What options do we have if we used up our irs refund?

I would advise that she consider filing a motion to amend their chapter 13 plan. Since there has been a change in financial status and bills, there may be a need to reduce the monthly payment to the bankruptcy plan. That is provided there is still enough to cover priority (secured) creditors.

If you are in a "composition" Chapter 13 Plan, or in other words, your filed Chapter 13 creditors are not being paid in full through the confirmed Chapter 13 Plan, the Chapter 13 Trustee would require that you send in addition to your regular Plan payments the state and federal tax refunds that you receive. This is considered extra "disposable income". If the money has been already spent, then your attorney would need to file a Stipulation and Order with the Trustee allowing you to keep your refunds. Usually for the Trustee to approve this, you need to outline exactly where the refunds went (to food, for car repairs, for living expenses, for unexpected expenses, etc.) and indicate that you are willing to ADD ON these spent funds to the "end" of the Chapter 13 Plan. So if you spent $1,000 in refunds, for example, you would agree to pay an extra $1,000 into your Chapter 13 case during the life of the Plan. As all Plans must complete within 60 months, you may have to sign a Plan amendment raising the payment amount. Once in awhile (rare), the Trustee will waive your having to pay in the refunds and not require you to pay them back at all. I had a case once were the refunds were spent to pay for a funeral, so the Trustee said to not worry about it. So it is all done on a case by case basis it seems. Anyway, your attorney needs to file an Answer to the Motion to Dismiss, explain where the funds went, and try to settle it with the 13 Trustee. If the Trustee refuses, then the Motion will be set for hearing and the Bankruptcy Judge assigned to your case will decide if there are grounds to dismiss the case for failing to turn over all disposable income- or allows you to keep it.