Can I keep real estate commissions received in Florida after filing bankruptcy?

Whether or not you can keep real estate commissions received after you file bankruptcy depends on when you earned the commissions. Let’s say that a buyer and seller sign a contract in May. You file bankruptcy in June. You get your commission in July. In this case, the trustee will probably take the position that the commission was earned when the buyer and seller signed the contract. If the court agrees, then the commission received in July will be considered property of the bankruptcy estate. The trustee will take the money in excess of the property you claim exempt and distribute it to your unsecured creditors. Now let’s say you file bankruptcy in June and the contract is signed in July. In this case, you probably did not earn the commission before the bankruptcy was signed and you will probably be allowed to keep the money.  There are other factors that could effect when the money was earned, but the signing of the contract is the most important factor in determining when the money was earned.

If you are thinking about filing bankruptcy in Fort Myers, Cape Coral, Naples, or Lehigh Acres, call the Rothrock Law Firm at (239) 206-1948 for your free initial consultation.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s