Owning your home does not prevent a New Jersey resident from filing either a chapter 7 or a chapter 13 bankruptcy. So put that myth right out of your head and don't let it keep you from considering bankruptcy as an option.
The real question you need to ask is whether filing a chapter 7 bankruptcy could result in your losing your home to sale by the trustee. The answer to that, for the vast majority of South Jersey residents, is NO. Here's why.