No court shall order the sale of any assets of the receivership until a receiver has reported to the court in writing that he has mailed such notices to such creditors at least five days prior to the filing of such report, except that the court may at any time permit the sale of perishable or seasonable goods when necessary to preserve the estate, or may permit the receiver to conduct the business for which he is a receiver as a going business and to sell in the usual course of such business.
§ 8.01-596.No sale prior to such notification; exceptions.
Chapter 22. Receivers, General and Special · Article 2. Special Receivers · Last amended 1977 · Last verified July 16, 2026
In one sentenceThis section bars a court from ordering the sale of receivership assets until the receiver certifies in writing that creditor notices went out at least five days earlier, though the court may still allow the sale of perishable goods or ordinary-course sales of a business the receiver operates as a going concern.
Full Text of § 8.01-596
Plain-English Summary
The creditor notice required by § 8.01-595 is meant to happen before assets disappear, not after. This section enforces that sequence: no court may order the sale of any receivership assets until the receiver has reported to the court in writing that he mailed the required notices to creditors, and that report must be filed at least five days after the notices went out.
Two practical exceptions keep the rule from working against the estate it protects. The court may permit the sale of perishable or seasonable goods at any time it is necessary to preserve the estate, since waiting five days could destroy the asset's value entirely. And the court may let the receiver run the business as a going concern and sell in its usual course, so ordinary commercial operations do not grind to a halt while creditor notice catches up.
Frequently Asked Questions
What must the receiver report before a court can order an asset sale?
That he has mailed the required notices to creditors, at least five days prior to the filing of that report.
What form must the receiver's report take?
A written report to the court.
What exception applies to perishable or seasonable goods?
The court may permit their sale at any time it is necessary to preserve the estate, without waiting for the five-day notice period.
What exception applies to an ongoing business?
The court may permit the receiver to conduct the business as a going business and to sell in the usual course of that business.
Which section's notice requirement does this section enforce?
The creditor-notice requirement of § 8.01-595.
Amendment History
Code 1950, § 8-740; 1977, c. 617.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as: virginia receiver asset sale notice requirementreceivership sale of perishable goods virginiareceiver going business sale virginia