# receivership

/ɹiˈsivɝˌʃɪp/ (US) · /ɹɪsˈiːvəʃˌɪp/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/receivership
Updated: 2026-05-28

## Definition

a legal process where a company is taken over by a court-appointed person to manage its debts and assets. This usually happens when a business cannot pay its bills.

For teachers: a legal status in which a company is placed under the control of a court-appointed official to manage its assets and debts. Often used in the context of corporate insolvency or bankruptcy proceedings.

## Examples

- The company entered receivership after failing to pay its suppliers.
- When the bank refused to extend the loan, the struggling retailer was forced into receivership to protect its remaining assets.
- The transition into receivership allows the court to appoint a neutral third party who can assess the company's liabilities and determine whether a restructuring is feasible or if liquidation is necessary.

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