Dear Swedepilot and the many other pilots who seem to be unable to help themselves. As a on/off professional contractor and businessman, with the best will in the world:
30 days late, shame on them
31 days late, shame on you
Anyone who remains in a job beyond 30 days after the last paycheck was due is an "enabler". They are facilitating an operation that is at best poor and at worst dangerous.
1. Plan your departure and plan B and consult with a lawyer if your location or circumstances require it.
2. Write a polite resignation letter that states CONCISELY your reasons for leaving and the next steps for recovering the debt. This might include liens, credit reporting and informing the authorities in their areas of operation (AOC holders require minimum financial reserves). This will help you clarify the issues and process you will follow.
3. Attempt a "last amicable collection". A short, but reasonable deadline may be used.
4. If this doesn't work, send in resignation. Do this after leaving if your location or circumstances require it.
5. Initiate the process described in your letter and plan B.:
Ask yourself this- if you are not living off your own savings and investments, why on earth should your family (I can't think of any other source of income) be subsidizing a terrible company or your folly?
The point here is you have to conduct yourself as a business and no solvent business can or should carry bad debt. If you do otherwise, it shows poor business skills and besides anything, a low level of self respect and possibly selfishness.
I know it is tough and you may be inexperienced, but you have to be professional.
Good luck.