- By Fed Receiver
- Published 06/13/2012
- Writing for the Web
A receivership entails the usage of a receiver, often appointed by a state court, to collect, manage or liquidate assets of a business. Similar to receivership, a bankruptcy also involves the liquidation of a debtor’s assets. However, there are some differences between bankruptcy and receivership.
First, a bankruptcy is an actual cause of action, while a receivership appointment is a remedy. Assigned to administer the assets of a failing company in an equity receivership, a receiver is an expert in receivership management and is usually focused on the goal of maintaining the operations of a business while enabling it to pay or settle with its creditors promptly. In some cases, a receiver must liquidate all assets to pay creditors. Unlike with a bankruptcy when discharge of debts usually takes place after filing, once receivership is completed, a business may not, in some cases, be granted discharge from more collection of debts. Thus, a receiver who leaves un-liquidated assets is potentially exposing a company to risk by enabling creditors to pursue collection activities on their collateral.
Federal Securities and Exchange Commission (SEC) receiverships have become commonplace. Also known as Government Enforcement receivership cases, this process of liquidating assets requires an SEC receiver who is appointed by a US federal district court judge in an action filed by the SEC. This often occurs when there is suspicion that corpor
ate entities, individuals, or both have engaged in prohibited behavior involving securities statutes. The SEC uses this type of receivership as a remedy and as part of its civil enforcement action to identify and seek to terminate such conduct, which often involves prime bank schemes, fraud by broker dealers, and other types of common investment frauds including Ponzi-like schemes.
Receivership administration is a complex process, and many factors are called into play by a court to determine if a Los Angeles real estate receiver is necessary. If you are seeking receivership management services or other solutions involving real estate or a business, the professional team of James H. Donell and Stephen J. Donell are ready to assist.
James and Stephen Donell have more than 25 years of experience in providing receivership management. Staffed with a comprehensive and knowledgeable team, Fed Receiver, Inc. has the resources to professionally and reliably administer receivership estates. Upon court appointment, a FedReceiver receiver and staff immediately obtain and file all required bonds, locate and seize all assets belonging to the estate and will provide a continuous flow of accurate and comprehensive reports to all interested parties. These reports include inventories, all necessary court filings, operating reports, investor correspondence and notices to applicable taxing and licensing entities or those required by the appointing order.
For more information visit FedReciever.com