I signed a loan for $100,000 to spend a year at a big-name flight training academy. I graduated, and then was immediately hired as a professional pilot, but worked for slightly better than pennies. Three years later I'm in my first year as a CRJ F/O, also for pennies, and am absolutely financially destitute. I have no assests (my 11 year old car barely runs) and I can't make the minimum monthly payments on my Key Alternative Loan. They are larger than my entire monthly salary! I've tried for months, to no avail, to negotiate with the surly folks. Each time I nearly end up in tears. They keep tacking on "late fees" and trashing my credit, which was once squeaky clean. I never intended to default on this loan, and if they'd quit increasing the balance and work with me on a payment schedule that's actually feasible, I'd be happy to hold up my end of the agreement. Unfortunatly that's not the case.
So, I met with a bankruptcy attorney who thinks that a Chapter 7 would suit me well. I make so little now that I qualify, even since the laws got more stringent last fall. But he's not sure this particular loan is dischargable.
Has anyone had any experience with bankruptcy and the Key Alternative Loan? Have you tried to get it discharged? And if so, were you successful? Was there much litigation involved? Would you mind telling me of your exprience? My attorney would like to speak with any other attorneys who've been successful in getting this loan discharged and getting Key Bank off my back.
Thanks for your help,
RJGirl