JEFFERSON CITY — Today, January 14, Senate Bill 578 was voted out of the Senate Judiciary and Civil and Criminal Jurisprudence Committee. Senate Bill 578 would modify Missouri law relating to commercial receiverships, a legal process by which a court appoints an entity or individual to be responsible for property, assets and rights of a business. This is a court action frequently made when a business cannot meet its financial obligations.
Commercial receivership is used as an alternative to bankruptcy that, while valuable in some instances, can be a slower and more costly process
“This legislation will help clear up a number of problems associated with the court process in filing commercial receiverships. We need clear-cut, defined laws regarding this practice so that it’s used consistently, and this legislation will help do just that,” Senator Keaveny said. “I am excited to see this legislation move so quickly through the legislative process and I look forward to discussing this bill with my fellow lawmakers.”
Most courts rarely see commercial receivership cases, and existing statutory law leaves many questions unanswered or creates uncertainty to the appropriate means of administering a commercial receivership estate. Missouri lacks a uniform set of standard and developed statutes and guidelines for when courts are faced with the duty to administer receiverships.
This legislation will now be placed on the Senate calendar.
For more information, visit Sen. Keaveny’s official Senate website at www.senate.mo.gov/keaveny.