Receiverships are a common part of real property foreclosures. A secured lender may want the collateral to be placed in the care of an independent third-party. Most trust deeds and mortgages have provisions regarding receivers and Arizona law allows a lender to seek a receivership remedy without including counts for judicial relief. This means a receiver can be appointed while a party seeks non-judicial relief (like a trustee or UCC sale).
What can receivers accomplish? A receiver can help divide or distribute assets. If allegations of fraud or breaches of fiduciary duties are involved, a receivership can help the victim preserve assets while the investigations are going on. Finally, a receivership allows a borrower time to raise capital or sell assets while the lender is protected with the process being supervised by a fiduciary.
Receiverships are not bound by the timelines or deadlines imposed in a bankruptcy case. A case may remain pending while the parties search for solutions through the receivership. If the receivership fails, bankruptcy is always an option.
If you are interested in learning more about Arizona receiverships, contact Windtberg & Zdancewicz to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide Arizona residents and businesses with experienced legal representation in all collection matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.