The authors of the book Bankruptcy Investing: How to Profit from Distressed Companies (Beard Books, 2002) take a fresh look at this topic. They offer 10 rules for bankruptcy investors, including why you should buy the bonds of a bankrupt company and avoid the stocks, how the absolute priority of claims principle applies, the political nature of Chapter 11 and who the players and their agendas are, conflicts in placing a value on the emerging firm, what financial documents to analyze, categories of claims, and the volatility inherent in distressed and defaulted securities.