Bankruptcy / How To File Chapter 7 With No Money

How To File Chapter 7 With No Money: Using Your Tax Refund

Written by Ben Tejes
Updated Feb 12th, 2024
You have no money and may face a garnishment and realize that you may need to file Chapter 7 bankruptcy

Thankfully, one of the most common options to afford bankruptcy attorney fees is to use your tax refund.


Because you get it all at once and it can be difficult to find a $500 bankruptcy attorney near you because everything seems to cost more in 2024.

That said, there can be issues to use your tax refund, so let's explore those together.

Potential Issues When Using Your Tax Refund

One of the biggest challenges that you may face to pay for your bankruptcy with your tax refund is whether you may lose some of your refund if it exceeds your state's cash bankruptcy exemptions.

We can help. 

Ascend specializes in providing free information to help you understand what the cash exemption is in your state and estimate whether you may lose some of the cash.  Check this recent Google review.

So, please provide your information below, and we would love to estimate whether you may lose some of your tax refund if you file bankruptcy.

If it's helpful, we can also estimate how much bankruptcy will cost and get you connected with an attorney for a free evaluation.

The second challenge is the timing of your bankruptcy filing. A bankruptcy attorney can cover this with you in more detail, but if you file bankruptcy and have to disclose the tax refund, it may be considered an asset.

Let's look at alternatives to help afford bankruptcy.

Alternatives to Using Your Tax Refund to File Bankruptcy

That said, there can be issues to use your tax refund, so let's explore what we covered in our cheapest ways to file bankruptcies article.
  1. Find an attorney that will take installments before filing Chapter. bankruptcy.
  2. See whether attorneys in your area can provide a $0 down bankruptcy and take some of the fees after filing bankruptcy.
  3. Request a waiver of the filing fee and cost of the bankruptcy courses.
  4. Some people decide to file bankruptcy without an attorney, but please understand the potential challenges of this option.
  5. Request Legal Aid
  6. Borrow money from a friend or family member to help cover expenses.
Hoping this article is helpful to understand how to file Chapter 7 bankruptcy with no money. Please reach out to us directly at 833-272-3631 if you have any questions whatsoever.