Business receivership in Newport Beach Californiais a specific type of bankruptcy. Business receivership applies to corporate bankruptcies. Duringbusiness receivership in Newport Beach California, a receiver is appointed to handle the daily operations of the company. Often, the receiver is appointed by a bankruptcy court, but the receiver may also be appointed during a private proceeding. The receiver is given a significant amount of decision-making power during the case.

What are the receiver’s responsibilities?During the bankruptcy proceedings, the receiver’s job is to figure out what the best method of paying debts and loans may be. In some bankruptcy cases, the corporation may be able to negotiate payment plans or reduced amounts for some debts so that the corporation may actually continue operating after the case has been finalized. In other cases, the best move may be to liquidate certain assets the corporation owns and use them to pay off outstanding debts.

There are a number of benefits that business receivership provides. For example, the process requires fewer court hearings than if the parties had used traditional bankruptcy processes. This not only lowers the costs involved with bankruptcy, but also shortens the timeline of the process. Therefore, the parties save money while finalizing the case much earlier. Additionally, the corporation may be able to save at least some of its assets during the process.

If you are involved in a corporate bankruptcy, ask your attorney if business receivership is an option for your case to save time and money.