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Bill

S 2145

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

2026-2027 Regular Session Introduced by Paul Moriarty and 1 co-sponsor

New Jersey bill exempts creditors from municipal property registration fees when bankruptcy automatic stay prevents debt collection on the property.

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee
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Bill Summary · S 2145

Legislative bill overview

S 2145 would exempt creditors from paying municipal property registration fees when a property is subject to an automatic stay under the federal Bankruptcy Code. The automatic stay is a legal protection that halts creditor collection efforts once bankruptcy is filed. This exemption would apply in New Jersey municipalities.

Why is this important

Property registration fees are typically mandatory costs imposed by municipalities on creditors holding liens or claims against properties. If creditors must pay these fees even when bankruptcy halts collection activities, they face costs on claims they cannot pursue. This bill aims to reduce the financial burden on creditors in situations where federal bankruptcy law has already suspended their enforcement rights.

Potential points of contention

  • Creditor protection vs. municipal revenue: Municipalities rely on registration fees as revenue sources; exempting creditors could reduce funding for local services and operations
  • Scope of automatic stay interpretation: Disagreement over whether current law already implies such exemptions or if explicit legislation is necessary
  • Unequal treatment concerns: Some may argue exempting creditors while other parties still pay creates fairness issues, particularly for municipal lienholders and other stakeholders
  • Administrative clarity: Questions about implementation—determining which properties qualify and tracking exemptions could complicate municipal recordkeeping

Compiled from official sources — confirm details with the bill’s official record.

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