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Typically, for most clients, a chapter 7 bankruptcy is the first option. However, occasionally, certain debtors will not pass the means test and are required to file a Chapter 13. For some debtors a chapter 13 is the first option. These would include circumstances where the debtors have a completely unsecured second mortgage and/or where the debtor has arrears on their first mortgage. Chapter 13 bankruptcy allows the debtor an opportunity to strip their completely unsecured second mortgage from their primary residence and also allows a debtor to cure arrears.
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