28 U.S.C. § 3103 — Receivership

(a) Appointment. If section 3101’s requirements are met, a court may appoint a receiver for property in which the debtor has a substantial nonexempt interest when the United States shows reasonable cause to believe the property is in substantial danger of being removed from the court’s jurisdiction, lost, concealed, materially injured or damaged, or mismanaged. (b) Powers. (1) The appointing court may authorize the receiver to take possession of real and personal property and sue for, collect, and sell obligations on conditions and for purposes the court directs. It may also authorize the receiver to administer, collect, improve, lease, repair, or sell property under section 3007 as directed. A receiver managing residential or commercial property must show expertise in managing that type of property. (2) Unless the court expressly authorizes it, the receiver may not hire attorneys, accountants, appraisers, auctioneers, or other professionals. (c) Duration. The receivership ends at judgment or when an appeal of the judgment ends, unless the court continues it under section 3203(e) or otherwise orders continuation. (d) Accounts and reports. The receiver must keep written accounts listing receipts and expenditures, describing the property, and naming the depository for receivership funds. Anyone apparently interested in the property may inspect the accounts. The receiver must file reports at intervals set by the court and serve copies on the debtor and the United States. (e) Changes and removal. The appointing court may, on the receiver’s motion or on its own, remove the receiver or change the receiver’s powers at any time. (f) Priority. If more than one court appoints a receiver for the same property, the receiver who first qualifies under law is entitled to possession, control, or custody. (g) Compensation. (1) The receiver may receive commissions allowed by the court, but normally not more than 5 percent of money received and paid out, unless the court directs otherwise. (2) If no funds remain with the receiver when the receivership ends, the court may set compensation based on services and order the party that sought the appointment to pay it, along with unpaid necessary expenses. (3) At the end, the receiver must file a final account of receipts and payments and request compensation, stating the amount sought and services performed.