No, Illinois does not have its own bankruptcy code, and all bankruptcies are handled in the federal bankruptcy court system (though federal bankruptcy proceedings may rely heavily on Illinois law). However, note that individuals and companies in Illinois may choose to wind down a company or liquidate assets outside of the federal bankruptcy system by entering into an assignment for the benefit of creditors (sometimes referred to as an “ABC” process), which is governed by state law. See Black v. Palmer, 15 Ill.App.2d 207, 211 (1st Dist. 1957).
Does Illinois have its own bankruptcy code or should we follow the U.S. Bankruptcy Code? This is for purposes of training a new loss mitigation person.
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