How Does a Receiver Charge for Services

A receiver, in a business or legal context, is typically appointed by a court or other authority to manage the assets of a business or individual who is in financial distress, such as during bankruptcy or receivership proceedings. The receiver’s role is to take control of and preserve the assets, sell them if necessary, and distribute proceeds to creditors.

Receivers usually charge for their services in one of the following ways:

1. Hourly Rates:

• The receiver charges for the time spent on managing the assets and fulfilling their duties. This can include time spent overseeing operations, dealing with creditors, and preparing reports.
• Rates can vary depending on the receiver’s expertise, industry, and jurisdiction. Often, a receiver will have a set hourly rate, and they will bill for every hour worked.

2. Flat Fees:

• In some cases, a receiver may negotiate a fixed fee for their entire service. This might occur when the scope of work is well-defined or for more straightforward cases.

3. Percentage of Assets or Sale Proceeds:

The percentage can vary, but it’s typically agreed upon in advance or set by the court.

Often, a receiver’s compensation may be based on a percentage of the assets they manage or the proceeds from the sale of assets. This structure incentivizes the receiver to maximize the value of the assets under their control.