If your New Jersey home is under water, then you may want to consider a Chapter 13 bankruptcy. If the value of your home is less than your first mortgage than it is possible to “strip-off” all other mortgages and/or liens against the property including, arrears on condo association dues.
This is often a way for people to save their homes because often they can modify their 1st mortgage allowing them to be left with a mortgage payment they can afford . You do not have to have a modification on the 1st mortgage in order to strip-off second and third mortgages in bankruptcy. In fact, through the new Loss Mitigation program available in the United States Bankruptcy Court of the District of New Jersey, you can apply for a loan modification on the 1st mortgage while proposing to strip-off the second mortgage. In most circumstances the mortgage companies due not fight the value listed in the petition because homes are so far under water the current economy.
The suggestions above can all be done while eliminating credit card debts while in the Chapter 13 bankruptcy. You should consult with an attorney to find out if these options are available to you as strip-offs do depend on the value of your assets and your annual income.