Receivership is the process of an appointment by a court of a neutral person called a receiver to take custody of the property, business, rents and profits of an insolvent person or entity, or a party whose property is in dispute. A receiver may be authorized to make a sale or disposition of the property in receivership. On appointment of a receiver, in most jurisdictions, a bond conditioned on the receiver's faithful performance of the duties and obligations of the receivership must be furnished before the receiver is authorized to act.
Receivership is usually sought as a remedy of last resort, when workouts and other legal remedies are ineffective. Receiverships are usually expensive, since professional receivers get paid out of the value of the assets in the receivership.
Winsten Law Group has successfully obtained and defended against receivers in a wide variety of situations.
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