Paying for ATP or any other flight school

tiredofshoveling said:
Hi all,

I haven't found much on how to pay for flight school on this website, (probably just haven't found it). I know that student loans are generally available if you have good credit which I do. I was thinking of taking out some kind of home equity loan if possible. I'll be borrowing the entire costs, 55k so I thought, hey if I don't make it I'd declare bankruptcy and go back to my old career. I don't anticipate this happening but its best to be prepared for something like this as there is always the possibility that things wont work out. I'd have to iron out the specifics, maybe speak with an attorney before I make any moves. I'm pretty sure that you cant get rid of student debt if you declare bankruptcy thus the home equity route. Maybe I could set up some kind of training LLC and borrow the money in the LLC's name, just in case. I hope this doesn't sound unethical, but I don't want to be shackled with endless debt with no way of paying it off. This is essentially a business risk imo and should be treated as such as any corporation would. If anyone has any ideas please let me know. I think I have about 55k in equity in my house at the moment, and about 30k in the bank.

thanks

TOS
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What you are planning to do is illegal and unethical. I happen to be a business banker in the DFW area for a huge bank and to borrow funds against your LLC or any business entity will require both industry specific experience and collateral to get the kind of loan you want. And I don't think you have neither. Needless to say, attorneys won't give you any kinda of advise to this effect. I know a few attorneys, so I know this well. Finally, you need to truly seek an experienced career/financial advisor to discuss your career goals. If you are getting into the flying business to fail, then think twice before you spend $55K. If you want to fly as a hobby, maybe get your PPL and see what you are capable of doing. But don't spend $55k and never get a return on your invest. Remember most people today in our great country don't even have $55K in retirement or savings, so don't just make $55k seem like small change. I work in banking and see this all of the time. Those who get into the flying business (pilots) do it because they love to fly and are willing to do everything to get where they need to be. Honestly, think really seriously before you spend $55K if flying is not what you want to do.

Good luck!
 
I want to post a follow up thought...

How does bankruptcy affect obtaining a pilot job (let's say after CFI) in the regionals, cargo and corporate sectors?
 
1. We used a HELOC to pay for ATP in 2006. We ended up selling the house and now have no flight training debt. It worked well for us.

2. I know more than one pilot with a prior bankruptcy and it hasn't effected them at all. I can't remember for sure, but I don't recall signing a credit report consent form during the regional interview stage. I'm not sure they look at your credit. If one has a good history post bankruptcy, it will probably negate it.

K
 
Me I sell Bolexes on the corner, only 5400 of them to go!!
However, everyone is not the same, you might be into medical experiments, or maybe you have a great idea for three steps to toned abs, sell a dvd, get rich. . . whatever works:)
 
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