§3103 Receivership

Summary

A court can appoint a receiver to take charge of property a debtor owns if section 3101 is met and the United States shows reasonable cause to believe the property might be removed from the court’s reach, lost, hidden, seriously damaged, or mismanaged. The court can let the receiver take possession, run or sell real or personal property, sue to collect money owed, and lease, repair, or improve property under section 3007. The receiver cannot hire lawyers, accountants, appraisers, auctioneers, or other professionals unless the court allows it. A receivership ends when judgment is entered or an appeal finishes unless the court orders it to continue under section 3203(e) or otherwise. The receiver must keep written records of money in and out, describe the property, say where funds are kept, allow interested people to inspect the records, and file regular reports that the receiver gives to the debtor and the United States. The court can remove or change the receiver’s powers at any time. If more than one court appoints a receiver, the first one who qualifies gets control. The court may let the receiver earn up to 5 percent of amounts handled unless it decides otherwise. If no funds remain at the end, the court can set pay and may order the party who asked for the receiver to cover it and any unpaid necessary expenses. The receiver must file a final accounting and ask for payment that lists the amount and work done.