On January 1, 2026, Illinois will implement the Illinois Receivership Act, a new law that modernizes how commercial receiverships are appointed and administered. The Act creates a streamlined, uniform process for protecting, managing, and selling distressed assets—offering creditors faster, clearer remedies through receivership services in Illinois.
The Act provides a comprehensive legal framework for appointing receivers before or after judgment in cases involving:
The law applies to all types of assets, including commercial real estate, residential real estate with more than six units, business assets, and personal property.
Receivers can sell business assets without using the UCC or an Assignment for the Benefit of Creditors, enabling faster liquidation and improved recovery.
Receivers may sell commercial property and residential buildings with more than six units without following the Illinois Mortgage Foreclosure Law, significantly accelerating turnaround times.
Property owners must turn over assets, provide financial records, cooperate fully, and submit to sworn examinations—or face potential contempt.
Why This Matters
For lenders, creditors, and commercial litigators, the Act provides faster remedies, clearer authority, and a more efficient path to recovery, offering powerful new tools for stabilizing distressed assets.