What context can I use each word in?
Learn when and how to use these words with these examples!
receivership
Example
The company was put into receivership after it failed to meet its financial obligations. [receivership: noun]
Example
The receiver was tasked with managing the company's assets during the receivership period. [receiver: noun]
liquidation
Example
The company went into liquidation after it was unable to pay its debts. [liquidation: noun]
Example
The liquidator was responsible for selling off the company's assets to pay its creditors. [liquidator: noun]
Good things to know
Which word is more common?
Liquidation is more commonly used than receivership in everyday language. Liquidation is often associated with the closure of a company and the sale of its assets, which is a more common occurrence than receivership, which involves the appointment of a receiver to manage a company's assets.
What’s the difference in the tone of formality between receivership and liquidation?
Receivership and liquidation are both formal terms used in legal and financial contexts. However, liquidation is more commonly used in everyday language and may be more familiar to non-native speakers.
