Bill Text: IL SB2221 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Probate Act of 1975. Provides that in any proceeding to sell or mortgage real estate, if the secured creditors cannot be satisfied in full, then the court may not direct the sale without the secured creditor's approval to accept partial satisfaction; and if the secured creditors cannot be satisfied in full, a sale of the property is not considered necessary for the effective administration of the estate. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-07 - Referred to Assignments [SB2221 Detail]

Download: Illinois-2025-SB2221-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2221 Introduced 2/7/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
755 ILCS 5/20-6 from Ch. 110 1/2, par. 20-6
Amends the Probate Act of 1975. Provides that in any proceeding to sell or mortgage real estate, if the secured creditors cannot be satisfied in full, then the court may not direct the sale without the secured creditor's approval to accept partial satisfaction; and if the secured creditors cannot be satisfied in full, a sale of the property is not considered necessary for the effective administration of the estate. Effective immediately.
LRB104 11096 JRC 21178 b
A BILL FOR
SB2221 LRB104 11096 JRC 21178 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Probate Act of 1975 is amended by changing
Section 20-6 as follows:
(755 ILCS 5/20-6) (from Ch. 110 1/2, par. 20-6)
Sec. 20-6. Power of court.) In any proceeding to sell or
mortgage real estate the court may:
(a) investigate and determine all questions of conflicting
and controverted titles arising between any of the parties,
remove clouds from any title or interest involved therein, and
invest the mortgagee or purchaser with a good and indefeasible
title to the property sold or mortgaged;
(b) direct the sale or mortgage of the property free of all
mortgage, judgment or other liens that are due, provide for
the satisfaction of all those liens out of the proceeds of the
sale or mortgage and settle and adjust all equities and all
questions of priority among all interested persons; however,
if secured creditors cannot be satisfied in full, then the
court may not direct the sale without the secured creditor's
approval to accept partial satisfaction; and if the secured
creditors cannot be satisfied in full, a sale of the property
is not considered necessary for the effective administration

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of the estate;
(c) with the assent of the owner of a mortgage lien that is
not due, direct that the property be sold or mortgaged free of
the lien and provide for the satisfaction of the lien out of
the proceeds of the sale or mortgage;
(d) set off the homestead and order the sale of the balance
of the premises, or if the value of the premises exceeds the
exemption and the premises cannot be divided, the court may
order the sale of the whole free of homestead with or without
the consent of the person entitled thereto and shall ascertain
the value of the homestead and shall order that a sum of money
equal to the gross value of the homestead be paid from the
proceeds of the sale to the person entitled thereto;
(e) upon the filing in court of the written consent of the
person entitled to an estate for life or for years, order the
sale or mortgage free of the estate, but the court shall
ascertain the value of the estate and order that a sum of money
equal to the gross value of the estate be paid from the
proceeds of the sale or mortgage to the person entitled
thereto or that a proper proportion of the proceeds of the sale
or mortgage as ascertained by the court be invested and the
income paid to the person entitled thereto during the
continuance of the estate;
(f) direct the sale of the property free of any lien or
claim for lien of this State (except the lien for general
taxes), provide for the satisfaction of the lien or claim for

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lien out of the proceeds of sale according to its relative
priority in respect to other liens to the extent the proceeds
are available, and adjudicate the priority of the State's lien
or claim for lien with respect to all other liens against the
property. The petition must describe the lien of the State.
Not less than 20 days before the hearing on the petition, the
petitioner must notify the Attorney General of the filing of
the petition by delivering or mailing 2 copies of the petition
to the Attorney General's office in Springfield, Illinois. The
petitioner must file proof of the delivery or mailing in the
proceeding in which the estate is being administered. The
Attorney General may intervene and take such action as he
deems expedient to protect the interest of the State.
(Source: P.A. 79-328.)
Section 99. Effective date. This Act takes effect upon
becoming law.