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Sudden death and family finances

A recent piece on the CNBC website addresses an important issue that many people tend to not think about: the impact of a sudden death on family finances. Writer Carmen Reinicke uses the celebrity suicides of Kate Spade and Anthony Bourdain as her jumping off point to discuss what attorneys, financial advisors and therapists say what you should do if you are faced with a sudden death in the family.

To read the details see Sudden deaths like those of Kate Spade and Anthony Bourdain can devastate family finances

Here is what they recommend:

Get organized and find an expert

Address your mental as well as your financial health

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Facebook users file to appear in Cambridge Analytic bankruptcy case

“Data Breach Plaintiffs” filed a notice this past week to appear in the company’s New York bankruptcy. They want their claim to be seen as a class action suit on behalf on 87 million Facebook users who had their personal information taken without their permission.
The attorney for the plaintiffs,  Michael Etkin, a partner in the bankruptcy firm of Lowenstein Sandler LLP told Bloombeg News,  “Nothing is off the table, and what we do will be a function of developments in the class actions as well as in the U.S. bankruptcy and insolvency proceedings in the U.K.”
The suits were brought in Delaware District Court and seek damages for what the group says were invasion of privacy and increased risk of theft and data breaches.
The lead plaintiff Ben Redmond, a California resident, told Bloomberg damages should be more than $1,000 per violation. He has been using Facebook since at least 2007, and says he didn’t agree to using an application called thisisyourdigitallife.com, a personality quiz through which the alleged violations occurred. The case also represents plaintiffs in Ohio, Texas and Illinois.
Bloomberg also reports another suit was filed by Craig Skotnicki, who makes similar claims about the quiz, saying his user data was shared because a friend had logged into the app. If Facebook is found to have violated a 2011 consent decree over its handling of user data, it could face fines of more than $40,000 a day per violation, according to his complaint.

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Court rules troubled Oregon Dairy can retain bankruptcy protections

A U.S. Bankruptcy Judge Fredrick Clement ruled that a controversial dairy in Oregon can keep its bankruptcy protections, preventing a liquidation sale sought by the dairy’s main creditor, Rabobank.

Lost Valley Farm won’t have to auction off its cattle and instead will be able to sell them along with the farm and its equipment.

Rabobank sought to foreclose on the dairy herd in an attempt to get back some of the $67 million owed the bank by Lost Valley, but the owner Greg te Velde filed for Chapter 11 bankruptcy to protect himself from creditors like the bank.

Patrick Criteser, The CEO of Tillamook County Creamery Cooperative of which Lost Valley is a member terminated the dairy’s contract back in May because the dairy wasn’t paying its debts and claimed it had violated quality standards more than 60 times by supplying milk with high bacteria levels.

The bank cited wastewater management problems at the dairy which will require expensive remediation, such as emptying and rebuilding manure lagoons, which will run close to $400,000. It also noted te Velde has a substance abuse problem which he acknowledges but says once the business has been stabilized he will be entering a substance abuse program.

Te Velde responded to the wastewater management problems saying he in the process of upgrading the lagoons which contain the wastewater and noted there has never been a spill out of the lagoons.

Te Velde also asked the bankruptcy court to allow him to hire a realtor to sell the business and property. He feels the business is worth more if it is sold as one unit as opposed to piecemeal.

 

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Bankruptcy court rules fugitive developer can be forced to reveal assets

A  Ninth Circuit Bankruptcy Appellate panel ruled this week that a fugitive bankrupt Seattle real estate developer who fled the U.S. to avoid his creditors can be forced to disclose his foreign bank accounts

The Ninth Circuit overruled a lower court’s decision that they lacked authority to rule.

Michael Mastro, fled to France with his wife in 2009 to escape money laundering and fraud charges. France has so far declined to extradite he 93 year-old Mastro back to the U.S.

The Chapter 7 trustee in the case, James Rigby Jr asked the court for the directive to compel Mastro to provide the bank information an when they refused he appealed to the Ninth Circuit.

The Ninth stopped short of ordering the lower court to force Mastro sign a directive and sent the case back to the lower court for review.

You can read the decision here.

Source: Courthouse News Service

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2 Arizona hospitals file bankruptcy

Gilbert (Ariz.) Hospital and Florence (Ariz.) Hospital entered Chapter 11 bankruptcy in May  after creditors tried to force the hospitals into bankruptcy to try  and recoup $1.96 million they claim the affiliated hospitals owe.

In April, three employees of Florence filed an involuntary bankruptcy petition for $46, 650 in wages and the Gilbert involuntary petition was filed by the founder and CMO Dr. Timothy Johns, an unsecured creditors’ trust and a Phoenix law firm. Involuntary bankruptcies are used by creditors when they don’t believe they will be paid for goods or services they provided.

In court documents filed May 1st, creditors claimed the two Arizona hospitals failed to make lease payments for months and both facilities are “on the brink of complete shutdown.”

After creditors ask a court to initiate bankruptcy proceedings, the debtor(s) have the chance to contest the petition. The two Arizona hospitals failed to meet the 21-day timeline and the court granted the creditors’ request for relief through the Chapter 11 bankruptcy process.

This is the second time the two hospitals have been in bankruptcy court. The hospitals filed for voluntary Chapter 11 bankruptcy in 2014.

 

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