If Alan files for Chapter 7 bankruptcy, what happens to his listing agreement with seller Joy?

When Alan files for Chapter 7 bankruptcy, it generally leads to the termination of his listing agreement with seller Joy. This is because the bankruptcy court takes over the management of Alan's assets, including any business contracts he may have, such as listing agreements. Once bankruptcy is filed, the contractual obligations that Alan agreed to may be discharged or terminated as part of the bankruptcy process.

In the context of real estate, this means that Alan is no longer in a position to fulfill the terms of the listing agreement due to the legal and financial constraints imposed by the bankruptcy. Consequently, Joy would not be bound to the listing agreement, and it would be considered terminated.

The other possibilities, such as the agreement being voidable by Joy or suspended, do not apply in this situation. Additionally, stating that nothing happens and the agreement simply expires would not accurately reflect the impact of a bankruptcy filing on contractual agreements.