Here are steps you can take to establish your independence after financial abuse and help ensure long-term financial health.
What is a receiver?
A receiver is an appointed or authorized official who oversees the property of the debtor. This official either will manage the property for the purpose of enforcing a lien against it or for the general distribution of the item(s) to the debtor.
Though the term “receiver” has an important meaning in the financial and business context, its broader definitions include many other applications across the English lexicon, including:
- Something that receives.
- An apparatus or other device that receives waves or electric signals and interprets them in a way that makes sense to the five senses, such as a telephone receiver or television receiver.
- Someone who has been appointed to collect money due.
- Someone who receives stolen items for an illicit purpose.
- A container that receives or holds something else.
In a business context, a receiver takes control of a situation in which debts need to be collected, though they do not take the title to this asset or property. They receive a very broad scope of power to get the required debt payment, plus any associated fees and expenses.
Though receivers typically are tasked with the request to keep businesses in collection from dissolution. In practice, many businesses that reach the point of receivership are either liquidated or sold.
Businesses must be notified of their receivership through official documents, including letters and any other appropriate correspondence.
Typically, a company goes into receivership after a long period of overdue debt collection attempts. After a court case between a lender and company, a receiver is assigned to the firm fairly quickly.
If you own a company that goes into hard times and you fall behind on mortgage and other debt, your lender may take you to court over the lost money. During the court case, your account may go into receivership, which means that a receiver would be assigned to your case.
The receiver would come into your business and try to determine a way to repay the money to your lender. If they cannot reconcile the debt, your business likely will be sold or liquidated to cover the expenses.
Wondering what to do if you end up with a lien on your home? Learn more about getting a lien removed from your house.