Income after Filing

[scs30885]

I Live Madeira Beach in the Central District of Florida

I am a realtor and have been accumulating an unsumountable amount of debt due to the horrible real estate market. Because of this, I have no choice but to file now. I have been preparing for my BK 7 filing for many months now and am scheduled to file tomorrow or on Tuesday.

My problem is that I finally might have a closing on one of my deals and get paid a commission check of around $9000. I do not know when it will come, but I think it will be sooner then later.

Is this commision check in danger of being taken by the trustee if I get it AFTER I file? If it's at risk, I am thinking of holding off and not depositing it? Maybe wait 3 months?

Any of you had this dilema and how did you handle it?

[mtbc]

My guess is that you might actually luck out here. If the closing hasn't happened before you file, presumably the check isn't due to you when you file, so it's not an asset of the bankruptcy estate. (I believe that it is an asset if you are due it or hold it even undeposited.) If this commission check doesn't indicate an expectable general pattern evincing that you much underestimated your Schedule I income then it may make no consequential difference to your Schedule J DMI. I can imagine that it might invite scrutiny and argument, given that at your 341 the trustee may ask what's happened since filing, in a way that makes you have to mention this to them, but I can certainly imagine that a reasonable attorney may still be able to have it not be a problem. I am not an attorney myself, though, so this is not advice, I am just thinking aloud in case I provide you, or anyone else responding, any useful thoughts. I'd be interested to hear from others why my guess would be wrong!

[scs30885]

Thank you mtbc, the fast response is much appreciated!

Do you think the trustee might object that the contract on the property was established prior to filing and it does not matter that the commission was earned after the filing?

[spanky]

My understanding is that you don't need to be optimistic in stating future income. You shouldn't list that you bought a lottery ticket and you're feeling lucky. (Holding a lottery ticket that you know is a winner is another matter of course.)

Anyway, I'd imagine you had several potential deals pending. Potential deals are not income until they close.

[momofthree]

This is something that you REALLY need to discuss with your attorney BEFORE you file on Tuesday.

[scs30885]

My attorney is the type woman that anything I tell her: she says "put it on the petition". I can't go over scenarios with her because she simply wants to protect herself.

Anyone have any suggestions or past experiences they share?

[mtbc]

Well, your question is, presumably, if the trustee knows about it (because it's on the petition or whatever), do you get to keep the money, or does it mess anything up? That's a perfectly reasonable question to ask your attorney that isn't answered by "just put it on the petition". Especially as the timing of your filing could well benefit from astute legal advice.

Presumably, until the closing actually happens, you can't be sure it ever will happen and earn you some commission.