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 for monitoring properties in foreclosure and regulating their maintenance. It also maintains the requirements for creditors to register properties and update their status, while introducing the exemption for those under bankruptcy protection. This change aims to alleviate financial burdens on creditors during bankruptcy proceedings, ensuring they are not penalized with registration fees while the automatic stay is in effect.

Statutes affected:
Introduced: 40:48-2.12