what is receivership

60 – Understanding Receivership vs Bankruptcy

What is Receivership? Like Bankruptcy, Receivership occurs when a business has secured debt that they are unable to pay. But unlike a Bankruptcy, it is usually a creditor that calls in a Licensed Insolvency Trustee to act as a Receiver. Daniel Maksymchak, Licensed Insolvency Trustee with LCTaylor explains what the term Receivership means. He clarifies the difference between Bankruptcy and Receivership.