A passive receiver is a person appointed by a court to manage property involved in bankruptcy or legal disputes. Their primary role is to preserve the property, collect any assets, and report these to the court for distribution. Unlike active receivers, who are responsible for managing ongoing businesses or operations, passive receivers focus solely on safeguarding and accounting for assets.
Passive receivers are commonly used in civil law contexts, particularly in bankruptcy proceedings and lawsuits. They play a crucial role in ensuring that the assets are maintained and accurately reported to the court. Users can often manage related forms and procedures themselves by utilizing resources like US Legal Forms, which offers templates drafted by experienced attorneys.
Here are a couple of examples of abatement:
Example 1: In a bankruptcy case, a court may appoint a passive receiver to oversee the liquidation of a company's assets. The receiver will ensure that all assets are preserved and accounted for before they are sold and the proceeds distributed to creditors.
Example 2: (hypothetical example) A passive receiver is appointed in a lawsuit involving a disputed property. Their role is to maintain the property until the court decides how it should be divided between the parties involved.
Examples of state differences (not exhaustive):
| State | Notes |
|---|---|
| California | Passive receivers may have specific reporting requirements under state law. |
| New York | In New York, passive receivers must follow strict guidelines for asset preservation. |
| Texas | Texas law outlines the duties of passive receivers in bankruptcy cases. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Passive Receiver | A court-appointed individual who preserves and reports on assets. | Focuses on asset preservation without managing operations. |
| Active Receiver | A court-appointed individual who manages ongoing business operations. | Involved in the day-to-day management of a business. |
If you find yourself involved in a case that may require a passive receiver, consider the following steps:
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The main role of a passive receiver is to preserve property and report on its status to the court.