Spirt filed for Chapter 11 again
09-08-2025 | 09:50 AM
#141
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Joined: Sep 2014
Posts: 682
Likes: 29
I'm pulling for you guys and really hoping a chapter 7 doesn't happen but I've got one piece of advice from someone who has been through this kind of thing before. Open a separate checking account for your paycheck and sweep any payments immediately into another account not associated with your direct deposit. I was in similar position in 2008 and they were able to claw back two paychecks when the doors closed. Ended up getting some of the money from the bankruptcy court years later but not a a fun experience. Labor isn't at the back of the bankruptcy trough but it's nowhere near the front either, especially with a company as encumbered as NK.
Be ready to get some hate for your post though.
09-08-2025 | 10:03 AM
#142
Line holder
Joined: Nov 2013
Posts: 4,167
Likes: 226
From: Aircraft & Seat: old & hard
I'm pulling for you guys and really hoping a chapter 7 doesn't happen but I've got one piece of advice from someone who has been through this kind of thing before. Open a separate checking account for your paycheck and sweep any payments immediately into another account not associated with your direct deposit. I was in similar position in 2008 and they were able to claw back two paychecks when the doors closed. Ended up getting some of the money from the bankruptcy court years later but not a a fun experience. Labor isn't at the back of the bankruptcy trough but it's nowhere near the front either, especially with a company as encumbered as NK.
09-08-2025 | 10:17 AM
#143
Line Holder
Joined: Sep 2021
Posts: 439
Likes: 30
I'm pulling for you guys and really hoping a chapter 7 doesn't happen but I've got one piece of advice from someone who has been through this kind of thing before. Open a separate checking account for your paycheck and sweep any payments immediately into another account not associated with your direct deposit. I was in similar position in 2008 and they were able to claw back two paychecks when the doors closed. Ended up getting some of the money from the bankruptcy court years later but not a a fun experience. Labor isn't at the back of the bankruptcy trough but it's nowhere near the front either, especially with a company as encumbered as NK.
09-08-2025 | 10:40 AM
#144
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Joined: Sep 2020
Posts: 1,560
Likes: 338
ACH transactions can be reversed. Also wages are priority claims, but are limited in how much get paid and how long it takes. Don't expect that last paycheck to show up anytime soon, and there might not be enough after secured creditors are paid. The rest would be prorated, but high income earners like pilots would probably get a substantially lower final paycheck, if any, and a few months late.
09-08-2025 | 10:45 AM
#145
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Joined: Mar 2015
Posts: 300
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Not a lawyer, I think you would have to dive into the legalese of the direct deposit agreement for an answer. I know they can rescind funding made in error. In our case the company did not have the money in their account to cover payroll but made the payments anyway. I guess it would be considered the electronic equivalent of a bounced check. Not only could they not make payroll, they had also quit paying the company portion of our healthcare premiums without telling anyone. There were people who had used medical services that were getting bills for thousands of dollars from hospitals because insurance wouldn't cover the cost due to not getting paid. Granted this was a smaller non-publicly traded company, I imagine a liquidation at Spirit would be more orderly. That being said I still think you guys find a way to pull through. Keep your heads up but you gotta protect your interests.
09-08-2025 | 10:50 AM
#146
Line Holder
Joined: Sep 2020
Posts: 1,560
Likes: 338
Not a lawyer, I think you would have to dive into the legalese of the direct deposit agreement for an answer. I know they can rescind funding made in error. In our case the company did not have the money in their account to cover payroll but made the payments anyway. I guess it would be considered the electronic equivalent of a bounced check. Not only could they not make payroll, they had also quit paying the company portion of our healthcare premiums without telling anyone. There were people who had used medical services that were getting bills for thousands of dollars from hospitals because insurance wouldn't cover the cost due to not getting paid. Granted this was a smaller non-publicly traded company, I imagine a liquidation at Spirit would be more orderly. That being said I still think you guys find a way to pull through. Keep your heads up but you gotta protect your interests.
09-08-2025 | 12:07 PM
#147
At your mom's house
Joined: Jun 2008
Posts: 3,665
Likes: 447
From: cpt 737
Not a lawyer, I think you would have to dive into the legalese of the direct deposit agreement for an answer. I know they can rescind funding made in error. In our case the company did not have the money in their account to cover payroll but made the payments anyway. I guess it would be considered the electronic equivalent of a bounced check. Not only could they not make payroll, they had also quit paying the company portion of our healthcare premiums without telling anyone. There were people who had used medical services that were getting bills for thousands of dollars from hospitals because insurance wouldn't cover the cost due to not getting paid. Granted this was a smaller non-publicly traded company, I imagine a liquidation at Spirit would be more orderly. That being said I still think you guys find a way to pull through. Keep your heads up but you gotta protect your interests.
09-08-2025 | 12:35 PM
#148
On Reserve
Joined: Jun 2025
Posts: 100
Likes: 51
From: 757 FO
I'm pulling for you guys and really hoping a chapter 7 doesn't happen but I've got one piece of advice from someone who has been through this kind of thing before. Open a separate checking account for your paycheck and sweep any payments immediately into another account not associated with your direct deposit. I was in similar position in 2008 and they were able to claw back two paychecks when the doors closed. Ended up getting some of the money from the bankruptcy court years later but not a a fun experience. Labor isn't at the back of the bankruptcy trough but it's nowhere near the front either, especially with a company as encumbered as NK.
09-08-2025 | 12:53 PM
#149
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Joined: Sep 2021
Posts: 439
Likes: 30
So basically at any time Spirit could reverse all my direct deposits and take back all the money they ever paid to me......just because reasons?
09-08-2025 | 01:02 PM
#150
Line Holder
Joined: Jun 2018
Posts: 566
Likes: 26
From: Earth
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