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Making the Switch

When Alphonzo Kershaw fell behind on the mortgage of a second home last year, he filed for Chapter 13 bankruptcy, which would prevent a foreclosure and enable him to pay back more than $40,000 in past due mortgage payments and real estate taxes over a five-year period. But had he filed for Chapter 7 bankruptcy protection from the start, he would have lost the house, but walked away from the entire debt.

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