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BANKRUPTCY: Anticipated Real Estate Commission And Disclosure By Agent Filing Bankruptcy

All assets must be disclosed by anyone filing a a bankruptcy petition. This applies to a potential real estate commission that a real estate agent anticipates receiving if the agent has a contract to sell a home, even if there are no offers.

The anticipated commission is not an account receivable, which generally refers to a debt owed for work already performed. Such a potential commission should be disclosed on Schedule B, Item 21, "Other contingent and unliquidated claims of every nature, including tax refunds, counterclaims of the debtor, and rights to set off claims. Give an estimated value of each." Explain "under contract for sale of real estate".

Estimate the value on the high end and find an exemption. Also, list on Schedule G, executory contracts. Also answer questions 18-24 on Statement of Financial Affairs. Filing a bankruptcy requires thorough review of all debt, income and assets. Do not file a bankruptcy, especially where there are challenges such as a business, without retaining experienced bankruptcy counsel in your jurisdiction to guide you through the complexities of bankruptcy law and procedure.

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This guide is offered for informational purposes only. It is not offered as, and does not constitute, legal advice. Laws vary widely from state to state. You should rely only on the advice given to you during a personal consultation by a local attorney who is thoroughly familiar with state laws and the area of practice in which your concern lies.

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