A receivership is when an individual is appointed to take control of a trust or a company’s assets for some period of time. The individual in question is responsible for managing the funds in a way that benefits the company, while still doing what is needed in terms of meeting their obligations and debts. A receivership is most frequently found during the course of bankruptcy. The responsible individual will be a trustee, who is needed to ensure that the company is structured in a way that it will be able to move forward and that it has appropriately managed all of its debts. The trustee will need to act in the best interest of the company while still ensuring that the company’s creditors are repaid.
Once the receivership is over, the assets will be turned over to the company again. The trustee will hand over everything to the company’s operations, and the company will be responsible for managing itself once more. During the time that the assets are held by the trustee, however, the company is no longer in control and a separate EIN Number will need to be created for the Trust. You can obtain your official Trust EIN Number online within an hour.