receivership vs bankruptcy definition
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights, especially in cases where a company cannot meet its financial obligations or enters bankruptcy.
Bankruptcy is a legal declaration of oneâs inability to pay off debts. When one files for bankruptcy, one obliges to pay off what is owed with help from the government. In general, there are two main forms of bankruptcy â reorganization and liquidation bankruptcy.