Sandra is an independent graphic designer. She works on a job-to-job basis, accumulating funds from a job, then living on that money until she finds the next gig.Sandra's last job brought in income of $200,000 which she has been living on for the last year. She still has $50,000 on hand, and an offer for a new job which will start in the near future. In connection with a previous project, Sandra signed a promissory note for $250,000 in favor of Lone Wolf. She defaulted on that note and Lone Wolf is now suing her for fraud. She also owes $30,000 in back taxes. Sandra's current assets consist of the $50,000 cash remaining from her last job, computer equipment used for her work, her clothing, personal effects and an heirloom necklace inherited from her grandmother.

Questions:

How will Sandra benefit from filing chapter 7?

When would be the best time for her to file?

Can Sandra keep the cash, computer equipment and necklace if she files for chapter 7?

Can she discharge the debt owed to Lone Wolf?

Can she discharge the back taxes?