Bankruptcy of the Real Estate Broker or Seller
The bankruptcy of a real estate broker is often similar to the bankruptcy of a professional. The similarity is that the real value of the broker or the seller is not what he or she has, but who he is. And who one is cannot be lost to the bankruptcy estate.
For instance, a retail store can be sold as a going concern, but once Marianne Smith walks out of Marianne Smith Realty, Inc., there is no Marianne Smith Realty, Inc. for a bankruptcy trustee to sell. So, the business either passes through the bankruptcy or dissolves and is immediately replaced with another of the same or similar name.
The very significant problem with real estate brokers or real estate sellers is their listings. Their listings are assets that can be lost to the bankruptcy estate if not carefully prepared. The keeping or the losing of value from the sales of listed properties often depends on how much time the realtor has to prepare for the bankruptcy.
A real estate broker or seller can obtain a discharge and, depending on the case, begin again after filing.