QUESTION
What do I do with earnings during Bankruptcy process?
Asked on May 21st, 2012 on Bankruptcy - Florida
More details to this question:
I am a Realtor. I know that if I have any pending contracts when I file bankruptcy that my commissions from those will go to my trustee. But what happens to any contracts I write after I file? May I keep my commissions from any sale I make after filing? Or do I have to wait until I am discharged to be able to keep any commissions from a sale. I was told that I could sell a house (write a contract) the day after I file and that I would be able to keep all the commission from that sale even though I have not been discharged yet. Is that true?
2 ANSWERS
Burton J. Green
I am assuming that you are in chapter 7 and 13. In chapter 7 your earnings after you file for bankruptcy are not included in the bankruptcy. Those commissions are yours.
Answered on Jul 10th, 2012 at 1:51 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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This question revolves around what I call the "two entity" theory. Your bankruptcy estate on the moment you file is comprised of everything you own and everything you owe. It is a separate and distinct entity which has a life of its own. What comes into your possession after that is called post petition and it is separate and distinct from the entity that filed for bankruptcy. So, what you have been told is correct. You can read about chapter 7 and what you need to know in a pamphlet at my website. You may want to do an internet search for the "means test calculator" and take it to find out if you can qualify to file a chapter 7. You also need to consult with an approved consumer credit counselling agency prior to filing and get a certificate from them.
Answered on Jul 05th, 2012 at 4:25 PM