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The Receivership Process: A Visual Guide

Learn about the receivership process and how receivership works through a visual guide from the experts at FedReceiver, Inc.

At FedReceiver, a common question our court-appointed receivers get asked is, “how exactly does receivership work?” While there are many different types of receivership cases we can administer, the process of appointing a receiver is uniform. Whether you require a receiver for rents, issues & profits, government enforcement actions, or a marital dissolution, there are nine key steps involved with appointing a receiver in your case.

The nine steps to appointing a receiver begin with identifying the dispute and deciding whether or not a receiver is necessary. From there, the party will seek out a qualified receiver, prepare the necessary papers, and file a motion with the court. If the judge grants authority for the receiver to be appointed, the court will issue an order appointing the receiver. In the final stages, the newly-appointed receiver qualifies to serve on the case by filing an oath and bond with the court, and ultimately commences duties.

Take a look at our below infographic, which further explains the nine stages of appointing a receiver. For more information on our receivership services, contact our offices today.

Chronology of Appointing a Receiver

Step by Step

Underlying Litigation Filed

Receiverships will always require some type of dispute: examples include “breach of contract” or a foreclosure action. This must be identified before proceeding.

Dispute Requires Receiver

Not every dispute requires a receiver. This is the phase where either party may request the appointment of a receiver.

One Party Seeks/Qualifies Proposed Receiver

If the plaintiff or defendant decide they’d like to seek the appointment of a receiver, they will seek out a qualified receiver. A receiver can be qualified in a number of ways, including background, experience and location.

Receiver Executes Declaration in Support of Appointment Receiver

Once deciding on a qualified receiver, the party will begin preparing the necessary papers to begin the appointing process.

Party Nominates Receiver

The party requesting the appointment of a receiver files a motion with the court presiding over the instant case. A receiver is an agent of the court. During this step, the nominating party states the legal authority on which the appointment of receiver is based. The motion to appoint a receiver may be filed on an emergency basis (ex parte), noticed motion (when the party seeking the appointment provides the notice to all interested parties), or by stipulation (if all parties agree to the appointment).

Court Hearing Occurs Seeking Appointment of Receiver

During this phase, the court will rule on whether or not to appoint the receiver. The court will typically do one of three things: a) appoint the receiver; b) determine that the appointment of the receiver is not appropriate at that time, but could be at a later date; c) deny the appointment of receiver.

Court Issues Order Appointing Receiver

The order appointing receiver is signed by the judge in the case. The order determines the initial scope of the receiver’s duties and authority. The nominating party then alerts the receiver to the appointment and provides a copy of the signed, conformed order.

Receiver Qualifies To Serve as Receiver by Filing Oath/Bond

The newly-appointed receiver is typically required to file an oath and bond (in an amount determined by the court) with the court in order to qualify as the receiver in the case. The receiver cannot undertake any duties until this step is complete.

Receiver Commences Duties

Duties are pursuant to the authority granted to the receiver by the order appointing the receiver.

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