What Kind of Cases Are Appropriate For the Appointment of a Receiver?

Over the past several decades, the types of cases in which the appointment of a receiver may be appropriate has expanded greatly. Some of these types of cases include:

1. Rent, Issues and Profits (Real Estate): This may involve property held by a business or individual, eviction or foreclosure proceedings, or divorce proceedings involving the dispute of ownership of a residence or income property.

2. Preserving disputed property that is at risk of injury or being lost

3. Judgment enforcement

4. Cases involving a dissolved corporation or business

5. Disposing of or preserving property that is the subject of a judgment

6. Cases involving disputed property awaiting appeal

7. Taking possession of a corporation in danger of becoming or has already become insolvent

8. Enforcement of court orders in Family Law or civil action cases; this may include collecting child support or alimony, selling jointly owned property, or selling other property and business assets to benefit an estate, as well as halting an IRS assets seizure.

9. In the case of fraudulent transfer or purchase transactions, the implicated assets may be possessed and controlled temporarily by a receiver.

10. The sale of intellectual property rights.

11. Some white-collar felony fraud cases involving $100,000 or more may call for a criminal receivership.

Duties of a receiver include taking possession of any records or mail that may be related to a current case, as well as audits and discovery of evidence.  All funds are controlled by the receiver, who is legally required to protect them and only disperse portions as required to maintain a business or real property.

Other than monetary funds, the types of assets which may be controlled by a receiver are endless.  Some of these may include domestic animals, farmland and operations, retail stores, restaurants and bars, liquor licenses, professional practices (such as a medical office), residential and commercial investment properties, and even accounts receivable.

A receiver may be appointed for something as common as divorce proceedings, or even criminal fraud cases.  The assets held by the parties involved in the case that may be in question are controlled and managed by a court-appointed receiver until the court rules on the matters at hand.  Even after a ruling, a receivership may continue to be associated with the case to either oversee that requirements by the court are adhered to, or perform any disbursements or liquidations alone.