Definition: A receivership is a legal or equitable proceeding in which a receiver is appointed for an insolvent corporation, partnership or individual to preserve it assets for benefit of the affected parties.

• Majority of filings come from individuals.
  
  
• Business usually closes, but in some cases employment is continued.
  
  
• Bar date for filing claims is one hundred eighty (180) days after Petition Date.
  
  
• The Commission can claim all tax, interest, and all penalties computed to the date of filing the petition.
  
  
• The Stay Order is lifted upon Discharge. Collection action can be pursued after Discharge is entered.
  
  
• Taxes less than three years old from the petition date are not discharged and will be pursued after closure.
  
  
• A Trustee is appointed to liquidate the assets.

• This is reorganization where the business and employment normally continue.
  
  
• The employer operates as a debtor-in-possession. A trustee is rarely appointed.
  
  
• The Bar Date for filing claims is one hundred eighty (180) days after the Petition Date.
  
  
• The Agency is allowed to claim only the pre-petition tax interest and penalties. The taxes due between the petition date and the confirmation date are handled by filing an Administrative Expense Claim. This claim is the number one priority in bankruptcy.
  
  
• The Agency is unable to take civil action until the case is closed or the "Plan" defaults.
  
  
• A "Plan" may take 12 years to pay taxes.
  
  
• Amounts due after the plan is confirmed are not part of the bankruptcy.

Arrangement Plans

1. In a Plan of Arrangement, a Discharge is entered only after all payments are made to the creditors.
   
   
2. In a Liquidating plan, no Order of Discharge is entered. The company is operated until all assets are sold.
   
   
3. Collection action will be initiated by the Collection Section as necessary on Plans of Arrangement.

• This employer owes less than $269,250 to unsecured creditors and less than $807,750 to secured creditors and has a "regular" income. The business may continue to operate. This is the maximum criteria for a Chapter 13, if an employer owes more; they are required to file under Chapter 11.
  
  
• Bar date for filing claims one hundred eighty (180) days after the Petition Date.
  
  
• A trustee is appointed to administer the Plan, to accept payments from the debtor and distribute monies to the creditors.
  
  
• The Agency is allowed to claim only pre-petition tax, interest, and penalties.
  
  
• A Discharge is entered at the completion of the Plan. A Chapter 13 Discharge clears all debts for which a claim was not filed so long as the debt was listed in the petition.
  
  
• A Plan may take 5 years to pay all debts. Payments to the Agency may begin at any time during the Plan.
  
  
• Civil action on pre-petition debt cannot be taken by the Agency until the case is closed. Post-petition collection action will be initiated by the Collection Section.

• This section is the same as Chapter 13, except that the debtors "regular income" is from a family farm and the plan is for a maximum of three (3) years.