Receivership Can Provide A Viable Bankruptcy Alternative
A properly managed Washington state court receivership is a strong bankruptcy alternative, and a proven solution that provides asset protection, management and disposition under Court supervision. The attorneys of Davidson Backman Medeiros are experienced receivers, and capable managers of all types of assets. As officers and agents of the Court, we are fully accountable for the transparent administration of Washington receivership estates.
A general receiver is authorized to operate a business in the ordinary course of business, and assert claims against third parties as appropriate. If authorized by the Court, a general receiver can also sell assets under Court supervision, and distribute the proceeds of sale in accordance with the priorities set forth in the Washington Receivership Act.
Automatic Stay To Protect Assets
The Washington Receivership Act provides for an automatic stay of litigation, foreclosures, garnishments and levies. The automatic stay is different in scope and duration that the automatic stay that applies in bankruptcy, but it is highly effective. The assets of the company are protected and preserved as long as the automatic stay remains in effect.
Efficient Alternative to Bankruptcy
A Washington receivership is typically faster, less contentious, and less costly than a proceeding under Chapter 11 of the Bankruptcy Code. The receiver acts as an officer of the Court, and is an advocate for the interests of creditors and equity holders. Those creditors and equity holders will often recover more through a receivership than through a Chapter 11.
Sales Free and Clear of Liens
The Washington Receivership Act provides for the sale of assets free and clear of liens, allowing for the sale of assets that are heavily encumbered, and impounding the sale proceeds. The receivership requirements for a sale free and clear of liens are less far less technical that the requirements for such a sale under the Bankruptcy Code, but they are equally effective.
We Can Help
We represent individuals, businesses, and receivers in all aspects of Washington receivership cases. Call (509) 624-4600 or email email@example.com for further information regarding possible representation.