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 provision 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 for monitoring properties in foreclosure, including requirements for creditors to register and maintain properties. However, it introduces the new provision that protects creditors from incurring registration fees during bankruptcy proceedings, thereby providing financial relief to those facing foreclosure while under the protection of federal bankruptcy laws.

Statutes affected:
Introduced: 40:48-2.12