Once a company is declared bankrupt, a receiver is appointed by the courts to take possession of all of the company's assets, which will be sold to pay the creditors in order of priority.

Question

Quizplus · Accepted Answer

In bankruptcy proceedings, a receiver or trustee is often appointed to manage and liquidate the company's assets to pay off creditors according to the legal priority of their claims.

Once a Company Is Declared Bankrupt, a Receiver Is Appointed