Rating:

That said, this book is a very good introduction to bankruptcy law for consumers. It discusses both Chapter 7 and Chapter 13 in some depth, and it has no obvious deficiencies. It’s also a nice quick and easy read, partly because it’s fairly short and well-organized.

The New Bankruptcy Law and You also spends a good deal of time comparing and contrasting pre-2005 bankruptcy law to post-2005 bankruptcy law, and I’m not sure whether that’s a feature or a flaw. It seems to me that a hypothetical reasonable consumer contemplating a bankruptcy of either common flavor (7 or 13; a Chapter 11 is available to individuals, but it’s a post-graduate subject, and uncommon) would have little interest in the law that is no longer available to them.

On the other hand, the use of the compare and contrast with the older law approach does provide a smooth framework for presenting the current version of the law. And since many people filed for bankruptcy prior to 2005, this book does a service to them and those who heard about their experiences by explaining just how much Congress made the process of consumer bankruptcy harder, more dangerous, more expensive, and less effective.

As the book makes clear, the discharge in either a Chapter 13 or a Chapter 7 is still very valuable, and if you need it, the pain of the process is still worthwhile. But Congress certainly tinkered with the pain/value proposition of both common consumer bankruptcy chapters, and not in a way that was consumer-friendly. But if you need penicillin because you have pneumonia, you put up with the pain of the shot; and if you need to file a bankruptcy of either flavor because of overwhelming debt, you put up with the pain to get your fresh start.

The tone of the book is one of its best features. The authors are clearly compassionate to the plight of debtors (the people who used to be called “bankrupts” under the much older version of the law); the authors are also clearly a little cranky with Congress for making honest debtors jump through so many more flaming hoops to obtain their discharge.

Because the authors are experienced in bankruptcy law, they also know what to emphasize. For instance, the section on the full disclosure requirements is excellent, and includes this sentence: “If there are things in your financial life that you don’t want anyone to find out about, please do not file a bankruptcy. If you fail to disclose something of significance, you can end up in jail.”

That’s important for a debtor to hear, for obvious reasons, because it’s the simple truth.

But the thrust of the book is upbeat, and the prose is straightforward, non-technical and easy to read.

I gave the book four stars instead of five because the exemptions section is obsolete, at least in Arizona where I practice, and I suspect elsewhere; that doesn’t really make the book less valuable if you know that you must check out the exemptions that are applicable in the state in which you may file.

Overall, this book will save you sleepless nights, and give you a good overview of the process (the discussion of the First Meeting of Creditors is worth the price of admission) and make your meeting with your bankruptcy lawyer go easier and smoother, because you’ll know why he or she is asking you all those dumb questions.

One last item; obviously, no book or dvd or streaming tape video can substitute for the judgement of your lawyer, because that’s the product of your specific facts and the lawyer’s experience. So don’t think that you can do this stuff by yourself just because you read a good book. There’s no requirement that an individual use an attorney who is board certified or av rated, or AVVO 10 rated, or experienced, or any lawyer at all, to file their own bankruptcy.

But you’re not going to try to take out your own appendix after reading “Your Friend, Your Appendix”, so please don’t think about filing without a lawyer, wherever you may be. Bear in mind that lawyers who file bankruptcy normally use lawyers to file their bankruptcy, because when a lawyer represents himself….Well, you get the idea.

The above does not constitute legal advice and may not be relied upon for legal advice; seek the advice of your own professional in your own jurisdiction prior to making important decisions.

p.s. as I write this postscript, there is a raging debate in Congress over a provision in the Bankruptcy Code that may, after amendment, permit the stripdown of some OR all mortages on residential real property. Will that statute pass? Listen, I’ve practiced bankruptcy law in Phoenix, Arizona for about thirty years, and I’ve watched a long series of amendments to the “New Code” of 1979; and I’ve watched as Congress debated in the past. The 2005 amendments took about a decade to work their way through Congress. So MAYBE the Bankruptcy Code is about to change a lot. And MAYBE it’s not. But if you’re contemplating bankruptcy in Phoenix, Arizona, or anywhere else, you should be aware that the law is currently MAYBE about to change in a way that could be helpful to debtors, IF they qualify and are willing to put up with a Chapter 13 bankruptcy (which makes a root canal look like fun).