The post Realtor Commissions: Time The Bankruptcy, Not The Settlement, To Keep The Money appeared first on Baltimore Bankruptcy Lawyer.
]]>If the pending commissions are less than the statutorily allowed exemptions in the particular state then this rule is not a problem: The realtor will disclose the commissions payable, file an exemption for that amount and get to keep the money. Problems arise when commissions earned but not yet received are combined with the realtor’s other property and the sum exceeds the statutory allowance. In that case the realtor may have been better off waiting to file the bankruptcy case until after settlement, when the money can be strategically spent.
Realtors can’t game the bankruptcy system by timing their settlements. If the commissions are sizable enough a Chapter 13 reorganization may be preferable to a straight Chapter 7 liquidation. Either way, avoid the nasty surprise when the trustee demands a commission you’re counting on: do careful planning before pulling the trigger and filing a bankruptcy case.
The post Realtor Commissions: Time The Bankruptcy, Not The Settlement, To Keep The Money appeared first on Baltimore Bankruptcy Lawyer.
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