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Wage Exemption
Sam
Trustee will want all of the commissions. Comes from the
n re Fitzsimmons
725 F. 2d 1208 - Court of Appeals, 9th Circuit
Although it was a 541a6 case, it has lots of findings that all prepetition business earnings are property of the estate. Trustee will argue the commissions are business earnings, not wages. Fitzsimmons even says earnings from goodwill are property of the estate.
I won't file realtors with open escrows, unless there is a foreclosure, or other loss to avoid. Realtors always have slow periods and we try to time the filing.
D
Sent from my iPhone
> On Feb 3, 2017, at 11:54 AM, sam@southbaybk.com [cdcbaa] wrote:
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> I am filing a realtor's BK and she has a number of deals in escrow. I am considering claiming the 704 wage exemption on 75% of those commissions - but I am concerned that they will be treated as accounts receivable rather than wages and therefore 100% available for the trustee to administer. Anyone know the answer? Normally I would use the 703 wildcard but she has equity in her home I must protect.
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The post was migrated from Yahoo.
Obviously it only becomes an issue if the sales close. Then it is also a matter of prepetition versus postpetition efforts to determine what portion belongs to the bankruptcy estate. Unless The realtor is an employee receiving a W-2, I do not believe she is entitled to the 75% wage exemption. It would be a self employed receivable. Some real estate professionals have their own corporations and then pay themselves a salary. It does not sound like your realtor is on if them.
Mark Jessee
Sent from my iPhone
> On Feb 3, 2017, at 11:54 AM, sam@southbaybk.com [cdcbaa] wrote:
>
> I am filing a realtor's BK and she has a number of deals in escrow. I am considering claiming the 704 wage exemption on 75% of those commissions - but I am concerned that they will be treated as accounts receivable rather than wages and therefore 100% available for the trustee to administer. Anyone know the answer? Normally I would use the 703 wildcard but she has equity in her home I must protect.
>
>
The post was migrated from Yahoo.