New Brunswick Business Daily

What happens if a real estate brokerage company files for bankruptcy while holding while holding commission?

What happens if a real estate brokerage company files for bankruptcy while holding the earned commissions of an independent contractor. I've heard that I become an unsecured creditor but I've also heard there may be law mandating that the IC's portion of these funds be placed in a trust account.

Public Comments

1. Are you a selling or a buying realtor? If it is an earned commission on a sale that they owe you... It should have been placed in the broker's trust account and a may be breach of the brokers fiduciary duty if the commission is not paid. The conversion of trust funds cannot be discharged in by a US federal bankruptcy.
2. yes @Attorney is right.. trust funds cannot be discharged in US. You can ask to expert and get solved your at same time http://www.diy4law.com/ask-our-expert.php