Realtor in Bankruptcy

February 1st, 2010 by Questions

Hello, I want to know if you`ve had this type of situation and how it can be dealt with. I am a Real Estate Agent and I am considering bankruptcy. I wanted to know if lets say 5 months into it I all of a sudden start getting a bunch of deals and I know they are going to close while in bankruptcy causing me to be extended to 21 months could I and can a Trustee get me out of bankruptcy proceedings and onto a consumer proposal to pay off my debt?

Thank you in advance.

Posted from: Ontario

Questions

One Response to “Realtor in Bankruptcy”



, A licensed trustee said:

What you are asking is possible, although it is not very common. You ahve the right at any time during the bankruptcy process to file a proposal to your creditors. If the proposal is accepted then your bankruptcy is annulled (canceled).

Another person posted a similar question last night – only they wanted to know if they have to use the same trustee to file the proposal. The answer is no. This is one of “escape clauses” for individuals in the Bankruptcy Act that don’t want to keep dealig with the same trustee. You have the right to file a proposal with a different trustee if you want to.

Back to your question, about being 5 months in and switching – be careful. Rea; estate is a funny business. You might close 5 deals and then not have any for the next 6 months. If you are going to switch to a proposal you have to be able to make the payments, other wise it will fail and you’ll have to file for bankruptcy again (or pay off the debts in full).

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)