Receiverships

Receiverships Can Be Used To Enforce Judgments

The appointment of a receiver to enforce a judgment should be a remedy of last recourse. When a judgment has become uncollectible because of the nature of the assets or business of the judgment debtor, a receiver should be considered. Ordinarily a receiver is appointed because all other methods to collect the judgment have proven fruitless, or would be fruitless if undertaken.

Circumstances under which a receiver is appointed to assist in the enforcement of a judgment often occur include:

The judgement debtor may own a liquor license. Liquor licenses are not subject to levy and execution. However, a receiver may be appointed to sell or liquidate the entire business, including the liquor license. The proceeds from the sale of the liquor license are then distributed first to taxing authorities (if taxes are owed) and then to the judgment holder until the judgment is paid.
There is a valid concern that enforcement of the judgment can not occur before the judgment debtor has received certain assets and disposed of them by placing them outside the jurisdiction of the court which issued the judgment.
The business is a cash based business and the only method by which the cash may be collected is by placing the entire business under the jurisdiction of the Court, through the appointment of a receiver. An example of this kind of businesses is a taxi company.