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 under the federal Bankruptcy Code. Specifically, it modifies Section 3 of P.L.2021, c.444 (C.40:48-2.12s3) to state that a municipality may impose an annual fee on creditors required to register properties in foreclosure, but this fee will not apply 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 and impose fees on creditors for properties undergoing foreclosure. However, it introduces the new provision that provides financial relief to creditors who are navigating bankruptcy proceedings, thereby ensuring that they are not burdened with additional fees while under the protection of the Bankruptcy Code. This change aims to alleviate some of the financial pressures on creditors during the foreclosure process when properties are in bankruptcy.

Statutes affected:
Introduced: 40:48-2.12