Receiver is an individual, a bank, or a trust company appointed by a court to hold, manage, or dispose of property. A receiver may also be called a trustee or an assignee. The most common reason for appointing a receiver is bankruptcy (see Bankruptcy ). If a person or company does not have enough assets to cover all debts, the court may name a receiver to protect the people or companies to whom the debts are owed. A receiver also may manage property involved in a lawsuit, such as a mortgage foreclosure.
Receivers are officers of the court. They are limited in their authority and actions by the decree appointing them, and by the laws of the state and the nation. Ordinarily, receivers must have no direct interest in the business or estate they handle. They also must administer the estate in the best interests of all parties concerned. In some states, receivers may be appointed to take charge of the property of a husband who fails to support his wife or his children. After receivers have finished their work, they are discharged by the court.
The court pays receivers for their services. The fees of receivers and the expenses of the receivership must be paid before any other obligations. The court requires receivers to furnish bond.
