Real Estate Agent's Commission Income And Ch 7 ?
I have a friend who is a real estate agent in NV. She is looking at filing for Ch 7 bankruptcy. She has consulted with a few attorneys and all are apparently telling her the same thing... that any commissions she makes 30 days after she files, and for up to 6 months after she files, can be seized 100 % ! I have been doing a lot of bankruptcy research in the last year+ but this is the first time I've heard of this twist, and its sounds wrong. Her husband is on disability, so his income is exempt, but it also means that her income is the only one they depend on to live. I realize that R.E. Agent's don't make a regular salary like most of us, but how can this possibly be correct ? These lawyers are all saying something about 'work in progress' and the Trustees can take ALL of her income to pay her creditors. Please, if there's any accuracy to this, I'd REALLY like to know what the specifics are and where I'd find it in Title 11 or the Bankruptcy Rules.
Answer:
It's not quite correct. Any commissions that are earned but unpaid, that is, the settlement hasn't occurred yet, are considered property of the bankruptcy estate. If they can't be exempted, they would need to be paid to the Trustee. That's a good question, I'm in a similar situation. Do you have to report your income for the next 6 months to the trustee? "I don't know". Since your in NV do you recommed a any great BK lawyers?
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