I was a flight attendant for American Airlines for 16 years and took an early out package they offered in 1996 which gave me airline passes for life, health benefits for life, and an annuity which I was to begin receiving and am now receiving at age 55 for life. I turned 55 the day that American declared bankruptcy.I just received a form from the US bankruptcy court saying that I am possibly to file a claim but do not file a claim if I hold an equity security interest in any of the debtors. I may need to see an attorney to look over this unless you happen to know if my annuity is still going to be intact under the law.
Country relating to Question: United States
State (if USA): California
nothing...just received this letter from American Airlines in the mail tonight
Hi, I’m a moderator for this topic and I wonder whether you’re still waiting for an answer. If you are, please let me know and I will do my best to find a professional to assist you right away. If not, feel free to let me know and I will cancel this question for you. Thank you!
Yes........I am still needing an answer Thank You
Sometimes, finding the right Expert can take a little longer than expected and we thank you greatly for your understanding. We’ll be in touch again shortly.
Hi Pamela:You should go ahead and file a proof of claim. The big question then is going to be what amount to place on the proof of claim. I assume your annuity is a certain amount per month for life. If so, you can find the present value of that by googling life annuity calculator and you can find a website (there are many) where you can type in your age, the amount you receive per month and it will give you the value of an annuity that pays you that for life. Your annuity may well be at risk in the bankruptcy, and depending upon the Plan that ends up being confirmed, you could stand to lose part or even all of it. I have looked up some information on the AMR Bankruptcy and it looks like the APFA (which I assume is your union) is actively participating in the case and has attorneys representing the union. You might contact them for pointers on completing and filing your proof of claim. But again, based no what you've told me, I believe you would have an unsecured proof of claim for the value of your annuity, plus your health care for life. You might add to your monthly annuity what your current healthcare might cost you to buy the insurance policy yourself, and plug that into the online annuity calculator to find a present value. Good luck,John A. Flynn
12 Years Experience in Bankruptcy - Mid-South Super Lawyer
I hope my answer above was helpful, please let me know if there's something I didn't address.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).