|
How can I use
a receiver to enforce my court judgment?
The creditor's attorney can bring a motion before the court where your
case is pending for appointment of a receiver to enforce the judgment.
CalReceiver handles enforcement receiverships where the recovery
amount is at least $50,000. A receiver is only one possible remedy to
enforce a judgment, and most cases where a receiver is appointed involve
management of a corporation, small business or income-producing real property.
Why would a
receiver be appointed to manage a corporation or small business?
While there are a number of possible scenarios that would indicate the
need to appoint a receiver, they usually involve the requirement to effectively
manage the business in order to meet the claims of creditors or otherwise
enforce an order of the court.
Does the receiver
just bleed the business dry to satisfy the creditor's claim?
Not at all! In fact, many businesses can realize long-term benefits from
a receivership. The receiver is mandated by law to use his best efforts
to preserve the viability of the business while enforcing the court's
order. Often, the receiver brings a fresh management perspective to the
business and can effectively implement accounting practices that benefit
the business well beyond the receivership period. It is important to remember
that the receiver is not an agent of the creditor, but an officer of the
court independent of any interested parties.
How does a receiver
manage real property?
Receivers are appointed to manage real property when that property, either
through generated income or from sale, is to be used to satisfy a creditor's
claim. If the property is to be sold, the receiver manages the property
to preserve its value until the sale is complete. Sometimes, the income
produced by the property will be applied toward satisfaction of a creditor's
claim and the receiver's job is to collect income, pay expenses and otherwise
manage the receivership estate.
What is the
time frame to appoint a receiver?
In many cases, the party seeking to appoint the receiver wishes to do
so on very short notice, usually due to circumstances that threaten to
irreparably damage a creditor's secured position. In most cases, CalReceiver
can prepare the necessary paperwork, acquire its bond and be ready for
appointment within 3 business days, sometimes sooner if required for
emergency cases. Some cases may require up to 10 business
days or longer, depending on complexity or special requirements.
What do I need
to do to have a receiver appointed for my case?
If you are a creditor, you must have your attorney contact CalReceiver
to discuss the details of your case, as it is against our policy to deal
directly with creditors. Once we determine that the case meets our eligibility
criteria, we will forward sample paperwork to your attorney to review,
modify as necessary and file with the court. CalReceiver can take
control of the receivership estate as soon as the judge signs the order.
How much does
it cost to appoint a receiver?
Although the costs of the receiver are usually paid through the
receivership estate, the creditor must advance the costs necessary to
appoint the receiver. If there are not sufficient liquid funds available
within the receivership estate to support operation expenses, the moving
party will need to loan funds to the receivership estate through a
Receiver's Certificate. The Receiver's Certificate creates a super
priority lien against the estate and is paid out of the estate before
distribution of any other payments. CalReceiver requires a minimum
of $2,500.00 in liquid funds to operate any receivership estate, and a
greater amount may be required based on the particulars of each case.
What region
does CalReceiver service?
We specialize in receiverships governed under California law and have
associates throughout the state. We will handle most any viable
receivership ordered through any State or Federal Court (including
Bankruptcy Court) in California.
|
