What is Ann's status if Seller Sam files for bankruptcy before paying her commission?

If Seller Sam files for bankruptcy, Ann's status regarding her commission would be that of an unsecured creditor. When a seller has not yet paid a commission to their real estate agent before filing for bankruptcy, the agent, in this case, Ann, does not have any claim against specific collateral of the seller. Instead, she would have a claim for payment based on the services she provided.

In a bankruptcy scenario, secured creditors have specific rights to certain assets that secure their loans (like a mortgage on real estate), which means they are prioritized during the asset distribution process. However, since Ann’s commission is not backed by any specific asset but rather is a general obligation of Sam, she does not fall into the category of secured creditor.

Unsecured creditors, such as Ann, will typically have to wait in line with other unsecured creditors to be paid from any remaining funds after secured creditors have been satisfied. This status affects how much of her commission, if any, she may ultimately receive. Thus, identifying Ann as an unsecured creditor is accurate given the nature of her claim in the context of bankruptcy law.