Shaun said, here is what I do.
Obviously training is expensive and it can be a pain to pay after every flight so what I do is factor my bi-weekly expenses on flight training and I write a check every two weeks towards training and after every two weeks I adjust that amount depending on how much I have spent whether that be over or under my original estimate.
If the school goes under, worst case scenario it will be the day I write them a check and I will be down for two weeks pay and +/- $1500.00 is alot better than 20G
I feel for your situation but I would not reccomend bankruptcy especially since your parents were cosigners. It is time to buckle down and make something happen with those payments.
Obviously training is expensive and it can be a pain to pay after every flight so what I do is factor my bi-weekly expenses on flight training and I write a check every two weeks towards training and after every two weeks I adjust that amount depending on how much I have spent whether that be over or under my original estimate.
If the school goes under, worst case scenario it will be the day I write them a check and I will be down for two weeks pay and +/- $1500.00 is alot better than 20G
I feel for your situation but I would not reccomend bankruptcy especially since your parents were cosigners. It is time to buckle down and make something happen with those payments.
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