§3103 Receivership

Summary

A court can appoint a receiver to take charge of property when the rules in section 3101 are met and the United States shows good reason to fear the property will be moved out of the court’s reach, lost, hidden, badly damaged, or mismanaged. The receiver may take possession of real and personal property, bring or defend lawsuits about it, collect and sell debts, and manage, improve, lease, repair, or sell the property as the court directs (including actions under section 3007). The receiver cannot hire lawyers, accountants, appraisers, auctioneers, or other professionals unless the court specifically allows it. The receivership normally ends when judgment is entered or an appeal finishes unless the court continues it under section 3203(e) or orders otherwise. The receiver must keep written records of money and property, let interested people inspect those records, file regular reports and give copies 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 one who first qualifies under the law has priority. The court may allow the receiver a commission up to 5% of money handled, or set other compensation and may order the party who asked for the receiver to pay it. At the end, the receiver must file a final account and request payment showing the work done.