- A situation where an individual is appointed custodial control of an institution or enterprise and is given discretion to find the best way to recoup unpaid loans to creditors. Oftentimes the entity placed into receivership is forced to completely liquidate their assets in order to meet their financial obligations. The receiver (the one put in charge of the company in receivership) can be appointed privately, appointed by a government regulator in pursuant to a statute, or appointed by a court of law.
insolvency, chapter eleven, declaring bankruptcy, chapter xi, default, bankruptcy
Related Terms and Acronyms
- Bankruptcy (BK) — Acronym, Important,
- A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
- Bankruptcy Trustee — Definition,
- A private individual or corporation appointed to undertake bankruptcy proceedings for a individual or corporation.
- Business Bankruptcy — Definition,
- A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes.
- Consumer Bankruptcy — Definition,
- A bankruptcy case filed to reduce or eliminate debts that are primarily consumer debts.
- Illiquid Asset — Definition,
- An asset that cannot be sold easily or in a timely manner for its full value.
- Liquid Assets — Definition,
- Cash and other property that can be converted quickly and easily into cash.
- Liquidation — Definition,
- The practice of selling or redistributing some or all of a business's assets in order to repay debts or pay investors if the business becomes insolvent or is sold in full or in part.
- To convert into cash.
- To settle the outstanding debts by selling property.
- Liquidity — Definition,
- The ability to convert assets to cash quickly, without significant losses.
- Non-dischargeable Debt — Definition,
- Debt that cannot be eliminated in bankruptcy such as Federal taxes.
- Solvency — Definition,
- To be able to meet one's financial liabilities in the short or long term.
- Tax Sale — Definition,
- A government sale of property to recover unpaid taxes.