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    #1

    Question Regarding Earnings

    Hello all, I am so glad I've found this forum, it is a wealth of information. I am in the early stages of Ch 7 and have a question for you all. I've met with an attorney but have not signed a contract and therefore have not filed yet. We are in South Carolina. I am unemployed (lost job in July) and my wife is a Real Estate Agent.
    My question involves her earnings, she is a commissioned 1099 employee. She got 2 homes under contract this week and my attorney said that he could exempt 5000.00 of the earnings but any more than that the Trustee would take. So my question is, if she gets any homes under contract after we have filed, will the trustee take those earnings as well? I've searched these forums but couldn't find anything dealing with commissions for RE Agents. Anyone have any experience?

    Thanks!
    I am not an attorney and my advice is generally worthless.
    Tags: None
    #2
    Hi Redfish, welcome to the forum. I am not able to answer your question, but there are posters here who work in the real estate field, and sooner or later one of them will come along with an opinion. Just remember that different states and bk districts may handle the same situation a little differently from each other.
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

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      #3
      Money that wasn't somehow already due to you or coming to you when you file isn't part of the bankruptcy estate. However, at the 341 the trustee may be interested in your financial circumstances since filing -- after all, Schedule J can look forward to expectations -- and if it looks like you will have enough disposable income to fund a chapter 13, even if you didn't before filing, they may argue for conversion and you may thus have to argue that this present income is coming at an atypically high/lucky rate.

      I should add a caveat that there are special rules for things like inheritances and whatever, that come after filing, but not for normal earned income that you're describing.
      Last edited by mtbc; 01-29-2010, 12:37 PM. Reason: add caveat

      Comment

        #4
        Your state / local customs may vary but this is what I was told: If the transaction hasn't closed yet then the money isn't counted. After all, how many real estate transactions don't close? Many. Especially in this real estate market.

        Ask your attorney how it will be treated if they fail to close?
        Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
        I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

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