Bill > S3999

This bill modifies existing New Jersey law regarding property registration fees for properties in foreclosure by exempting creditors from paying these fees under specific bankruptcy circumstances. Currently, municipalities can require creditors to register properties in foreclosure and pay an annual fee of up to $500 per property, with an additional $2,000 fee if the property is vacant or abandoned. The bill now stipulates that a creditor will not be required to pay these annual fees if the property is subject to an automatic stay under either Chapter 7 or Chapter 13 of the federal Bankruptcy Code, and this automatic stay has not been vacated. The automatic stay is a legal provision that temporarily prevents creditors from pursuing collection activities or foreclosure proceedings against a debtor who has filed for bankruptcy. This change provides financial relief to creditors during bankruptcy proceedings by removing the municipal property registration fee burden during the period when legal actions are paused. The bill aims to reduce financial strain on creditors navigating bankruptcy while maintaining the municipality's broader property registration and monitoring objectives.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S3999