Most often a tool employed by creditors in legal situations, a receivership is when a receiver, or professional appointed by the state or federal court, administers and/or liquidates the estate of a troubled business party. When compared to bankruptcy, one might think of a receiver as like a trustee.
There are two kinds of receiverships: the first is when a receiver is appointed as an oversight or to run a business; the second is when they’re appointed over a specific property or set of assets. Typically, the type of receivership used depends on the situation, including goals and what each party needs.
A common example of when a receivership is implemented is when a business owner is mishandling a company and the secured creditors and other parties involved attempt to get the company back on track through a court-appointed receivership.
With deep industry knowledge and extensive support, Bernstein-Burkley, P.C., has experience helping clients through receiverships, with attorneys who have navigated through the intricacies of the process while also publishing papers on the topic.
Contact our team at Bernstein-Burkley today at 412-456-8100 to see how we can assist you in Litigation services.