summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill establishes the "Medical Debt Homestead Protection Act." Under the bill, any person aged 18 or over, married or single, who resides within the State may hold as a homestead exempt from attachment, execution, and forced sale, as result of a judgement obtained for the payment and satisfaction of a medical debt, any one of the following: an interest in real property upon which exists a dwelling house in which the person resides; an interest in a condominium or cooperative in which the person resides; or a manufactured home, including the land on which the manufactured home is situated. Only one homestead exemption at a time may be held by a person under the bill.
AI Summary
This bill, known as the "Medical Debt Homestead Protection Act," aims to shield individuals and families from losing their homes due to unpaid medical bills. It allows any resident of the state aged 18 or older, regardless of marital status, to claim a homestead exemption, meaning their primary residence cannot be seized and sold to satisfy a judgment for medical debt. This protection applies to a house where the person lives, a condominium or cooperative where they reside, or a manufactured home including the land it sits on. Importantly, only one such exemption can be claimed per person or married couple at any given time, and the law will take effect 90 days after being enacted. The legislature recognizes that medical debt can be a significant financial burden, often leading to bankruptcy and the potential loss of a home, and this act seeks to prevent that outcome by protecting these essential assets.
Committee Categories
Business and Industry
Sponsors (4)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A423 |
| BillText | https://pub.njleg.gov/Bills/2026/A0500/423_I1.HTM |
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