WordValereceivership
court-appointed management of a company in financial trouble
In more detail
1. (noun) a legal situation in which a court appoints a receiver to manage a company or property, usually because the owner cannot pay debts or handle it properly
2. (noun) the state of being managed by a receiver appointed by a court
Examples
- 1. The struggling airline went into receivership after years of financial losses.
- 2. The property remained in receivership for two years before being sold at auction.
How to use receivership
Receivership is a formal legal and financial term used to describe the condition when a court assigns a neutral third party (the receiver) to manage a debtor's assets or a failed company. It typically signals financial distress but is distinguished from bankruptcy in that the property or business may potentially be rehabilitated and restored to the owner rather than liquidated. The term is primarily used in legal, corporate, and financial contexts.
Common phrases
- in receivership
- place in receivership
- enter receivership
- court-appointed receiver
- go into receivership
Synonyms
administration · liquidation · insolvency · bankruptcy · trusteeship
Word family
receiver · receive
A common mistake
Learners often confuse receivership with bankruptcy, but receivership is a management arrangement whereas bankruptcy is a formal legal declaration of insolvency; a company can exit receivership, whereas bankruptcy involves a more complete legal status change.
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