What Is Receivership?

Insolvency In Ireland - What Is ReceivershipWhen your business debts are continually growing and it seems almost impossible to pay your creditors, you can clearly see where your business is heading. Bankruptcy can appear to be the most likely outcome, but there is a better option – Receivership. Although you can find it incredibly difficult to allow someone else to have the overall control of your company, it would be difficult to find another alternative that can lessen the impact of your business’ decline.

But in order for you to prepare yourself and your business to enter into receivership, you need to first be able to understand the nature of Receivership, and how it works.

So what is Receivership?

Receivership happens when the bank, court or a secured creditor assigns an external person (known as the receiver) to take over the administration of a company. This outside manager will then replace the managing director of the business that has been placed under receivership, and this person will endeavor to find the best ways possible to pay the company’s debts in a limited amount of time.