Robert Kiyosaki's Shocking Bankruptcy!!!

Haha

I reckon he will be ok :-) It will always play well into his hands... Even if he ends up penniless (which he wont) Being an entrepreneur means that he will recover stronger than ever.

Any entrepreneur can make money and when their backs are against the wall there is only one way out :-)

Danny

wow.. that'll put a nice dent in his reputation.

Funny, he and Donald Trump co-authored a book and Trump has a history of bankruptcy as well.

Funny that :-)

Bankruptcy is a good way i spose to wipe the slate clean and start again... and if you really hate the company you owe money to a good way to piss them off as they probably wont get a bean...lol

I dont think it will dent his reputation either... it can only enhance it

Read his book and didn't like it. Much preferred Napoleon Hill.

I don't buy the whole "just file bankruptcy for your business and it won't affect you personally" crap.

Bankruptcy is a serious thing, and the repercussions can be long lasting...these are real debts, with real companies/people on the other end that are expecting to be paid. Just something to consider.

I got to say that the almost $24 million judgement serves him right for not living up to his commitment to the people that promoted his product. But I think the BK is simply a ploy as he is worth about $80 million. He only put one of his companies into BK, this is not personal BK and doesn't mean a whole lot.

If the Annex deserve their rightful share, then Kiyosaki is being an a'hole.

Great headline at work... If one doesn't read the article you'd assume that he was personally broke

Anyway, I have some of his books. Guess we'll have to wait and see how this plays out in terms of it affecting his rep. As far as his pockets are concerned... I think he'll be ok

The dead weight of bankruptcy here in 2012 depends on the circumstances surrounding it. One brought about by medical bills is different from one sparked by poor judgement.

The article doesn't have much in the way of details. Without knowing what the actual contract stated between Kiyosaki and The Learning Annex, it's difficult to come to any real conclusions. It appears from this article that he didn't pay The Learning Annex what they were owed and he lost the judgment to them in court.

He felt the the 24 million judgment was excessive so that one company (out of his 10 or so) is declaring bankruptcy. So it's only that one company that's going under, he's still going to have a personal network of 80 million, according to the article. So he definitely won't be hurting.

Too bad the article doesn't state anything beyond that. It doesn't state if he's going to pay them anything or if he's reneging 100%. If he is not paying what he owes them based on their written agreement then that's jacked up.

Irregardless, this will affect his reputation. Though in a few years most people will have forgotten about it.

RoD

Calamaroo,

You have to love Robert Kiyosaki...

An unsuccessful guy..... Writes "Rich Dad, Poor Dad" and becomes "successful".... So, he made his money writing books about money and personal finances... Ironic!

That shows the power of becoming a published author......

God Bless,

Rich Beck

I always thought he was a scam artist. He was popular among a lot of network marketers, but I read his book and thought it was poorly written fluff. I wouldn't be surprised if he had it ghost written on the cheap. How someone at PBS had the bad judgement to put him and his bimbo on is beyond me; I guess someone figured he's popular so maybe he can help us raise some money.

This man is about to bounce back even harder. Donald has done it so I'm sure he will do the same.

Again its his company filing for bankruptcy not him personally.

This should be interesting to pay attention to though.

- Isaiah Jackson

thats the thing with us entrepreneurs... nothing gets us down :-)

Every cloud has a silver lining

I bet there will be a strong reason behind his actions. Anyway none of millionaire or billionaire became successful in few tries.

I'm most confident he'll get up again. That what we all have to do in the circumstances.

LOL... and you took it seriously.. haha

really clever way. but it's not ethical ... because not to pay investors is not good thing. lol

Incredible (how do you say that in Spanish? lol). Well, it did say he has 9 other businesses. Maybe he'll rebound with those.

This is not really a big deal to Robert because there are 9 other companies he has. He felt that 24 million was outrageous so he went bankrupt because that company only had a couple million in it. His net worth is well over the amount they were asking and his brand is huge. His reputation might take a hit from the doubters but he will still continue to make millions every year. Its probably just another day for him.

When "The Donald" went bankrupt it actually helped his image when he started promoting his books, because he could say "See? I'm like all of you. Shit happens to me too". I remember his Oprah appearance and this was one of his recurring statements about how he had been way up and then way down and what he did to get back up again.

He might be doing like Hilton & startup a spin-off business, dump all the debt into the spin-off & file bankrupt on the spin-off.

Everything has a price. I think it's smart for him to declare bankruptcy so he can save millions but the downside is even though he's able to save millions.. he's not able to save his reputation.

If he save his reputation then he will not be able to save millions. I believe he's a good guy, but what really ponder upon me is that, since he already had so much money (forbes shows that he's worth $80 millions), why didn't he pay zanker and his team their potion? An agreement is an agreement, I would be mad if someone goes back on their word on me as well.

Well, let's not judge but pray for them (particularly robert kiyosaki), shall we?

What! I've been reading this guy for years!

he has several other companies so wont be feeling the pinch, but still it has to effect him from a reputation stance

He'll be fine, Forbes estimated his net worth at a cool 80 million, plus he owns like 10 other businesses..

Im sure their is a reason. Maybe he dosent want everyone getting his money. Hes in the top 10 greatest minds on this century.

Whether, it's a trick for Kiyosaki to escape the tax, or he's really facing financial dilemma... I guess, he's the only ONE that know the truth here!

Yep I heard this on the radio yesterday.

This seems to happen to a lot of the wealthy people out there. Example. Donald Trump.

-Omar

In this business, sooner or later you will fall. From rags to riches, to riches back to rags. It's shocking but it happens. The only thing we can do is to learn about what happen and prevent it from happening. All successful business people has went bankrupt one time or another. Michael Jackson also went bankrupt. It's good to be bankrupt to learn and find a way to get back up on your feet instead of being scared of bankruptcy.

If HE, ****OR**** a corporation he has direct control of or that sells only his products, goes bankrupt, it will OBLITERATE his reputation! His reputation was built on the idea of avoiding and getting out of debt.

Ever see "legally blond"? The turning point in the movie is a person that is charged with murder that has an IRON CLAD ALIBI, and REFUSES to use it! WHY? Because she built her wealth on a strategy to lose weight, and the alibi would reveal that SHE used LIPOSUCTION! AGAIN, such a revelation would have obliterated her alibi.

Will it HURT his company? MAYBE not much. But he will no longer be able to state that it is so easy, and talk down to those that failed.

And bankruptcy used to be SO easy. They made it a lot harder because so many have taken this route.

Did you know that there are maybe 4 ways to own a home FREE AND CLEAR? I mean potentially get MILLIONS of dollars of property for NOTHING? There ARE! They take to long, are too risky, not well known, etc... so FEW do them, but they HAVE been done.

What would you think of a real estate mogul that did THAT?

BTW there is ALSO a way to CONTROL property that is more popular. How would you like someone to do that with YOUR property?

Steve

Just had to comment to the OP about the power of your thread title--fantastic choice! You've got loads of views and even quite a pile of comments. Great title. Good going

With trump, it seems that people either love him or hate him. And it seems to me that, a lot of rich people are fond of him. When the general masses can't stand him. The point is, his reputation is strong where it needs to be. Not strong enough to amass a presidency, but strong enough to keep brokering deals with the right people.

Anyway, theres too much to be said about trump. I personally can't stand the guy. But more because of how he talks, he's too damn narcissistic for my liking. Kiyosaki, the guy who sounds like a jetski. He seems like too much of a "show" to me. And although some of his content is great, I find most of it is watered down to appeal to the masses.

This MUST look bad for Robert, otherwise the "get out called bankruptcy" card he can use is useless. I had a feeling something was going on when lots of companies here in the UK did some restructuring and even changed their trading names over the last few years. Robert has shares in them all, but of course his association (shares) with these companies has now been dropped. It is my opinion that this will just be temporary until the dust settles then he will be given shares back in the companies with high dividend payouts.

Robert has without doubt made a lot of people very rich, not just with his books that were inspirational to say the least, but with his 100's of coaching companies trading all over the world teaching people how to get into the property game.

I personally attended one of these courses and I felt it was worth every penny, I certainly got my monies worth out of the tuition I received and let's face it if I (the average Joe) could do a course and make money directly from the advice, the creator of the advice will never but stuck in a hole to earn money.

Best Regards
Arran Wood

I read his Gold and Silver book, amazing information. on how the money system is corrupt. He just uses the system to his advantage, the average investor out there doesnt understand.

Kiyosaki has balls, I'll give him that. But anyone who thinks that he's a role model (not that anyone has said as much on this thread) should really take a step back. I'm all for scrappy get-back-up-and-fight, but apparently there (a) never was a Rich Dad and (b) no one can find any evidence that RK ever did any real estate deals, much less that he was a wheeler-dealer like Trump. When your entire reputation rests on a couple of lies, it kind of obviates marketing expertise IMO.

John T. Reed's analysis of Robert T. Kiyosaki's book Rich Dad, Poor Dad

The experts hate Robert Kiyosaki because he goes against their grain. I don't think the people who actually understand his philosophies will sway away from his work. I'm gonna still continue to read his books.

If I had a small portion of his money I would probably quite my job and my business... and become a full time artists. What do these people do with all this money, I wonder? DO they fill a swimming pool and jump into it???

Robert Kiyosaki will certainly bounce back from this incident. He has all the attributes and knowledge before this and will continue to be successful. No doubt this bankruptcy thing has tainted his reputation, but judging from the many people whom I know, who had attended his seminars, his principles in becoming financially independent are worth every single penny. He merely just used the system to his advantage.

Nothing to do with the power of corporations.
All to do with practising what you preach, instead of selling "experimental" ideas, some of which are borderning on illegal.

just because someone wins something in court doesn't mean they were right, so he file for bankruptcy with one of his companies, who cares, He will always have a great rep, and rightfully so .

they will settle this out of court.

he's just not looking to pay $20 million.

i'll take any bets on this.

Rich Dad, Poor Dad is the most important book I've ever read. He'll get through this bump in the road.

Agree totally that's his attitude in the books and the first thing that came to my mind. Burn this company to avoid paying up

The karma wheel is spinning, and sooner or later, he'll get what he deserves...

One more. He did not go bankrupt personally. The title says "Rich dad bankrupt" so people can think as Kiyosaki as a deadbeat. Most of the readers do not read further. If they do, most of them do not analyze or worst... understand the scam. I am sure he has several LLCs, Inc's and Trusts in his portfolio. He did not go bankrupt personally... one of his companies went bankrupt which is totally different. He is not liable personally. Again, the news are misleading and manipulative.

There has been a legal dispute with the CO-AUTHOR of Rich Dad, Poor Dad. RK's stroy of his "two dads" has evolved over the years.

Some of his "advice" borders on illegal, and much of it is unethical.

And don't get me started on the seminars that bear his name.

The bankruptcy doesn't surprise me in the least. The guy is not who millions of people think he is. I wouldn't go so far as to say he's a fraud, but only because I don't want to risk being sued for libel.

...or he can, apparently, just declare bankruptcy.

All the best,
Michael

i do not think so....you must read more of his books. (it is not about what you own, but what you control). Only the rich know this info.

You have to give the guy credit, though...he constructed a huge information empire from one book. Yet, no one has been able to substantiate even the identity of the "Rich Dad" he refers to throughout the book. Many of the clues he does provide, turn out to be false or lead to dead ends...and plenty of people have looked into this.

Kiyosaki always reminded me of the the late Charles Givens of Orlando FL. Also, a big-time self-made financial 'guru', Givens once admitted that most of his initial success was due to a 'fluke.'...a fluke that he may have engineered himself.

As a relatively unknown author, he managed to get interviewed on the TODAY show (admittedly no easy feat). The bio Tom Brokaw (also Bryant Gumbel) used to introduce him , claimed he was a millionaire.

He later admitted he wasn't even close to millionaire status, but nevertheless used the video tape of the Today Show interview to book himself all over the country and help launch his $100 million dollar business.

Kiyosaki, has the same charm, good looks, and exudes sincerity...and you know they say:

"Sincerity is KEY, ...and if you can fake that, you've got it made."
_____
Bruce

'Rich Dad, Poor Dad... Still Very Rich Dad!

Rich Dad... bankrupt Dad!

Not going to help book sales for sure!

If he were smarter he would have ignored the lawsuit and let them get a default judgment instead of spending huge sums on legal fees to defend it, and THEN filed bankruptcy to void the judgment.

Does anyone else smell a WSO coming?

"GURU SECRETS REVEALED! You think Google Pandas and Penguins are Scary? Discover How I Escaped the Clutches of a $24 MILLION Lawsuit!

This normally sells for $1,000, but TODAY I'm selling it for just $7!"

Something in our human nature seems to make us relish a
big fall. Outside whether he is right or wrong in his
action the same crowd who cries "Here comes our
king" on Sunday, can cry, "Crucify Him!" on Friday.

Just a thought.

-Ray Edwards

It is his business assets that are forfeited not his own. His business is a different legal entity.

All of the company's assets are turned over not his own.

He can wake up in his mansion and start this ride all over again.

And don't forget offshore bank accounts.



Bill Jeffels




.

This was the first book I read about the whole entrepreneur stuff and creating a life of real freedom.

I've also wondered about his story in his book and have wondered did he make it all up. Regardless, He is a good businessman and I attended a few of his seminars. Well they weren't even his, he licensed out his brand name and the companies that were selling real estate and stocks and crap using his name were very bad IMO. Just a ton of really expensive mentorship programs.

He is not personally bankrupt. It's just one of his old companies. He has enough money ($80m) to pay off the debt ($24m) but no one can touch his personal money. That's the power of asset protection and all rich people are good at it. He is the "actual" winner of the case. What can the other party get? The company only has over $1m assets if I remember correctly. That's all they can get. Now who's laughing?

Jajaj, i think there is something behind this "bankruptcy" as with Donald.

It's not such a big loss for financial guru like him.
It's proving that no one can be on the top forever. You must change in global market as time come.
Anyway his financial guidance definetly only for people who not afraid to experiment under pressure of high risks.

He has a Net Worth of Over 80Million, The bankruptcy is only 1 of his companies and he owns over 10 and the bankruptcy is for 24Million. He's still doing fine.

For those looking at this as a moral issue. Remember there is a difference between Robert Kiyosaki the person.

And Robert Kiyosaki,the Rich Dad Poor Dad corporation. Kiyosaki the corporation filed for bankruptcy not the private person.

Example, the CEO of Nabisco foods is not personally liable for corporate and business affairs.


Bill



.

*looks @ 60,000 legal education and 7 years of practice*

Asset Protection 101!

Learning Annex LLC sued Kiyosaki's LLC.
Learning Annex won.
Judge said the Learning Annex LLC was entitled to 20+ million.

Bu Kiyosaki's LLC doesn't have 20+ million in assets to satisfy the judgment.

What should Learning Annex LLC do?

What should Kiyosaki's LLC do?
- appeal the award?
- hand the Kiyosaki LLC keys over to Learning Annex? (the llc is probably a piece of paper sitting in some lawyer's office, at best Kiyosaki's LLC has some leased space some place..)
- declare bankruptcy - in which case the bankruptcy judge will sell off the assets of Kiyosaki's LLC to satisfy the judgment.

The only moral thing to do is to declare bankruptcy and have a bankruptcy trustee either work out a payment plan for the LLC or sell off the business to satisfy the judgment.

That's it.

That's the purpose of asset protection!

Legally and MORALLY, Kiyosaki, the individual, has no duty to make Learning Annex whole, because it wasn't Kiyosaki that made the deal, but his legal entity. (one of many). The only thing Kiyosaki had at risk, was the capital that he invested in his LLC, and that's it.

Hence LIMITED LIABILITY. That's the purpose of it. To limit your liability to the money you put into the company.

We're all grown ups. We know that the business might do everything we want it to do, but it MIGHT FAIL. That's why we create a limited liability entity. That's why we HIRE LAWYERS who do this for a living, who've seen every kind of deal known to man, and get the terms right after a fair amount of negotiation.

We would not be here chatting online were it not for limited liability. (a bunch of the fiber laid down in the 90's was done by now bankrupt companies that thought broadband would be more lucrative than it is!)

This is how business works.
This is how the law works.

Had it went the other way, Learning Annex didn't fulfill their part of the argument, Kiyosaki's entity would sue, get a judgment, and try to collect that judgment against the Learning Annex LLC. Assuming there's no commingling of funds or any muddying of the water, it wouldn't be proper to go after the guys behind the Learning Annex.

Strasburgo, esq.

That's a way to seperate a big player from a small player. Corporation bankruptcy and personal bankruptcy.

In my opinion its a bit of PR and Robert Kiyosaki will bounce back like many Millionaires/Billionaires out there like Donald Trump... its because they have Financial Literacy a.k.a Financial IQ! and there financial thermostat is set very high!

In my opinion,just take the good part from any book and throw the bad part.The concept of creating assets in his books is what made my day when I read the book Rich Dad Poor Dad.

well he didn't filed for personal bankruptcy,
just that one company. he still has lots of dough and businesses that are doing well.

it seems that waters run deep...

I actually don't find this news shocking at all. I remember reading the first "Rich Dad Poor Dad" book and it opened my eyes to the whole financial independence through business thing. There were really bold advises there (some very smart, others kind of borderline dangerous), but I mostly related with the lessons obtained from 2 dad's with very different financial insights. This was I guess the first personal finance related book I've read. I've read a whole lot of personal finance books after that but I this was the starter for me.

He'll be ok. Reputation-wise, some people will definitely be weary of doing business with him. This, I believe is just one of the loopholes he knows of. Exploiting might be the word.

I read his books. This is the gateway to something big for him. Wouldn't worry about this at all.