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HB 28

ILLINOIS RECEIVERSHIP ACT

104th Regular Session Introduced by Harry Benton and 5 co-sponsors

Illinois HB 28 establishes comprehensive legal procedures for court-appointed receivers to manage distressed entities' assets, effective January 1, 2026.

Public Act . . . . . . . . . 104-0034
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Bill Summary · HB 28

Legislative bill overview

HB 28 establishes a comprehensive receivership framework for Illinois, creating legal procedures for court-appointed receivers to manage distressed entities' assets and operations. The bill modernizes Illinois's receivership statutes to provide clearer guidelines for when receivership is appropriate and what powers receivers possess during administration of troubled businesses, nonprofits, or other entities.

Why is this important

Receivership is a critical insolvency tool that allows courts to intervene when organizations face financial collapse or mismanagement, protecting creditors, employees, and public interests. Clear receivership laws reduce litigation costs, expedite asset recovery, and provide predictability for stakeholders in financial crises, which is particularly important for protecting consumers and workers in distressed industries.

Potential points of contention

  • Receiver compensation and oversight: The bill must balance fair compensation for court-appointed receivers against concerns about excessive fees that reduce assets available to creditors and stakeholders
  • Entity rights and due process: Questions about how thoroughly entities can challenge receivership appointments and what protections exist against overreach by receivers in managing sensitive operations
  • Small business vs. large entity impact: Whether the receivership framework disproportionately affects small businesses or nonprofits lacking resources to contest appointments, versus major corporations with legal resources

Compiled from official sources — confirm details with the bill’s official record.

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