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Bill > A3237


NJ A3237

NJ A3237
Exempts creditor from paying municipal property registration fee if property is subject to automatic stay under federal Bankruptcy Code.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill exempts certain creditors from payment of a property registration fee for as long as the property remains subject to the automatic stay provision of the federal Bankruptcy Code. Current law, section 3 of P.L.2021, c.444 (C.40:48-2.12s3), authorizes a municipality, by ordinance, to require a foreclosing creditor to register property, and to impose an annual fee on the creditor for registering the property. Under the bill, a creditor who has sought the protection of the federal Bankruptcy Code, and who is protected by the automatic stay provision of the federal Bankruptcy Code, would be excused from the payment of the property registration fees authorized by section 3 of P.L.2021, c.444 (C.40:48-2.12s3).

AI Summary

This bill exempts creditors from paying municipal property registration fees if the property is currently protected by the "automatic stay" provision of the federal Bankruptcy Code. The automatic stay is a legal protection that prevents creditors from taking action against a debtor or their property once the debtor files for bankruptcy. Previously, municipalities could require creditors who were foreclosing on properties to register those properties and pay an annual fee. However, under this bill, if a creditor has filed for bankruptcy and the property is subject to the automatic stay, they will no longer be required to pay these registration fees for as long as that protection remains in effect.

Committee Categories

Housing and Urban Affairs

Sponsors (3)

Last Action

Introduced, Referred to Assembly Housing Committee (on 01/13/2026)

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