A receivership is a remedy that is authorized by a court’s equity powers. In certain circumstances the court may appoint a Receiver to execute a judgment or to protect property which is subject to a dispute.To properly protect the asset, a court appointed Receiver must be knowledgeable in both law and business operation. Upon appointment, the Receiver becomes an officer of the court to receive, care for, administer and/or dispose of property under the orders of the court. The Receiver’s powers and responsibilities are defined by the order of appointment, and the court appointed Receiver is an officer of the court and not an agent of the company or creditor.

There are many instances where a court might appoint a Receiver, but they generally fall within one of the following categories:

• Enforcement of a Court Judgment

• Interim Corporate Management

• Real Property Dispute (Rents, Issues & Profits)

A Receiver is appointed at a hearing before the court at which time an order is entered. Most courts expect that litigants will have attempted other means for enforcement prior to requesting the appointment of a Receiver. Should the appointment of a Receiver be necessary, it is accomplished by filing a motion or a complaint under one of the prescribed statutory provisions.

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800-808-8559