A receiver is an uninterested third party appointed by the court to manage a property in litigation and receive its rents and profits. The receiver applies or disposes of rents and profits at the discretion of the court when it does not seem reasonable for either the plaintiff or the defendant to hold them.
Normally a receiver situation arises in cases involving a business problem or lawsuit, bankruptcy or foreclosure. Receivers can be requested in other instances as well. A receiver can be appointed in cases involving a divorce, estate, guardianship or trustee including (but not limited to) cases for the benefit of minor children.
With cases involving a nervous creditor, or in a case in connection with a lawsuit, a plaintiff’s attorney may request the judge to appoint a receiver to manage or protect the condition or value of the assets. The receiver oversees and takes care of the assets under the supervision and direction of the court.