SPECIALIZING IN CREATIVE INSOLVENCY SOLUTIONS.

A receivership is a remedy that is authorized by a court’s equity powers. Upon appointment, the Receiver becomes an officer of the court to receive, care for, administer and dispose of property under the orders of the court. The Receiver’s powers and responsibilities are defined by the order of appointment.

A Receiver is commonly appointed to:

• enforce the collection of child and spousal support;
• administer and market real property;
• operate a business;
• collect on a judgment;
• recover fraudulently conveyed property;
• partition an interest in property or a business;
• stay foreclosure or a tax forfeiture of real property;
• liquidate pension and retirement plans (with the tax and penalty paid by the support payer);
• establish an annuity to fund future support obligations; and redeem a workers compensation claim.

Most courts expect that litigants will have attempted other means for enforcement prior to requesting the appointment of a Receiver. Should the appointment of a Receiver be necessary, it is accomplished by filing a motion or a complaint under one of the prescribed statutory provisions.A Receiver is appointed at a hearing before the court at which time an order is entered. The order of appointment should include the following:

• Name and identifying information of the person or entity under Receivership;
• Assets to be administered under the Receivership; and
• Provision for bond for the Receiver.

The order need not include every consideration or possibility. This would be unduly onerous. Rather, reliance on the judgment or orders of the court, State and Federal law and the Michigan Rules of court will address most issues.