This bill amends current New Jersey law to exempt creditors from paying municipal property registration fees if the property in question is subject to the automatic stay provisions of the federal Bankruptcy Code. Specifically, it modifies Section 3 of P.L.2021, c.444 (C.40:48-2.12s3) to include new language that states municipalities may not impose an annual fee on a creditor if the property is included in a bankruptcy under Chapter 7 or Chapter 13 of the federal Bankruptcy Code, and the automatic stay has not been vacated.

The bill retains the existing framework that allows municipalities to create property registration programs for monitoring properties in foreclosure and to impose fees on creditors. However, it introduces the exemption for creditors under bankruptcy protection, thereby alleviating financial burdens on those creditors while their properties are in a state of legal protection. This change aims to provide relief to creditors during bankruptcy proceedings, ensuring they are not penalized with additional fees while the automatic stay is in effect.

Statutes affected:
Introduced: 40:48-2.12