A business receivership in Newport Beach California may occur when a business has missed loan payments and defaulted on a loan that was secured by company assets such as equipment, property, accounts receivable, etc. In such instances, the lender/creditor has the right to seize possession of those assets by way of receivership. When creditors are threatening a business receivership in Newport Beach California, business owners can easy to become panicked and intimidated, considering that the likely outcome of such an occurrence would be the end of the business. If your business is at risk of falling into receivership, you need to seek competent legal counsel in order to protect your business interests.
A business receivershipis a formal insolvency procedure in which a creditor or a court appoints a receiver to assume possession of secured assets and receive the funds owed. This usually occurs when a company cannot meet its financial obligations or files for bankruptcy, although there are a variety of instances where a business may fall into receivership. Some of the more common reasons businesses fall into receiverships include:
- Enforcement of a Court Judgment
- In Aid of Execution
- Charging Orders
- Corporate / LLC Alter Ego
- ABC License Sales (CCP §708.630)
- Interim Corporate Management
- Real Property (Rents, Issues & Profits)
- Deed of Trust Foreclosure
- Marital Dissolutions
- Fraudulent Transfers
- Criminal Profiteering (PC §186, et. seq.)
- Aggravated White Collar Crime (PC §186.11)
If a company is able to pay the debt owed, then it may be able to continue operating after receivership, but that is usually more the exception than the rule. The best way for a business to avoid falling into receivership is to find legal counsel as soon as the threat arises; since there are legal procedures that may be able to help you keep your business.