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I do not see anything I disagree with these paragraphs from Business Receivership - An Alternative to Bankruptcy about the benefits of a receivership:

There are many benefits to business receivership over bankruptcy. First there is less stigma attached to business receivership than bankruptcy. Second, there is an increased chance your troubled business can survive.

Third, business receivership is quicker and cheaper than bankruptcy. Why is this true? There are less mandated reporting and court hearings with receivership. And this alone tends to lower the stress of everyone involved.

Finally a major benefit of business receivership is that it allows for creativity to rescue company holdings. This means the company can possibly still continue on as a going concern. Unlike a bankruptcy filing, receivership often allows the company to keep more of its assets.

On the other hand, I think that more attorneys are familiar with the federal Bankruptcy Code than they are with receiverships. After all, the federal bankruptcy law has become the paramount debtor-creditor law.

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