So this is what happened. We arrived with our soon to expire passport, our birth certificates, driver's licenses. and written documentation concerning the requirements for closed loop itineraries,
We held our breath, as we handed over our passports. The person checking us in, took a picture of our passports and handed them back to us. That was it! She never even made a comment about them expiring in the next month.
So yes, you can cruise to Bermuda from NJ with a passport that is valid for less than 6 months..
We arrived home on Sunday, and on Monday sent in the paperwork to renew the passports.
Thanks again, for everyone's advice, and Happy cruising!