Meaning & Definition of word "Receivership"

Receivership

/rɪˈsiː.vər.ʃɪp/

1. The state of being in the custody of a receiver, typically due to financial distress or insolvency, where the receiver is appointed by a court to manage the assets and affairs of a company or individual.
- Example: The company entered receivership after failing to meet its financial obligations.
2. A situation in which a person or entity is placed under the management of a court-appointed receiver.
- Example: The restaurant has been in receivership for several months as the owners seek a buyer.
3. The condition whereby a company is under the control of a receiver to protect its creditors while the business attempts to restructure.
- Example: During receivership, the business found ways to reduce operational costs and improve its financial standing.
4. Legal status of being managed by a receiver during bankruptcy proceedings.
- Example: The court declared the firm in receivership to ensure fair treatment of all creditors.

●From the word 'receiver' combined with the suffix '-ship', indicating a state or condition.

in receivership:

A legal state where a receiver manages a company's assets.

go into receivership:

To enter a state of receivership due to financial distress.

receiver:

A person or entity appointed by a court to manage the assets of a failing organization.

liquidation:

The process of closing a business and distributing its assets to claimants.

Meaning: Going under

● Example Sentence: The store is going under; they might end up in receivership.

Meaning: In deep water

● Example Sentence: If they can't pay off their loans, they'll find themselves in deep water, possibly in receivership.