What is a Receiver?

Receiver or also called as administrative receiver. Whenever a firm or a company files for bankruptcy then the court or creditors appoint a person who is called a receiver in that particular company. The receivers theoretical purpose is to save the company but in real life his main goal is to make enough money to pay back most of the debt what is owed to the creditors.

The receiver sometimes assumes the goal of director and has a wide range of power. To successfully finish his jobs he usually liquidates the firm, or sells off everything that can be to raise enough money. In some cases receiver get only two weeks to accomplish their goal. When a company gets a receiver then it’s called that the company is in receivership.