Indiana Receivership Attorneys

Indiana Receivership Attorneys

Receivership law is a useful and important remedy for creditors trying to get paid or protecting the assets of a debtor from other creditors or wrongdoers. Whether using receivership as a collection tool or serving as a receiver to marshal assets, we have the experience necessary to protect our clients.

Using Receivership as a Tool

We represent creditors (secured or unsecured alike) who have been placed in precarious positions as the result of the inability or non-payment to them of funds owed by debtors.  In many cases, the position of the debtor may have been declining for some time, often resulting in late payments that gradually turn into non-payment.

In these situations, it is critical to take prompt action before the position of the debtor or the value of our client’s collateral declines further.  On behalf of our creditor clients, we enforce their rights and seek receivership when the facts support it.

Serving as a Receiver

We are frequently retained to serve as receivers or counsel to court-appointed receivers over debtors that are in difficult financial circumstances.  On behalf of the receiver, we work to marshal the assets of the debtor, including physical property or accounts receivable, to make sure the values and collections are maximized and accounted for, and to oversee disbursements in accordance with agreed-upon instructions or court orders.    

Frequently Asked Questions

What is a receiver?

A receiver is an individual or entity appointed by a state or federal court to take control of assets of a company or individual for the benefit of its 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.

What powers does a receiver have?  Can it sell real property free and clear of liens?

The powers of a receiver can be as broad or as narrow as the order appointing it provides.  Under Indiana statutes and case law, a receiver generally has the right to carry on all of the debtor’s business affairs, buy and sell property, and bring or defend claims.  Often, the order appointing receiver will grant the receiver the right to sell assets of the debtor free and clear of liens, with the liens attaching to the proceeds of sale.  In the context of a mortgage foreclosure, however, a receiver can only sell the mortgaged real estate if the mortgagor has waived its right of redemption, either in a post-default workout agreement or by filing a waiver with the court. 

How can I stay informed about the progress of the receiver’s progress?

Sometimes a receiver will establish a web site for communicating with creditors, but only if the receivership is large enough to justify the expense. In nearly all receiverships the receiver is required to file periodic reports with the court to advise all parties about the progress of the case. You can hire an attorney to help you, or contact the receiver directly.

How do I get paid?

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.  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.

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 is an officer of the Court but should be working for the creditors and needs to be responsive.

 

 

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