What Are Orders To Preserve Value Of Assets Levied Upon?
Orders to preserve the value of assets arise in situations involving businesses that are being run poorly or on real property that is not being properly maintained or in both cases where principals of the judgment debtor may be siphoning assets for their personal benefit. For example, if you are a commercial lender who lent money on a piece of real property (you may or may not have security against it), but the debtor is letting the property go to waste. You could ask the court to appoint a third-party receiver (sometimes this person will be an attorney). By court order, the receiver is given the right to take over the business or, more often, they’re given the right to control certain parts of the business or manage it so it doesn’t fall into disrepair. If a debtor is improperly siphoning off the assets, you could have a receiver appointed to prevent that from happening, which would preserve the assets of the business for all creditors.