Question: I had a bankruptcy chapter 11 about 4 years ago and is been discharged. I like to know if it’s possible to get financing for an aircraft. Can you please let me know when you get a chance?
Answer: Bankruptcies are very difficult to recover from, as they should be, otherwise everyone would go that route when things get tough. That said, there are different types of bankruptcy (7 vs. 11 vs. 13) and each is viewed differently by potential lenders. For ease of understanding, what’s least offensive to the lender is if your debts were eventually repaid. If not, the next best scenario is that very few were forgiven. Additionally, a lender will also look at whether your case has been finalized in bankruptcy court and whether you’ve been able to reestablish some credit since the bankruptcy was finalized. Finally, the more time since bankruptcy finalization (along with reestablished credit) the better. Every case of bankruptcy is going to be a one-off decision by the lenders though, don’t expect you’ll automatically be able to get a loan because you’ve reestablished credit and it’s been some time since finalizing the bankruptcy. There are some lenders that won’t ever be able to get comfortable. However, there are some that can…it just depends on how you’ve handled your financials and their level of risk aversion.
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