Question about commissions & overall situation

[njinco]

I need some advice please!!

I am about 40K in CC debt.

I am in the robbing peter to pay paul stage and need to file BK soon. Am getting ready to stop paying my cards but haven't been able to quite "let go" of them yet. Have not met with an attorney either.

I believe I qualify for Chapter 7, because I am below the median income. I am a teacher. HOWEVER, for the past three years, I have been a real estate agent. I have not sold a house in 6 months (coupled with a medical expense--this resulted in the debt).

But, I have two clients right now. They could close on a house any time in the next 60 days and I could get paid a large check ($3-5K).

What will happen to me if I file, then get paid? What happens if I file, the case closes, and then I make commissions? Can they take money from me after I have completed the bankruptcy?

I need that commission money--I am in the negative with my paycheck even if I stop paying all of my cards (I have to pay for daycare) and my teacher salary isn't going up enough to cover my shortage next year. I will have to pay daycare starting in August, and only can afford it if I sell a house.

Help!!

I am new here and am feeling really overwhelmed and scared. Any advice would be appreciated!

[morallyBR2]

Is the 5k check going to put you over the median income? I'm a commisioned employee as well.

[HHM]

That question about commissions will be fairly specific to your state law, (especially real estate commission). Bottom line, unless you can exempt it, the trustee can take. Normally, the wage exemption will apply to the commission (assuming your states exemption laws are not too outdated).

The crux of the issue is how your state treats the "right to commission" vis-a-vis your BK filing date. Generally, if your state considers the commission earned when it is "paid" (i.e. at closing), and closing happens after you file, then there is no problem whatsoever. But if your state considers the earned date retro-active to the signing of the listing/buyers agreement, or to when the buyers opened escrow, and those events happened before you filed, then you will have to fall back on your exemptions.

Unfortunately, yours is a question that can only be answered by a local attorney.

[njinco]

I'm still confused...I see how I have to figure out the Colorado (where I live) laws as they apply to this case. BTW, this may put me over the median income. However, I have nothing left in my paycheck after I get paid each month. I can also justify spending any commissions to pay student loans or taxes.

However, can they take anything after the BK is over?

When it's over, is it over?? If someone hit the lottery the day after BK is done, do they have to pay all of the creditors back??

[epiphany]

When it's over, is it over?? If someone hit the lottery the day after BK is done, do they have to pay all of the creditors back??

No, not if the BK is discharged and closed. You truly do get a fresh start.

ep