The Road Out of Debt + Website

A practical guide to getting out of debt and understanding the option of personal bankruptcy

The current credit and financial crises have prompted Joan Feeney, a preeminent Massachusetts Bankruptcy Judge, and Theodore Connolly, a Finance and Bankruptcy Attorney, to write a book that will help people handle their financial troubles. The Road Out of Debt seeks to assist those considering bankruptcy by demystifying the bankruptcy process and explaining what you can expect to gain (or lose) from it.

With the insights of both a bankruptcy judge and a bankruptcy lawyer, you'll be able to determine when it's best to avoid bankruptcy, when you should seek bankruptcy protection, and, most importantly, how best to work through the bankruptcy process, if you so choose. With millions of Americans personally facing dire financial situations, job losses, home foreclosures, and other major financial challenges, no book could be more timely.

• An exceptional resource for anyone contemplating bankruptcy or otherwise trying to figure out how to handle their debt
• Puts the bankruptcy process in perspective and reveals specific steps to follow
• Discusses how to decide whether or not bankruptcy is the right path for you
• Written by a well-respected bankruptcy judge and bankruptcy attorney

As more people find themselves entering financial difficulties, an increasing number of them will need information to help them through these problems. The Road Out of Debt provides you with the serious solutions needed to overcome a personal financial crisis.

Acknowledgments xi

Preface xiii

Introduction 1

Part I A Road Map to Debt Relief

Chapter 1 Getting Started 13

Chapter 2 Negotiating Your Way Out of Debt 23

Chapter 3 Fighting Back 33

Chapter 4 Budgeting Your Way Out of Debt 47

Chapter 5 The Danger of Quick Fixes 65

Chapter 6 Debt Counselors: How to Tell the Bad from the Good 85

Part II Finding Your Way Using Nonbankruptcy Solutions

Chapter 7 The Way Out of Credit Card, Medical, and Student Loan Debt 103

Chapter 8 Foreclosure Basics and Rescue Scams 123

Chapter 9 Sizing Up Your Mortgage Debt 139

Chapter 10 The Way Out of Mortgage Debt 153

Chapter 11 The Way Out of Auto Debt 167

Chapter 12 The Way Out of Tax Debt 185

Part III When to Take the Bankruptcy Route

Chapter 13 Is Bankruptcy Right for You? 209

Chapter 14 21 Bankruptcy Myths 217

Chapter 15 Overview of Bankruptcy Types 229

Chapter 16 Understanding the Bankruptcy Process 237

Part IV Road Trips: Six Case Studies In Bankruptcy

Chapter 17 Two Trips through Chapter 7 Bankruptcy 253

Chapter 18 Two Trips through Chapter 13 Bankruptcy 277

Chapter 19 A Trip through Chapter 11 Bankruptcy 301

Chapter 20 A Trip through Chapter 12 Bankruptcy 317

Conclusion: The Road Worth Taking 325

Appendix A Helpful Resources 327

Appendix B Bankruptcy FAQs 337

Notes 347

Glossary 349

About the Authors 369

Index 371

JOAN N. FEENEY is a highly respected, preeminent judge on the United States Bankruptcy Court for the District of Massachusetts and former chief judge of the court. She has considerable experience in bankruptcy and commercial law and has written extensively on these subjects. Among her many activities, Judge Feeney is the co-Chair of the Joint Bankruptcy Court/Boston Bar Association Task Force on Financial Literacy; coauthor of the West treatise Bankruptcy Law Manual; a Fellow of the American College of Bankruptcy; President-elect of the National Conference of Bankruptcy Judges; and recipient of the 2005 Boston Bar Association Haskell Cohn Award for Distinguished Judicial Service.

THEODORE W. CONNOLLY is a highly respected finance and bankruptcy attorney at one of the largest law firms in Boston, Edwards Angell Palmer & Dodge LLP, and has extensive experience in resolving financial difficulties involving corporations and individuals. Connolly clerked for the Honorable William C. Hillman at the United States Bankruptcy Court in Boston.

The recent credit and financial crises have probably affected you in one way or another, and prompted authors Joan N. Feeney, a preeminent Massachusetts bankruptcy judge, and Theodore W. Connolly, a highly respected finance and bankruptcy attorney, to create a book to help you understand and overcome the financial problems you may currently face.

Written in a straightforward and accessible style, The Road Out of Debt walks you through the steps you need to take in order to resolve your debts and rebuild your finances. Initially, it discusses your options for avoiding bankruptcy and managing your specific debts. It then moves on to examine when filing for bankruptcy might be the right decision. Along the way, you'll quickly discover how bankruptcy really works, so you can effectively navigate through it either on your own or with the help of a lawyer.

With millions of Americans personally facing dire financial situations, job losses, home foreclosures, and other major financial challenges, no book could be more timely. Divided into four comprehensive parts, this reliable resource:

• Will help you assess your debt situation and achieve financial freedom either with or without bankruptcy
• Addresses how to handle specific debts, including credit card, mortgage, medical, student loans, auto, and tax
• Warns you about the dangers of debt quick fixes and scams
• Puts the bankruptcy process in perspective and discusses the different types of bankruptcy options available to you
• Presents stories of hypothetical bankruptcies based on real individuals, so you can understand and learn more about what can happen in a bankruptcy case

In addition to the information presented here, much more—including links to many of the resources mentioned throughout the book and additional checklists for evaluating your financial situation and dealing with debt—can be found at wiley.com/go/roadoutofdebt.

Filled with the insights of both a bankruptcy judge and a bankruptcy lawyer, The Road Out of Debt will put you in a better position to face your personal financial problems and deal with them. With this book as your guide, you'll quickly learn when it's best to avoid bankruptcy, when you should seek bankruptcy protection, and, most important, how to work through the bankruptcy process if you choose to take that path.

The ROAD out of DEBT

The recent credit and financial crises have probably affected you in one way or another, and prompted authors Joan N. Feeney, a preeminent Massachusetts bankruptcy judge, and Theodore W. Connolly, a highly respected finance and bankruptcy attorney, to create a book to help you understand and overcome the financial problems you may currently face.

Written in a straightforward and accessible style, The Road Out of Debt walks you through the steps you need to take in order to resolve your debts and rebuild your finances. Initially, it discusses your options for avoiding bankruptcy and managing your specific debts. It then moves on to examine when filing for bankruptcy might be the right decision. Along the way, you'll quickly discover how bankruptcy really works, so you can effectively navigate through it either on your own or with the help of a lawyer.

With millions of Americans personally facing dire financial situations, job losses, home foreclosures, and other major financial challenges, no book could be more timely. Divided into four comprehensive parts, this reliable resource:

• Will help you assess your debt situation and achieve financial freedom either with or without bankruptcy
• Addresses how to handle specific debts, including credit card, mortgage, medical, student loans, auto, and tax
• Warns you about the dangers of debt quick fixes and scams
• Puts the bankruptcy process in perspective and discusses the different types of bankruptcy options available to you
• Presents stories of hypothetical bankruptcies based on real individuals, so you can understand and learn more about what can happen in a bankruptcy case

In addition to the information presented here, much more—including links to many of the resources mentioned throughout the book and additional checklists for evaluating your financial situation and dealing with debt—can be found at wiley.com/go/roadoutofdebt.

Filled with the insights of both a bankruptcy judge and a bankruptcy lawyer, The Road Out of Debt will put you in a better position to face your personal financial problems and deal with them. With this book as your guide, you'll quickly learn when it's best to avoid bankruptcy, when you should seek bankruptcy protection, and, most important, how to work through the bankruptcy process if you choose to take that path.