As a moderator I am not all sure you should be promoting that advice as "logically" it might definetaly
Not be the correct thing to do. As a father of a son who wants to engage in Commercial pilot training, I would advocate the patent stupidity of bankruptcy as an option unless it was completely unavoidable and even then only after every other avenue had been exhausted. In reality there are no easy shortcuts to the profession, and this applies particularly to the financial aspects, as so many people here know only too well.
In fact most lenders are constrained by the financial services act, and since last year have tightened up their lending criteria. Lending is now much more geared up to the applicants repayment ability. In truth unsecured lending of 50 -60k has never been an easy proposition despite anecdotal "evidence" to the contrary.
You will now find that banks who previously promoted "career lending" schemes for pilots or anybody else, either no longer do so, or are much more circumspect in their lending. Commercial lenders are not in any way obliged to lend you money, and there is a fairly sophisticated database of credit history and performance that all lenders subscribe to. Any history of bankruptcy is likely to make future lending difficult and well beyond the rates offered to the "prime" market.
The following is an extract on the problems of bankruptcy :
Credit and Other Problems
Nearly all finance companies, banks and many employers ask whether a person is or has been a Bankrupt.
Records of a bankruptcy will also often by kept by credit agencies for up to six years. For this reason difficulties with obtaining credit or getting work in certain professions can persist for a number of years, even after discharge.
Bankruptcy Restrictions Orders
If a person has acted unlawfully or recklessly in accumulating their bankruptcy debts, they can be subjected to a Bankruptcy Restriction Order which extends the restrictions on credit and business activities for up to 15 years.
Bankruptcy Offences
Certain types of conduct prior to or during bankruptcy give rise to special offences which can be punished by fines, imprisonment or both. These mostly arise from concealing property, misleading the Official Receiver or Trustee in their enquiries, or simply failing to cooperate with either of them without very good cause.
Antecedent Transactions
Although not treated as offences, the Courts have special powers to overturn certain types of transaction that occurred prior to bankruptcy. Essentially, these are concerned with ensuring that Creditors are not unfairly treated. Examples include gifts made to the Bankrupt’s family that caused the insolvency or made it worse (called “Transactions at Undervalue”) or repayments made to some creditors in order to make them better off than others (called “Preferences”). Time limits apply to such transactions which vary according to whether the recipient is an associate of the Bankrupt or a family member.
So, why go Bankrupt?
We would never encourage anyone to go bankrupt without considering other options like an Individual Voluntary Arrangement (IVA) first. Bankruptcy can never be a pleasant experience and
it can involve very real penalties for homeowners, business people, or people in
special professions.