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Receivership And Its Benefits 

WHAT IS A COURT-APPOINTED RECEIVER?
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  • Disinterested appointed Court officer

  • Works to recover and to protect assets

  • Powers include:

    • Taking legal control of and protecting assets

    • Filing claims on behalf of an entity placed into a “receivership”

    • Distributing assets to, claimants or creditors through a court-approved plan.

    • Discretion to manage and liquidate the Receiverships assets, while accounting for all receipts and payments.

WHO CHOOSES THE RECEIVER?
  • A Common Pleas Court, following the filing of an application, or petition, with the Court.

  • The Receiver is not an employee of the Plaintiff or Defendant, and ultimately answers to the Judge.

    • A Receiver has a Fiduciary duty to the Court

  • Courts are most comfortable with receivers who have experience

    • They prefer a Receiver who may have specific knowledge or experience with certain skill sets

WHAT ARE THE BENEFITS OF RECEIVERSHIP?

  • An “equitable” action

  • Allows Judges to protect and preserve assets while parties are in legal disputes

  • Receivers are most commonly appointed over real estate

  • Receivers can also handle:

    • Businesses

    • Insurance Companies/Claims

    • Health and Safety Issues

    • Environmental Issues

    • Family Estates

    • Government Regulatory Matters

    • Enforcing Judgments

  • The act of petitioning a court for a Receiver may in itself encourage parties towards a settlement.