7.9 Receiver's Position After Bankruptcy.

• Jurisdiction: Arizona

Upon the filing of a bankruptcy petition, the receiver or “custodian” (as defined under 11 U.S.C. § 101(10)(A)) has a mandatory duty to turn over control and account to the bankruptcy trustee or, in the case of a Chapter 11 proceeding, to the debtor-in-possession. 11 U.S.C. § 543(b). In this context, the turnover requirement under § 543(b) could effectively force a return of the property to its old managers.

Bankruptcy Code § 543(d), however, does allow the bankruptcy court to “excuse...