What a receiver does is still unknown to many people. In short, it is a bankruptcy authority. A receiver is appointed in the event of a court decision declaring bankruptcy. They perform their duties from the date of the declaration of bankruptcy until the end of the entire proceedings. What else should you know about the work of a receiver?
What a receiver does is still unknown to many people. In short, it is a bankruptcy authority. A receiver is appointed in the event of a court decision declaring bankruptcy. They perform their duties from the date of the declaration of bankruptcy until the end of the entire proceedings. What else should you know about the work of a receiver?
What are the duties of a receiver?
The receiver is primarily responsible for taking possession of the bankrupt’s assets, managing them, protecting them from destruction, damage or removal by third parties, and proceeding with their liquidation. More specifically, a licensed receiver is to liquidate the bankrupt’s assets so that the funds obtained can be used to implement a distribution plan designed to satisfy creditors. However, that is not all. The receiver has a number of other duties, including responsibility for the bankrupt’s reporting, i.e. he is required to prepare annual financial statements. The person holding this position may also decide to continue running the bankrupt company, but in this case, they will have to face all the challenges that the bankrupt company’s management faced before the bankruptcy was declared.
Who can become a receiver?
Only persons who obtain a restructuring advisor licence will be able to perform the work of a receiver. On the other hand, a person who is a creditor or debtor of the bankrupt, or a member of the family of a creditor or debtor of the bankrupt, cannot become a trustee. A person who has acted as a supervisor or administrator in the debtor’s restructuring proceedings cannot become a trustee either. It can be concluded from this that the role of a receiver is important and responsible. They play a major role in bankruptcy and perform key activities. Therefore, not everyone can perform the function of a receiver, given the number of tasks performed and their importance. After each case, the receiver must submit an appropriate report covering all the activities they performed during their work.
A receiver is appointed in every bankruptcy proceeding, regardless of the legal form of the debtor. In the case of capital companies, the receiver becomes the management board. In the case of natural persons, the receiver becomes their legal representative. Therefore, the bankrupt person cannot take any legally significant actions without the knowledge and active participation of the receiver. All legal actions taken independently by the debtor or its management are immediately invalid by operation of law.
Related entries
Upadłość firmy – z czym to się wiąże?
Every entrepreneur running a business tries to avoid thinking about worst-case scenarios, but unfortunately, sometimes the financial situation spirals out of control. When a company is unable to pay its debts, it may be necessary to file for bankruptcy.
7 min.
13 November 2024
Bankruptcies and Restructuring – summary of the first quarter of 2020.
Data on insolvency and restructuring from the first quarter of 2020 compared to the same period last year show a stabilisation in the number of restructuring proceedings and a slight increase in the number of insolvency proceedings, both among companies and consumers.
2 min.
22 April 2020
Amendments to the Bankruptcy Law of 24 March 2020 – selected issues
Over a month ago, on 24 March 2020, an amendment to the bankruptcy law came into force, namely the Act of 30 August 2019 amending the Bankruptcy Law and certain other acts.
4 min.
24 March 2020
