ReceivershipReceivership law is a useful and important remedy for creditors trying to get paid or protecting the assets of the debtor from other creditors or wrongdoers. Whether using receivership as a collection tool or serving as a receiver to marshall assets, we have the experience necessary to protect our clients.
Frequently Asked Questions
How can I stay informed about the progress of the receivers progress?
Many times a receiver will establish a web site for communicating with creditors if the receivership is large enough to justify the expense. Also, the receiver may file inventories and reports with the court from time to time to advise the court about the progress of the case. You can hire an attorney to help you, or contact the receiver directly.
How do I get paid?
The receiver’s responsibility is to collect and liquidate the assets and make a distribution to creditors. Under Indiana law, there is a priority in payments or who gets paid first. Generally, the cost of administration get paid first, then secured creditors, federal and state taxes, unsecured creditors or investors, then equity owners.
Should I send the receiver my paperwork so that my claim is known?
Often the Receiver will establish procedures for filing claims with the court. Sometimes, the receiver will provide a form filing your claim with the court.
What if the Receiver will not return my calls or communicate with me?
Contact an attorney or call the court where the Receiver was appointed and tell them you are having problems. The Receiver should be working for the creditors and needs to be responsive.
What is a receiver?
A receiver is an individual appointed by a state or federal court to take control of the assets of a company for the benefit of creditors. The receiver will investigate the assets and actions of the company, interview witnesses and if necessary, bring lawsuits to recover assets for the benefit of creditors. The receiver can hire lawyers and accountants to help with the investigation.
When do I get paid?
Receiverships can take a year or more before a distribution is made to creditors.
Will I get all my money?
It depends on the value of the assets and the amounts of the company’s liabilities. Generally, creditors do not get paid in full. Therefore, it is important to monitor the receivership and make sure the receiver is working efficiently to locate the assets and sell them for the highest price.