tips to avoid bankruptcy during divorce law office of loomis & greene evans

When looking at the most common reasons for a bankruptcy, the list is relatively short: medical expenses, loss of job, overspending, foreclosure, unexpected emergencies, and divorce. Bankruptcy is common with divorce because oftentimes one spouse makes significantly more than the other, so when a divorce occurs, the income level drops significantly. Furthermore, depending on the length of the divorce process, you could end up spending thousands of dollars just to make it final.

The Law Offices of Loomis & Greene near Evans represents both those who are filing for bankruptcy, as well as those who are filing for divorce. Hence, we are the perfect divorce and family law firm for you needs. In this blog post, we’ll go over some tips on how to avoid bankruptcy when you file for a divorce. Contact us today to get started!



One of the biggest mistakes people make during a divorce is refusing to talk to their spouse. However, now is the time when communication should be prioritized since both of you are deciding your future. After the divorce, you are free to cutoff communications (unless children are involved, of course). The more you and your spouse can work out ahead of time in terms of property division, alimony, and other splitting up of assets, the quicker your divorce will go and the less costly it will be.

Being honest about where you are at financially is crucial as well. Tell your spouse that you are unsure if you can make it in the beginning financially without filing divorce. You never know. Perhaps a temporary agreement can be worked out between the two of you to help you stay solvent.

Consider Consulting a Financial Expert

Oftentimes, bankruptcy can be avoided with some creative financial maneuvers. For example, with a change in income, you often can put a hold on student loan payments, renegotiate existing loans with the bank for lower payments and terms, and use your personal retirement savings, such as from your 401k if need be. Remember, if you file bankruptcy, you could be required to give up many of these assets anyway in order to pay debtors, so it could benefit you to save your credit and pay down debt rather than declare bankruptcy. A financial advisor can help you determine which course is right for you.

Consider Consulting a Bankruptcy Attorney

There are some people who file bankruptcy who shouldn’t and then there are those who don’t file for bankruptcy and should have. How do you know which court do you stand? With the help of an expert bankruptcy team, you can get guidance and advice on where you stand. Also, a top-notch bankruptcy team, such as The Law Offices of Loomis & Greene near Evans, can explain to you all of the nuance in bankruptcy law, such as what is exempt from bankruptcy. There are debts that cannot be forgiven even when you file for bankruptcy. Hence, if you are filing bankruptcy specifically to avoid these debts, you are wasting your time and money:

  • Alimony
  • Child support
  • Money owed to government agencies
  • Student loans
  • Court fees from your divorce

Filing for Bankruptcy as Your Last Resort

If you absolutely must file for bankruptcy, then do it either before or after the divorce, not at the same time. If you file for bankruptcy during a divorce, you will most likely extend your divorce process, which could cost you a lot more money in legal fees and court fees. Part of a divorce is dividing up assets. However, once you file bankruptcy all of your financials are put on hold until the bankruptcy court can go through your assets and see who can be compensated and who can’t. This means the divorce court won’t be able to touch your assets either, so dividing them will be impossible, especially since most likely some of your assets may be taken as collateral to pay off bankruptcy loans.

Furthermore, states have different laws regarding if you file for divorce jointly or individually. Filing jointly may have some benefits when it comes to property division, and it is normally cheaper if you file jointly since you won’t have twice the court fees for individual filings. However, if may be advantageous to file individually after the property has been divided in the divorce. Yor top-notch bankruptcy attorney can help you with these types of decisions.


Having someone in your court when you have to go to court that knows the legal process inside and out and has been there hundreds of times in invaluable so you get the best terms possible. Bankruptcy is not as straightforward as it seems, with recent laws that add in exemptions and other caveats. Furthermore, when you are going through a divorce or on the other side of one, you are still focusing on recovering, so the last thing you want is to have the stress of a DIY bankruptcy over your head.

Let the experts at The Law Offices of Loomis & Greene near Evans offer you expert legal advice and help you begin fresh, both after your divorce and your bankruptcy. Besides being a superb bankruptcy firm, we also offer representation for divorce proceedings. Thus, if you need both divorce and bankruptcy advice and representation, why not hire just one lawyer instead of two?

The Law Offices of Loomis & Greene can answer all of your questions. Call us today for a free consultation!