Key Alternative Loan & Bankruptcy?
#91
Gets Weekends Off
Joined APC: Mar 2009
Posts: 124
re:
I never thought you could include student loans for bankruptcy. I guess it's an option if you want the easy way out. I seriously wouldn't condone it though.
I was once in a similar boat, although I had about 40k in loans, not 100k. I quit pursuing 'the dream' for a while, got a better paying/steady job doing something else, my wife and I ate top ramen for 2 years, and now I'll be Sallie Mae debt-free next spring.
RJ Girl: I suggest you quit the pilot job, move back in with mom and dad, get an admin job somewhere and work overtime and weekends for a couple of years. that is probably the best advice I could give anyone with any serious debt. You will ALWAYS have a chance to get back into the game at a later time with your credit still intact and your head held high that you didn't cop out when reality set in.
And for Pete's sake people, there are many inexpensive options out there for college (like online college for example) that you could save up for. There are also many good part 61 pay-as-you-go type of schools as well. Why pay the pilot mills? Don't owe your life to debtors. Put your life and future in YOUR hands and be patient with your training.
That last sentence wasn't meant for RJ girl, but for anyone presently investigating loan options.
peace.
I was once in a similar boat, although I had about 40k in loans, not 100k. I quit pursuing 'the dream' for a while, got a better paying/steady job doing something else, my wife and I ate top ramen for 2 years, and now I'll be Sallie Mae debt-free next spring.
RJ Girl: I suggest you quit the pilot job, move back in with mom and dad, get an admin job somewhere and work overtime and weekends for a couple of years. that is probably the best advice I could give anyone with any serious debt. You will ALWAYS have a chance to get back into the game at a later time with your credit still intact and your head held high that you didn't cop out when reality set in.
And for Pete's sake people, there are many inexpensive options out there for college (like online college for example) that you could save up for. There are also many good part 61 pay-as-you-go type of schools as well. Why pay the pilot mills? Don't owe your life to debtors. Put your life and future in YOUR hands and be patient with your training.
That last sentence wasn't meant for RJ girl, but for anyone presently investigating loan options.
peace.
#92
Gets Weekends Off
Joined APC: Jul 2008
Posts: 450
#94
Line Holder
Joined APC: Apr 2007
Position: Holds down the fort
Posts: 41
I never thought you could include student loans for bankruptcy. I guess it's an option if you want the easy way out. I seriously wouldn't condone it though.
I was once in a similar boat, although I had about 40k in loans, not 100k. I quit pursuing 'the dream' for a while, got a better paying/steady job doing something else, my wife and I ate top ramen for 2 years, and now I'll be Sallie Mae debt-free next spring.
RJ Girl: I suggest you quit the pilot job, move back in with mom and dad, get an admin job somewhere and work overtime and weekends for a couple of years. that is probably the best advice I could give anyone with any serious debt. You will ALWAYS have a chance to get back into the game at a later time with your credit still intact and your head held high that you didn't cop out when reality set in.
And for Pete's sake people, there are many inexpensive options out there for college (like online college for example) that you could save up for. There are also many good part 61 pay-as-you-go type of schools as well. Why pay the pilot mills? Don't owe your life to debtors. Put your life and future in YOUR hands and be patient with your training.
That last sentence wasn't meant for RJ girl, but for anyone presently investigating loan options.
peace.
I was once in a similar boat, although I had about 40k in loans, not 100k. I quit pursuing 'the dream' for a while, got a better paying/steady job doing something else, my wife and I ate top ramen for 2 years, and now I'll be Sallie Mae debt-free next spring.
RJ Girl: I suggest you quit the pilot job, move back in with mom and dad, get an admin job somewhere and work overtime and weekends for a couple of years. that is probably the best advice I could give anyone with any serious debt. You will ALWAYS have a chance to get back into the game at a later time with your credit still intact and your head held high that you didn't cop out when reality set in.
And for Pete's sake people, there are many inexpensive options out there for college (like online college for example) that you could save up for. There are also many good part 61 pay-as-you-go type of schools as well. Why pay the pilot mills? Don't owe your life to debtors. Put your life and future in YOUR hands and be patient with your training.
That last sentence wasn't meant for RJ girl, but for anyone presently investigating loan options.
peace.
#96
New Hire
Joined APC: Sep 2011
Posts: 2
These are NOT student loans. They are ALTERNATIVE loans and fully dischargeable under bankruptcy law regardless of what any lawyer tells you. We had a lawyer try to charge us 1500 dollars (seriously? We were filing bankruptcy for god's sake!) just to tell us that we couldn't discharge the key loans for the same misconception that everyone else has...they are student loans....just find a doc preparer and file. Forget lawyers!
#97
Gets Weekends Off
Joined APC: May 2009
Position: Left Seat
Posts: 369
A student pilot I know got over $100,000 in loans from Key bank to become a pilot. Pilots who start out today barely make a living. Furthermore, many were caught being laid off. The airline industry fell in hard economic times. That makes it impossible for a graduate to make payments, rent, car, gas, food. Key Bank did a settlement for about $25,000. The person did not have to file bankruptcy.The loan was not a government school loan. It falls under alternative loan.
#98
Gets Weekends Off
Joined APC: May 2009
Position: Left Seat
Posts: 369
he Insolvency Rule (IRS publication 908)
Most Debtors find that there is actually a big “loop hole” called the insolvency rule that allows them to NOT have to pay any taxes on the forgiven debt. According to the IRS, if you are “insolvent” at the time of the debt forgiveness, (which most consumers are if they are enrolled in a debt negotiation program) then you have no tax liability on the debt reduction up to the point that you are insolvent.
Let me put that in English for everyone. If your debts outweigh your assets then you are insolvent. So if you have a negative net worth then the IRS lets you slide and does not require you to pay taxes on the forgiven debt. As an example, if you where 100K upside down on your house, had 50K in credit card debt and only 40K in assets then you would be insolvent by 110K and you would not have to pay taxes on any of the settled credit card debt..
Most consumers find that if they are so far upside down financially that they have to look into a debt negotiation strategy, that they are also insolvent and therefore not liable for additional taxes on the amount of debt forgiven. As always though, check with a qualified Tax consultant about your specific situation, and ask if the Insolvency Rules would apply to you.
Most Debtors find that there is actually a big “loop hole” called the insolvency rule that allows them to NOT have to pay any taxes on the forgiven debt. According to the IRS, if you are “insolvent” at the time of the debt forgiveness, (which most consumers are if they are enrolled in a debt negotiation program) then you have no tax liability on the debt reduction up to the point that you are insolvent.
Let me put that in English for everyone. If your debts outweigh your assets then you are insolvent. So if you have a negative net worth then the IRS lets you slide and does not require you to pay taxes on the forgiven debt. As an example, if you where 100K upside down on your house, had 50K in credit card debt and only 40K in assets then you would be insolvent by 110K and you would not have to pay taxes on any of the settled credit card debt..
Most consumers find that if they are so far upside down financially that they have to look into a debt negotiation strategy, that they are also insolvent and therefore not liable for additional taxes on the amount of debt forgiven. As always though, check with a qualified Tax consultant about your specific situation, and ask if the Insolvency Rules would apply to you.
#99
New Hire
Joined APC: Jul 2015
Posts: 1
Alternative-loan-bankruptcy
By filing a bankruptcy, you may get rid of all your pending bills but there are various other problems too that arise after it. You cannot immediately or even after some time file for another loan after a bankruptcy case. Bankruptcy Lawyers can provide you the better way to get you through the positive and negative impact of filing a bankruptcy.
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