Receiverships

Receiverships - Insolvent Debtors

In some instances, a debtor depletes his or her assets either by neglecting them or by willfully selling the them piece by piece for less than fair market value. In most states where the creditor obtains a judgment, and in some states before a lawsuit, the creditor may ask the court to appoint a receiver over the assets.

A receiver who is appointed by the court has the following duties:

Takes possession of the assets
Collects the rents
Uses the rents to maintain the property
Uses the surplus monies to pay off the creditors

Source: Legal Remedies for Business Creditors

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