Heather Jones is a project manager. She graduated from the University of Albuquerque with a degree in management. During her studies she took the initiative to earn her project management certification $($PMP$)$ and started working with a local IT company. She has been working to become a Certified Scrummaster and specialize in Agile. She has been employed with this IT company for four years.

In October $2022$ Heather was diagnosed with breast cancer $$ three markers. She been on long term disability since then for treatment. Long term disability only pays $66\%$ of her $$75,000$ salary. She never thought to enroll in AFLAC or supplemental disability insurance as she figured she was young, and nothing could go wrong. Hopefully she will be able to go back to work in about three months when her chemotherapy is done.

Heather had always been healthy and had a higher deductible health insurance plan. Her cancer treatment started in October $2022$ and will continue for a few more months. As of December $1,2023,$ she had outstanding medical bills of $$6000$ from $2022$ and then another $$6000$ from $2023($the amount of her deductible each year$).$ She also has $$2100$ in outstanding dental bills as the chemotherapy and radiation of damaged her gums and she lost a few teeth and has had to have partial dentures.

Heather and her ex were high school sweethearts and had a child in high school. She has shared custody with her ex$,$ but her income has always been higher, and she has had to pay child support of $$300/$month plus $50\%$ of her child$$s medical bills under a medical support order. She s behind $$3000$ in child support and $$2500$ in medical bills for her child under the support order for orthodontia and glasses her child needed.

Heather bought a residence before she was diagnosed with cancer. The house was barely within her means, but she only saw her career moving up and was not worried at the time. She wanted to live in the newer suburbs for better schools for her child. Her residence cost $$390,000$ five years ago, appraises for $$410,000,$ and she has a mortgage balance of $$385,000$ as she has been a little behind.

Heather also is in her $7$th year of students loans and her balance is $$29000.$ She has an IRA balance of $$600,000$ as she inherited her deceased father$$s retirement that rolled into her IRA about $3$ years ago. She also has $$24000$ in her work retirement account.

Heather$$s mom setup a revocable discretionary spendthrift trust that her mom owns and is the trustee for. The trust has $$100,000$ in it that Heather is a $25\%$ beneficiary of if the trustee elects to distribute.

Heather has contributed to her child$$s $529$ plan every year except $2022$ and $2023.$ Her ex$-$husband is listed as the owner with her child as the beneficiary. Currently it has a balance of $$10,000.$

Heather has $$600$ in the bank, her wedding ring she made into a necklace valued at $$1350,$ and $$18000$ in credit card debt as she has used her credit card to pay for food and daycare this last fifteen months as her mortgage payment takes most of her disability income.

She bought a vehicle in September $2022$ for $$19000,$ financing $100\%,$ and it has a balance of $$17,500,$ but worth only $$17000.$ The loan is secured by the car.

In $2022$ Heather withdrew $$8000$ from her IRA for bills. She did not realize that there would be taxes and penalties owed to the IRS in the amount of $$3500.$ She has not been able to pay that yet.

The costs of the bankruptcy are $$700.$

Finally, Heather and her college roommate are equal general partners in Tech Services. Heather has not been able to work on the side in it this last year and the partnership has struggled. Income was zero this last year after all expenses but it has $$1200$ in the partnership bank account and owns $$40000$ in equipment and furniture that is owned by the partnership.

$1.$ Create a list of assets $$ what goes into the estate and what is exempt. Make sure to identify rationale for what is exempt. Might have to dig a little to learn what some of the things are.

$2.$ Create a list of debts $$ list them in the order they have priority. Who gets what? What is dischargeable and what isn$$t$?$