Working in aviation, you have several planes that you use to transport people and items across the country. You have been making payments on work done on them, and you still owe money on a few of the planes you purchased.
If you fall behind on the payments for a plane, it is possible that it could be foreclosed on an repossessed. While many in the airline industry don’t think about repossession as a possibility, it could be if the payments for the plane are not paid on time. Similarly, if there is a mechanic’s lien and the mechanic is ready to enforce it, you could find your planes at risk.
How does foreclosure work in the aircraft industry?
Foreclosure in the aircraft industry works similarly to others. Payments are expected to be paid on time, and when they are not, the plane or other collateral may be at risk of being foreclosed on and repossessed by a lender.
If you are at risk of going into default, one of the best things you can do is to reach out to the lender and to try to work out an arrangement to help you catch up on payments. Generally speaking, lenders usually prefer to work out agreements to continue payments rather than going through the foreclosure process, since a foreclosure is time intensive and costly.
What do you need to do if you miss a payment?
Whether you’re a large corporation or startup, you need to take action if you’ve missed a payment on one of your assets. The foreclosure timeline begins as soon as a payment is missed.
Usually, you’ll have a grace period during which you can catch up the payments. If you cannot, then your account will go into default.
At that point, you may receive notifications about the amount due. You may be fined or need to pay fees to reinstate a payment plan.
Finally, if you do not pay, a foreclosure lawsuit or notice of default may be delivered to you. If that happens, then you could have a plane repossessed from your company.
Aviation firms and companies can go bankruptcy and lose their assets. If you’re struggling, it’s valuable to learn more about your company’s legal options.