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 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 while adding this new exemption. This change aims to alleviate the financial burden on creditors who are navigating bankruptcy proceedings, ensuring they are not penalized with additional fees during this challenging time. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 40:48-2.12