Different contributor here. Please permit me to assist.
Section 507(a)(4) provides a priority for allowed creditor claims for: wages
, salaries and commissions...earned by an individual. This section would permit your "friend" to receive payment of up to $12,475, if earned within the 180 days prior to the date of filing of the petition
for bankruptcy. This priority merely means that if there are any assets in the bankruptcy estate, that your "friend" gets to cut to fourth in line, behind domestic relations support claims, bankruptcy court
administrative expenses "involuntary
bankruptcy 'gap' claims" (irrelevant for your purposes).
Regardless, you would have had to have made the sale before filing the bankruptcy petition. Once filed (assuming a Chapter 7, liquidation bankruptcy of your business subsidiary), your agreement with the "friend" can and will be rejected by the bankruptcy trustee
, because it has no value to the estate, and that would be the end of the matter, because the agreement is no longer enforceable against your subsidiary (though, it would give your "friend" a second priority administrative claim -- but, here again, second priority to recover nothing is still nothing -- because unless the deals are signed before the bankruptcy petition is filed, the deals are not part of the bankruptcy estate -- whereas, the agreement with your friend, is
part of the estate).
On a more practical level, all you have to do is to have your clients sign new agreements with you as an individual, and rescind the subsidiary agreements, and that would deprive your friend of any commission on those particular deals, since the subsidiary would no longer be involved in the transaction.
Your "friend" could claim a fraud, but if the clients testify that they wanted to deal with you directly, rather than through your subsidiary, and your refusal would have meant that the clients would have simply refused to complete any deals and allow the listing (or whatever) agreements to expire, then that would demonstrate that you were not trying to defraud your "friend," but rather that you were simply acquiescing to the client's requirements -- which as an agent, you are generally required to do.
Hope this helps.