All Roll Calls
Yes: 234 • No: 1
IllinoisHB0028104th General Assembly (2025–2026)HouseWALLET
ILLINOIS RECEIVERSHIP ACT
Sponsored By: Jawaharial Williams (Democratic)
Became Law
judiciary - civilassignmentsjudiciary
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 2 benefits, 1 costs, 6 mixed.
Owner duties, 14-day lists, and penalties
Owners must help the receiver, protect and turn over property, give records and passwords, and sit for sworn exams if subpoenaed. Within 14 days, owners must file and give the receiver lists of all receivership and exempt property with locations and values, and a list of creditors with amounts, security, and dispute status. If someone knowingly fails these duties, the court can award actual damages and attorney fees, hold them in civil contempt, or issue orders like an injunction or constructive trust.
Contracts and renter protections in receivership
A receiver can assume or reject an owner’s executory contracts only by court order. If the receiver does not get approval before the case ends, the contract is treated as rejected; doing work before approval is not assumption. A receiver cannot reject an unexpired residential lease when the tenant lives there as a primary home and in other protected cases. If a lease is rejected, the tenant must file any damage claim by the court’s claims deadline or within 30 days after the court approves the rejection.
Fees, reports, and ending a receivership
Receivers may have to file interim reports showing money in and out, property handled, and fees. With court approval, a receiver can hire attorneys, accountants, brokers, and others; hourly professionals must file itemized bills. Reasonable receiver and professional fees are paid from receivership funds; if there is not enough money, the court can order the requester or a person whose conduct justified appointment to pay. Courts can remove or replace a receiver, end a wrongful receivership, and assess fees, expenses, and damages for a bad‑faith appointment. When work is done, the receiver files a final report; after approval and distribution, the receiver is discharged and court oversight ends. The receiver must keep business records and record a real‑property notice. You must get the appointing court’s permission to sue a receiver or their professional, and discovery needs a court order.
Receivers take control and pause actions
A receiver can collect, control, and run the business, and demand payment or turnover of property that belongs to the receivership. The appointment order pauses most efforts to seize or enforce against receivership property. Some actions are not paused, like steps to perfect a lien, criminal cases, regulatory actions (not money judgments), tax matters, and some financial‑contract rights. If someone knowingly breaks the pause, the court can void the act, award damages and attorney fees, and hold the person in contempt. Deadlines to act are tolled while the stay blocks action.
How creditors file claims and get paid
The receiver must notify creditors and set a claims deadline at least 60 days after the notice. Late claims usually do not share in payments unless the court allows it. A proof of claim must state who you are, the amount and reason, any collateral, include records, and be signed under penalty of perjury. Courts pay perfected secured creditors by priority under state law and pay allowed unsecured claims pro rata as ordered; subordination agreements are enforced as under Illinois law. A secured lender who seeks a receiver does not become a mortgagee in possession or an agent, and does not lose other enforcement rights just by asking for a receiver.
Selling receivership property and clearing liens
With court approval, a receiver can sell property outside the ordinary course. Sales are free and clear of the appointing party’s lien, junior liens, and redemption rights; a senior lien stays unless the senior lender consents. Wiped‑out liens attach to the sale money with the same priority, and a good‑faith buyer keeps title unless the order was stayed before the transfer. On appointment, the receiver is treated like a lien creditor; for real estate, that status depends on recorded notice and the recording rules. Property the receiver or owner gets after appointment is still subject to prior security agreements, and recording a receivership notice gives legal notice to later buyers and lenders.
Home foreclosures use old rules
This law does not cover residential home foreclosures. Cases about a home follow the Illinois Mortgage Foreclosure Law. Homeowner protections in that law stay in place.
Where this law applies and cross‑state cases
This law covers receiverships for real property and related personal property, personal property and fixtures, and non‑individual entities. It does not replace special receivership laws (like banking or mortgage‑foreclosure statutes), but a government unit can opt in if not inconsistent. Illinois courts can appoint an out‑of‑state receiver to handle Illinois property and can give effect to other states’ orders. Courts should interpret this law to keep rules uniform across states, and cases started before the effective date keep the old rules. The law modifies how e‑signatures apply here but keeps key federal protections, and a specific civil‑procedure section does not apply. It also provides shared definitions for key terms used throughout.
When courts can appoint receivers
A court can appoint a receiver before judgment to stop waste or loss, after judgment to enforce it, for troubled businesses, and during redemption after a sale or foreclosure. In emergencies, a court can act without notice, and may require the requester to post security for damages if the appointment is later found wrongful. Receivers must be conflict‑free and usually post a bond or other security the court approves. Courts give notice and a chance to be heard for most orders, but can act fast in urgent cases; real‑property sales need owner notice and publication. The appointing court has exclusive control over the receiver and the receivership.
Sponsors & Cosponsors
Sponsor
Jawaharial Williams
Democratic • House
Cosponsors
Camille Y. Lilly
Democratic • House
Daniel Didech
Democratic • House
Harry Benton
Democratic • House
Rick Ryan
Democratic • House
Robert F. Martwick
Democratic • Senate
Roll Call Votes
Senate vote • 5/22/2025
Third Reading - Passed;
Yes: 58 • No: 0
Senate vote • 5/1/2025
Do Pass Judiciary;
Yes: 7 • No: 0
House vote • 4/8/2025
Third Reading - Short Debate - Passed
Yes: 116 • No: 0
House vote • 3/5/2025
House Floor Amendment No. 2 Recommends Be Adopted Judiciary - Civil Committee;
Yes: 17 • No: 0
House vote • 2/26/2025
House Floor Amendment No. 1 Recommends Be Adopted Judiciary - Civil Committee;
Yes: 18 • No: 0
House vote • 2/19/2025
Do Pass / Short Debate Judiciary - Civil Committee;
Yes: 18 • No: 1
Actions Timeline
Public Act . . . . . . . . . 104-0034
8/1/2025HouseEffective Date January 1, 2026
8/1/2025HouseGovernor Approved
8/1/2025HouseSent to the Governor
6/20/2025HousePassed Both Houses
5/22/2025HouseThird Reading - Passed; 058-000-000
5/22/2025SenatePlaced on Calendar Order of 3rd Reading **
5/20/2025SenatePlaced on Calendar Order of 3rd Reading May 13, 2025
5/8/2025SenateSecond Reading
5/8/2025SenatePlaced on Calendar Order of 2nd Reading May 6, 2025
5/1/2025SenateDo Pass Judiciary; 007-000-000
5/1/2025SenateAssigned to Judiciary
4/23/2025SenateReferred to Assignments
4/10/2025SenateFirst Reading
4/10/2025SenateChief Senate Sponsor Sen. Robert F. Martwick
4/10/2025SenatePlaced on Calendar Order of First Reading April 10, 2025
4/9/2025SenateArrive in Senate
4/9/2025SenateAdded Co-Sponsor Rep. Camille Y. Lilly
4/8/2025HouseAdded Chief Co-Sponsor Rep. Harry Benton
4/8/2025HouseAdded Chief Co-Sponsor Rep. Rick Ryan
4/8/2025HouseThird Reading - Short Debate - Passed 116-000-000
4/8/2025HouseAdded Chief Co-Sponsor Rep. Daniel Didech
4/4/2025HouseChief Sponsor Changed to Rep. Jawaharial Williams
4/4/2025HousePlaced on Calendar Order of 3rd Reading - Short Debate
3/18/2025HouseHouse Floor Amendment No. 2 Adopted
3/18/2025House
Bill Text
Engrossed
Enrolled
House Amendment 1
House Amendment 2
Introduced