Robert Kiyosaki's Shocking Bankruptcy!!!

146 replies
Kiyosaki Bankruptcy Article

But he's going to have the last laugh. If you have read his books, you know why. Hint: Something to do with the "power of corporations."
#bankruptcy #kiyosaki #robert #shocking
  • Profile picture of the author Danny Cutts
    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
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    • Profile picture of the author Deepak Media
      Originally Posted by Danny Cutts View Post

      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
      He filed bankruptcy for his company only.

      Despite the blow to the personal finance guru's reputation, Kiyosaki probably won't feel the pinch in his wallet. Forbes pegs his net worth around a cool $80 million
      His personal wealth is intact. That's why corporations are awesome.
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    • Profile picture of the author YasirYar
      Originally Posted by Danny Cutts View Post

      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
      Ditto. I think entrepreneurs are the most strong-willed persons in this world. No amount of difficulty can even turn them down, or for which they'll fail to turn into an opportunity.

      I sure bet he'll bounce back in no time (if that's even TRUE!). Well, if you are UP, people will pull you down, simply because they envy you.
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    • Profile picture of the author tiroberts
      Originally Posted by Danny Cutts View Post

      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
      I just wanted to say that I LOVE the first line in your sig. TOO Funny! And I'm right w/ ya'. Rock on!
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    • Profile picture of the author writeaway
      Originally Posted by Danny Cutts View Post

      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
      He's been bankrupt before. Lived out of his car.

      THis might be news for some people but successful entrepreneurs face BANKRUPTCY sometimes. It's just a bump on the road to success. Look up Intel's Andy Grove...
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  • Profile picture of the author bradx
    wow.. that'll put a nice dent in his reputation.
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    • Profile picture of the author Mike Hill
      Originally Posted by bradx View Post

      wow.. that'll put a nice dent in his reputation.
      No it won't... companies large and small do this all the time to avoid paying fees and penalties. Nothing new here...
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      • Profile picture of the author Tayman
        Is he personally bankrupt or is one of his companies going bankrupt? There is a distinct difference.
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        • Profile picture of the author Mike Grant
          Originally Posted by Tayman View Post

          Is he personally bankrupt or is one of his companies going bankrupt? There is a distinct difference.
          That's exactly it.

          This is not personal bankruptcy. One of his businesses is filing bankruptcy, simply because Kiyosaki will not pay the $20MM he owes to an investor.
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          • Profile picture of the author CDarklock
            Originally Posted by Mike Grant View Post

            One of his businesses is filing bankruptcy, simply because that business does not have the $20MM he owes to an investor.
            Fixed that for you.

            It doesn't matter whether Kiyosaki personally has the money. The company owes the judgment. The company does not have the money.

            Kiyosaki is not personally liable and does not have to pay it.

            You can argue all day about the "right thing" in this case, but if you do, chances are pretty good you're broke. Rich people don't get rich by paying money they don't have to pay.

            Not that I condone this practice, having gone into my own pocket to pay my company expenses several years ago when a major operation collapsed. But then, I am also broke. There's a lot of truth in "nice guys finish last," since we're playing by different rules and don't get to take as many shortcuts.
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      • Profile picture of the author Joseph Robinson
        Banned
        Originally Posted by Mike Hill View Post

        No it won't... companies large and small do this all the time to avoid paying fees and penalties. Nothing new here...
        See the post above you. It's not the bankruptcy itself that'll hurt; but the reason for doing so.
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        • Profile picture of the author Mike Hill
          Originally Posted by Joseph Robinson View Post

          See the post above you. It's not the bankruptcy itself that'll hurt; but the reason for doing so.

          Donald Trump has done this before and didn't hurt him.
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          • Profile picture of the author Joseph Robinson
            Banned
            Originally Posted by Mike Hill View Post

            Donald Trump has done this before and didn't hurt him.
            Financially, no. But he is generally viewed as a scumbag for using bankruptcy, and since we're talking reputation it did hurt him.
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            • Profile picture of the author iAmNameLess
              Originally Posted by Joseph Robinson View Post

              Financially, no. But he is generally viewed as a scumbag for using bankruptcy, and since we're talking reputation it did hurt him.
              Generally viewed as a scumbag? I think that is a little unfair and inaccurate to say because that isn't true at all. Donald Trump has NEVER filed any type of personal bankruptcy. The people that say he has, are just not educated on the different types of bankruptcy and don't understand that a corporation is an entity by itself.

              It didn't hurt his reputation. Only people that don't understand what it did would see him in a different light. Sometimes bankruptcy makes sense and other times it doesn't. In his cases, it would have been a bad business decision to not file corporate bankruptcy.
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      • Profile picture of the author CBusiness
        Originally Posted by Mike Hill View Post

        No it won't... companies large and small do this all the time to avoid paying fees and penalties. Nothing new here...
        agreed wholly.

        This is how REAL MONEY operates.

        And he filed CORPORATE Bankruptcy.. His personal assets and other ventures are protected.

        http://www.ckhid.com/hip-hop-news/12...te-bankruptcy/
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    • Profile picture of the author scrofford
      Originally Posted by bradx View Post

      wow.. that'll put a nice dent in his reputation.
      Why will it put a dent in his reputation? Donald Trump went bankrupt and he's back on top. If you take risks sometimes you lose. Just because Robert Kiyosaki's business went bankrupt doesn't even mean that he's not continuing to make money.
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    • Profile picture of the author icandi
      Originally Posted by bradx View Post

      wow.. that'll put a nice dent in his reputation.
      I agree entirely I'm surprised at some of the comments and apparent admiration for his actions.
      Would he starve if he honoured his obligations anyhow? it sickens me to hear it being justified.
      The in-balance of wealth in the world is so out of hand - RK would still have $56 million and retain his reputation. Maybe there will be people affected by his decision, staff losing jobs or homes, maybe not, but possible.
      At this time over 2 Billion people on this planet currently lives / survives / exists (sorry can't think of the correct word to use) on less than $2 a day

      Speaking of reputations, here's a couple of viewpoints from more eminent people than myself...

      It takes many good deeds to build a good reputation, and only one bad one to lose it.
      Benjamin Franklin

      It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.
      Warren Buffett

      I tend to agree with them, too many times this "greed" mentality has caused a lot of misery. It's what is represents. Bernie Madoff is reportedly struggling now as he has only a net worth of $40 Million, I suppose it is a drop from $800 Miliion, as with all things it's relative. There's going to be a movie made apparently, wonder where the proceeds will end up, I wish it was to charity.
      It's pure greed that drove us to the meltdown in 2007 and I don't know many people that haven't been affected in some way.
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  • Profile picture of the author LarryC
    Funny, he and Donald Trump co-authored a book and Trump has a history of bankruptcy as well.
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  • Profile picture of the author Danny Cutts
    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
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    • Profile picture of the author marciayudkin
      I dont think it will dent his reputation either... it can only enhance it
      Depends who you are talking about. The root of the bankruptcy appears to be a joint-venture deal with the Learning Annex on which Kiyosaki reneged. He lost the lawsuit over this in court and declared bankruptcy to avoid paying the court judgment. I predict that smart people or companies will not want to do joint ventures with him in the future.

      Marcia Yudkin
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      • Profile picture of the author Cual
        Read the NY Post article guys. It doesn't seem like this is a big deal.

        "The dealings we had with Learning Annex were with a company
        that hasn't been in business for a number of years . . . I am not surprised
        Learning Annex is upset and angry, the money doesn't exist in that company,
        and we can't bring money out of the group.

        "Robert and [wife] Kim are not paying out of personal assets. We have a few
        million dollars in this company, but not 16 or 20. I can't do anything about a $20
        million judgment . . . We got hit for what we think is a completely outlandish
        figure."

        In other words, creo que se la suda
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        • Profile picture of the author theory expert
          Banned
          Originally Posted by Cual View Post

          Read the NY Post article guys. It doesn't seem like this is a big deal.

          “The dealings we had with Learning Annex were with a company
          that hasn’t been in business for a number of years . . . I am not surprised
          Learning Annex is upset and angry, the money doesn’t exist in that company,
          and we can’t bring money out of the group.

          “Robert and [wife] Kim are not paying out of personal assets. We have a few
          million dollars in this company, but not 16 or 20. I can’t do anything about a $20
          million judgment . . . We got hit for what we think is a completely outlandish
          figure.”

          In other words, creo que se la suda
          So may I ask is the MSNBC report inaccurate compared to NY Times report? Did not Oprah, Will Smith, and, Donald Trump involve themselves in the business venture?
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      • Profile picture of the author wizman888
        Originally Posted by marciayudkin View Post

        Depends who you are talking about. The root of the bankruptcy appears to be a joint-venture deal with the Learning Annex on which Kiyosaki reneged. He lost the lawsuit over this in court and declared bankruptcy to avoid paying the court judgment. I predict that smart people or companies will not want to do joint ventures with him in the future.

        Marcia Yudkin
        That is surely something to soberly consider... the reputation risk of bankruptcy under these circumstances.
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        • Profile picture of the author Joe Mobley
          A real-time lesson in asset protection. Observe and learn.

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    • Profile picture of the author sbucciarel
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      Originally Posted by Danny Cutts View Post

      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
      Yeah .. maybe now he can "Deadbeat Dad"

      As one of Kiyosaki's earliest backers, The Learning Annex was responsible for arranging the speaking engagements and platform that led to his massive success.

      But apparently the fame went to his head because according to court papers obtained by the Post, Kiyosaki, who published his first "Rich Dad" book in 1994, never paid the Annex its rightful share. Said founder and chairman Bill Zanker: "Oprah believed in him, and Will Smith believed in him, but he didn't keep his promise to us."
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      • Profile picture of the author marciayudkin
        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.
        My uncle, who was an attorney and an entrepreneur, once told me that many years ago he was going to declare bankruptcy, for the usual reason - he was deeply in debt. He talked it over with his father, who was also an entrepreneur and kind of a wheeler-dealer with a sixth-grade education. His father told him that declaring bankruptcy, while legal, meant 1)he would be letting down people who had extended credit to him in good faith and 2)his word would no longer mean much. My uncle decided to pay everyone back, even if it took years, and he did so. He told me that this was one of the most crucial decisions he ever made in his life.

        I haven't read "Rich Dad, Poor Dad," but it seems like Kiyosaki and I have different role models.

        Just because the law allows you to discharge your debts doesn't mean it's a moral or wise thing to do.

        Marcia Yudkin
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        • Profile picture of the author Fredbou
          Originally Posted by marciayudkin View Post


          Just because the law allows you to discharge your debts doesn't mean it's a moral or wise thing to do.

          Marcia Yudkin
          I agree entirely! People declaring bankruptcy to get out of what they legally owe to others sickens me. Often it's ordinary Mums and Dads, tradespeople who are left with nothing for all their hard work.
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          • Profile picture of the author capitalalchemy
            I've read I think all of his books. They're inspiring, but of course contain a lot of fluff. His book Increase Your Financial IQ was very basic, but was what I needed at the time that I read it. He's been broke before, but I stand for his thoughts on not relying on the government to take care of you (or anyone else for that matter).
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          • Profile picture of the author Haroon Ballim
            Basically when you using the law to avoid paying debts , and that when you really do have the money to pay is totally immoral.

            Don't know the full story here , but if he does have the money available in whatever capacity , personal or business than you have the moral obligation to pay . Even if the law allows you to squirm out of it.

            What goes around , comes around . So those that use these tactics to short change others , will find the same happen to them , plus some.
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          • Profile picture of the author goindeep
            Moral of the story, pay your bills.
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          • I'm not defending his actions, I'd just like to say that he's not personally declaring bankruptcy, he's just doing so with one of his biz entities, shedding dead weight, if you will. Personally, he's still very wealthy, so this exactly evidence of him being a fraud etc...

            That being said, he may well be the biggest a__hole in the world, but I can't say, because I do not know him personally in the least. Anyway, for what it's worth and all that...
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    • Profile picture of the author DubDubDubDot
      He will likely be named as a co-defendant in a lawsuit against his corporation. From there it will depend on how much money the corporation made and how much money he paid to himself from it.

      This may come as a shock to some of you here, but you can't set up a corporation where your own personal labor is the primary business and expect the corporation to protect you legally. The courts know what you are up to and will issue a personal judgement against you.

      This comment left after the story sums it up pretty well:

      "Normally having a corporation protects your personal assets. However, if they can show that the corporation was established solely for his personal gain and that he fraudulently transferred what should have been corporate assets to himself through excessive salary or dividend you can, in legal terms, "pierce the corporate veil" and go after the personal assets as well. It sounds like this may be the case here. There are lawyers out there who specialize in this kind of case and my bet is that they can show the company was not a legitimate corporation and just a front for his personal business dealings."
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      • Profile picture of the author WriterWahm
        Originally Posted by DubDubDubDot View Post

        He will likely be named as a co-defendant in a lawsuit against his corporation. From there it will depend on how much money the corporation made and how much money he paid to himself from it.

        This may come as a shock to some of you here, but you can't set up a corporation where your own personal labor is the primary business and expect the corporation to protect you legally. The courts know what you are up to and will issue a personal judgement against you.
        ^^^THIS.

        I'm surprised a lot more people have not mentioned this; it's called lifting the veil of incorporation and there are times when the court will do that and go after the personal assets of the defendant regardless of the fact that he's incorporated. Declaring bankruptcy to avoid paying what you owe is just plain wrong. Some people might (and do) get away with it but every once in a while, the wheels of justice get to work.

        On another note, I first read RK's Rich Dad, Poor Dad as a 20 year old undergrad and a lot of what he said made sense. The only problem I had was that he seemed to make his money from selling his books and not from any tangible form of business.

        He will probably bounce back, but without a doubt, he has lost a lot of fans/readers.
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        • Profile picture of the author seasoned
          Originally Posted by WriterWahm View Post

          ^^^THIS.

          I'm surprised a lot more people have not mentioned this; it's called lifting the veil of incorporation and there are times when the court will do that and go after the personal assets of the defendant regardless of the fact that he's incorporated. Declaring bankruptcy to avoid paying what you owe is just plain wrong. Some people might (and do) get away with it but every once in a while, the wheels of justice get to work.

          On another note, I first read RK's Rich Dad, Poor Dad as a 20 year old undergrad and a lot of what he said made sense. The only problem I had was that he seemed to make his money from selling his books and not from any tangible form of business.

          He will probably bounce back, but without a doubt, he has lost a lot of fans/readers.
          Actually, it is piercing the veil. I never heard about THIS! It was always the idea of money laundering, or comingling funds that has been stated as a cause.

          Steve
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    • Profile picture of the author Fraggler
      Originally Posted by Danny Cutts View Post

      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
      Wow. You can learn a lot about Warrior members with threads like this.
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      • Profile picture of the author Haroon Ballim
        Some comments here say that he is not legally or morally bound to pay .
        There is a big differance between what is legal and what is moral.
        He may be legally allowed to get away with not paying the debt . That does not make it moral.

        So set up a company . Take the profits or pay yousrelf a huge salary because after all you are the main guy behind the company . But wait there are debts , I cant pay . Its the company . Go after it . I just take profits . Who would you blame for Exxon , the mortgage crisis etc . The company or people behind the comapny who after running it to the ground while helping themselves , and lying to investors and staff . Blame The comapny of course . I am innocent . I am just the owner or CEO

        Yeah Right
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  • Profile picture of the author fin
    Read his book and didn't like it. Much preferred Napoleon Hill.
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    • Profile picture of the author ShaneGorry
      Originally Posted by fin View Post

      Read his book and didn't like it. Much preferred Napoleon Hill.
      The only real value I see in those kind of books is if you own a book store or shares in Amazon or the like. No offence to any of the authors but It's not for me. Learn from real life.
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  • Profile picture of the author matchoo77
    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.
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    • Profile picture of the author celente
      Originally Posted by matchoo77 View Post

      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 agree with this, unfortunatly my dear old mum went backrupt in 1993 after her divorce, and it messed with her for years.

      Then as you say, there was other companies that were chasing her.
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    • Profile picture of the author LarryC
      Bankruptcy may have been a disgrace 50 years ago, but today most people just don't care. For better or worse, values are just different today.

      I remember the bailout of Chrsyler some time ago. People were saying that it would ruin Lee Iacoca's image to need to be rescued by the government, but this didn't happen at all (and that was something like 20 years ago). It's almost like divorce; it's become so common that hardly anyone blinks an eye.

      The reigning view today seems to be - do whatever it takes and use the system to your advantage.
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  • Profile picture of the author timpears
    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.
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  • Profile picture of the author mikelmraz
    If the Annex deserve their rightful share, then Kiyosaki is being an a'hole.
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  • Profile picture of the author jaggyjay
    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
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  • Profile picture of the author DubDubDubDot
    Originally Posted by LarryC View Post

    Bankruptcy may have been a disgrace 50 years ago, but today most people just don't care. For better or worse, values are just different today.
    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.
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  • Profile picture of the author Rod Cortez
    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
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    • Profile picture of the author Simon Ashari
      Originally Posted by Rod Cortez View Post

      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.
      Exactly. The articles didn't do a good job of detailing the contract.

      It could be that while they did promote him, it wasn't their promotion that had a significant impact on his notoriety. That might be why he feels justified not paying the money.

      However there is little detail in the article so we cannot be sure.
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      • Profile picture of the author theverysmartguy
        From the way it sounds is that he has a corporation for each business venture he has going. So that if something were to happen, his personal finances would be protected.

        If something were to go wrong, he would just file under the business that the venture was labeled, thus protecting himself.
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        • Profile picture of the author Joe Mobley
          That kind-of sums up asset protection doesn't it?

          Joe Mobley



          Originally Posted by theverysmartguy View Post

          From the way it sounds is that he has a corporation for each business venture he has going. So that if something were to happen, his personal finances would be protected.

          If something were to go wrong, he would just file under the business that the venture was labeled, thus protecting himself.
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          • Profile picture of the author CBusiness
            Originally Posted by Joe Mobley View Post

            That kind-of sums up asset protection doesn't it?

            Joe Mobley
            exactly. what's the point of LLC's and Corporations otherwise ?

            think about it.

            Dont go into the ocean unless you're ready for the possibility of sharks

            not something that sounds 'morally' good BUT we dont know what The Learning Annex did/said to Robert in the beginning ........... Could be wrongs on both sides. Courts only operate from facts.

            A good guy can shake a bad business guys hand and signs his paper......... and the Bad guy can flip the entire story to make the good guy look bad.

            Especially NEWLY DISCOVERED, un-experienced Potential
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      • Profile picture of the author fin
        Originally Posted by Simon Ashari View Post

        Exactly. The articles didn't do a good job of detailing the contract.

        It could be that while they did promote him, it wasn't their promotion that had a significant impact on his notoriety. That might be why he feels justified not paying the money.

        However there is little detail in the article so we cannot be sure.
        Maybe he should pay Ophra the 20M.
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  • Profile picture of the author RichBeck
    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

    Originally Posted by Calamaroo View Post

    Kiyosaki Bankruptcy Article

    But he's going to have the last laugh. If you have read his books, you know why. Hint: Something to do with the "power of corporations."
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by RichBeck View Post

      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!
      Actually, he wasn't successful until the company that he didn't pay made him successful. Yeah, What a Guy!

      As one of Kiyosaki's earliest backers, The Learning Annex was responsible for arranging the speaking engagements and platform that led to his massive success.
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  • Profile picture of the author Greg guitar
    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.
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    • Profile picture of the author mikelmraz
      Originally Posted by Greg guitar View Post

      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. .
      Are you saying he may have gotten a writer from Elance to write his book?
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      • Profile picture of the author Greg guitar
        Originally Posted by mikelmraz View Post

        Are you saying he may have gotten a writer from Elance to write his book?
        I'm saying he could have found someone in that kind of market to do a far better job than whatever hack did write it, be it a ghost writer or himself.
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        • Profile picture of the author phillipmonster
          Originally Posted by Greg guitar View Post

          I'm saying he could have found someone in that kind of market to do a far better job than whatever hack did write it, be it a ghost writer or himself.

          Actually the ghost writer who wrote it is, Sharon Lechter. She's a CPA.
          Hahaha I find this thread kind of funny
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  • Profile picture of the author Isaiah Jackson
    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
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    • Profile picture of the author Greg guitar
      Originally Posted by Isaiah Jackson View Post

      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
      Right, and when Monsanto and Dow Chemical, the manufacturers of agent orange made a mint from "operation ranch hand", killing about 400k people and causing 500k birth defects, it was the only the corporation, not the people who owned or ran it, that was responsible. I bet that was a big moral comfort to the peasants.
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  • Profile picture of the author Danny Cutts
    thats the thing with us entrepreneurs... nothing gets us down :-)

    Every cloud has a silver lining
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  • Profile picture of the author nav123
    I bet there will be a strong reason behind his actions. Anyway none of millionaire or billionaire became successful in few tries.
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  • Profile picture of the author tmauto
    I'm most confident he'll get up again. That what we all have to do in the circumstances.
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    • Profile picture of the author Greg guitar
      Originally Posted by tmauto View Post

      I'm most confident he'll get up again. That what we all have to do in the circumstances.
      But most people never find themselves in the position of being millionaire deadbeats.
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  • Profile picture of the author contentwriting360
    Banned
    Are you saying he may have gotten a writer from Elance to write his book?
    LOL... and you took it seriously.. haha
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  • Profile picture of the author visimedia
    really clever way. but it's not ethical ... because not to pay investors is not good thing. lol
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    • Profile picture of the author superowid
      Originally Posted by visimedia View Post

      really clever way. but it's not ethical ... because not to pay investors is not good thing. lol
      LOL. What a guy?

      I never agree with his book. Totally wrong concept. Now, it's proven he got bankruptcy, even it's only a trick. Bad game!

      But I love the way he plays his game with his book. :p
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  • Profile picture of the author Randall Magwood
    Incredible (how do you say that in Spanish? lol). Well, it did say he has 9 other businesses. Maybe he'll rebound with those.
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  • Profile picture of the author jamesrich1
    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.
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  • Profile picture of the author Joan Altz
    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.
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  • Profile picture of the author yukon
    Banned
    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.
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  • Profile picture of the author JeremiahSay
    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?
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by JeremiahSay View Post

      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?
      Yeah ...pray that someday he gets a conscience. :rolleyes:
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    • Profile picture of the author trevnkam
      Originally Posted by JeremiahSay View Post

      ...let's not judge but pray for them (particularly robert kiyosaki), shall we?
      Judge not that you be not judged...the old book says. Such wisdom!
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      • Profile picture of the author RichBeck
        Originally Posted by trev72w View Post

        Judge not that you be not judged...the old book says. Such wisdom!

        trev72x,

        That is applied incorrectly in some situations....

        Judging on your own "sense" of right and wrong is not right.... The "old book" tells us what is right and what is wrong...

        Now, as for debt.....

        Psalm 37:21
        The wicked borrows and does not pay back, but the righteous is gracious and gives.

        Ecclesiastes 5:5
        It is better that you should not vow than that you should vow and not pay.
        Take Care,

        Rich Beck
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  • Profile picture of the author Tbird2011
    What! I've been reading this guy for years!
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  • Profile picture of the author mark healy
    he has several other companies so wont be feeling the pinch, but still it has to effect him from a reputation stance
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    • Profile picture of the author JohnMcCabe
      Originally Posted by mark healy View Post

      he has several other companies so wont be feeling the pinch, but still it has to effect him from a reputation stance
      Lots of folks saying this, but I really don't think it will hurt him too much.

      The true believers and the starry-eyed kool-aid drinkers won't care, or they'll marvel at his financial wizardry and ache to emulate him.

      The potential business partners he'll hook up with will have the same lack of conscience he has, and won't care whether he screwed over someone else.

      The karma wheel is spinning, and sooner or later, he'll get what he deserves...
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  • He'll be fine, Forbes estimated his net worth at a cool 80 million, plus he owns like 10 other businesses..
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  • Profile picture of the author Perrymma
    Im sure their is a reason. Maybe he dosent want everyone getting his money. Hes in the top 10 greatest minds on this century.
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    • Profile picture of the author Patrick Batty
      I'm sure that the company that is going bankrupt will just be a bit of a blip for him.

      Possibly a bit of a blow to his ego, though.
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  • Profile picture of the author wilhb81
    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!
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  • Profile picture of the author OmarNegron
    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
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  • Profile picture of the author Tommy Gunnz
    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.
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    • Profile picture of the author seasoned
      Originally Posted by Tommy Gunnz View Post

      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.
      That is BULL!!!!!! There were people that became famous for being successful, that didn't go bankrupt. Earlier, there were no ways to go bankrupt.

      I once worked for a company that I PREDICTED on practically day one would go bankrupt. They loaded up their kiosk with LOTS of EXPENSIVE and NON STANDARD and NON POPULAR hardware. I was the one that wrote a lot of the software and tracked EVERY store! They had stores in almost EVERY state in the US before their FIRST store turned a profit. They EVEN started a national TV campaign! They also pulled a little trick to make themselves look bigger than they were. If customers knew the truth, OH BOY!!!!! I was eventually asked by an employee how they could still be in business. I shrugged and said "you got me". A few months later, they went bankrupt!

      People thought Trump was crazy on some projects, and THEY went bankrupt! As for corporations? YEAH, I have said for quite a time. Basically, you create an incompetent PERSON! A corporation was, and always HAS been, a PERSON under the law. The CEO is the head of a board making decisions for that person. If that person goes bankrupt, the people that have not comingled funds, or committed fraud(A legal unenforced requirement), can leave free and clear.

      It can amount to THEFT outside of that BUT, since the accused is NOT a NATURAL person, and doesn't generally exist, it is likely no charges will be made, etc....

      There WAS a time when such people would go to a debtors prison!

      Debtors' prison - Wikipedia, the free encyclopedia

      Steve
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      • Profile picture of the author trevnkam
        Originally Posted by seasoned View Post

        ....I once worked for a company that I PREDICTED on practically day one would go bankrupt. They loaded up their kiosk with LOTS of EXPENSIVE and NON STANDARD and NON POPULAR hardware. I was the one that wrote a lot of the software and tracked EVERY store! They had stores in almost EVERY state in the US before their FIRST store turned a profit. They EVEN started a national TV campaign! They also pulled a little trick to make themselves look bigger than they were. If customers knew the truth, OH BOY!!!!! I was eventually asked by an employee how they could still be in business. I shrugged and said "you got me". A few months later, they went bankrupt! ....
        Wow Steve...that's gotta be rough working for a company like that. Glad you got out before you got bit too
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        • Profile picture of the author seasoned
          Originally Posted by trev72w View Post

          Wow Steve...that's gotta be rough working for a company like that. Glad you got out before you got bit too
          Well, I worked as a CONTRACTOR. I DID end up losing $4000 on a preference garbage suit! A consultant can be in a difficult spot, because he took a client on, and promised things that could prevent his easily getting out of the deal. ALSO, I was HOPING they had some special deal, etc.... I wasn't SURE that that was really not intended until like the third store opened. They REALLY wanted to take over the entire US market, and were planning to go international. About the time their FIRST store turned a profit, the entire thing just DISAPPEARED! Today, outside of some old logos on google, and an announcement by a company that really DID have a preference, they aren't even a footnote.

          Steve
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    • Profile picture of the author Greg guitar
      Originally Posted by Tommy Gunnz View Post

      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.
      You win the prize for most ridiculous assertion of the day.

      What is your source for the "fact" that every successful business person has gone through bankruptcy at one time or other? Whoever it is, make sure you waste no more time reading their nonsense. And don't waste money on financial advice from people who view bankruptcy as a legitimate money management technique.
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  • Profile picture of the author seasoned
    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
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  • Profile picture of the author trevnkam
    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
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  • Profile picture of the author RedShifted
    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.
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    • Profile picture of the author JohnMcCabe
      Originally Posted by RedShifted View Post

      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.
      Trump is a pompous windbag who has lost a lot of money for a lot of people. People seem to forget that Trump made his seed money the old-fashioned way - he got it from Daddy...
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  • Profile picture of the author ArranWood
    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
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  • Profile picture of the author SeoMarketLeaders
    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.
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  • Profile picture of the author Sushiman1111
    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
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  • Profile picture of the author confidencemagnet
    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.
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    • Profile picture of the author DubDubDubDot
      Originally Posted by confidencemagnet View Post

      The experts hate Robert Kiyosaki because he goes against their grain.
      His books are written for WalMart shoppers that need some hope in their life. He tells people what they want to hear, not what they need to hear. He is the very definition of a snake oil salesman.
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  • Profile picture of the author mickyl
    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???
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  • Profile picture of the author RyanLow
    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.
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  • Profile picture of the author stan22
    Originally Posted by Calamaroo View Post

    Kiyosaki Bankruptcy Article

    But he's going to have the last laugh. If you have read his books, you know why. Hint: Something to do with the "power of corporations."
    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.
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  • 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 .
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by Nicholas Ferrante View Post

      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 .
      I guess you just skimmed over the part where they were an early investor responsible for his success. He's a jack a$$.
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  • Profile picture of the author CBusiness
    they will settle this out of court.

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

    i'll take any bets on this.
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    • Profile picture of the author KarileeO
      Originally Posted by CBusiness View Post

      they will settle this out of court.

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

      i'll take any bets on this.
      No bet. You're 100% correct.
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  • Profile picture of the author bdwilliams
    Rich Dad, Poor Dad is the most important book I've ever read. He'll get through this bump in the road.
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  • Profile picture of the author Alan James
    Originally Posted by Calamaroo View Post

    Kiyosaki Bankruptcy Article

    But he's going to have the last laugh. If you have read his books, you know why. Hint: Something to do with the "power of corporations."
    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
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  • Profile picture of the author SweetyPie
    The karma wheel is spinning, and sooner or later, he'll get what he deserves...
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  • Profile picture of the author yougpeter
    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.
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    • Profile picture of the author seasoned
      Originally Posted by yougpeter View Post

      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.
      WRONG! WRONG! WRONG!

      He DID go bankrupt personally! If he was the only officer, HE was the guy! That t was a legal manipulation so HE didn't have to pay is NOT meaningful here!

      It ISN'T totally different!

      NOW, if he was merely saved from an unjust claim, THAT is ONE thing! If he overspent and used this to effectively STEAL, that is ANOTHER!

      Steve
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  • Profile picture of the author Michael Oksa
    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.

    Originally Posted by CBusiness View Post

    the Bad guy can flip the entire story to make the good guy look bad.
    ...or he can, apparently, just declare bankruptcy.

    All the best,
    Michael
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  • Profile picture of the author learningprocess
    Banned
    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.
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    • Profile picture of the author seasoned
      Originally Posted by learningprocess View Post

      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.
      actually, EVERYONE knows that! HECK, even ANTS know that!

      Steve
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    • Profile picture of the author TheFBGuy
      Hahaha, wow, I didn't expect there to be a big discussion on here... good to see. But as far as Robert's actions are concerned, to pay 24 million for a company that is worth 2 million or so is ridiculous, but then again he got himself into this by refusing to pay what he agreed too.

      ... i wonder if Donald Trump gave him any counsel on this matter
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    • Profile picture of the author Joe Mobley
      Let me disagree with you on this a bit. There is more than enough information on the Internet to take some ideas to your legal or tax professional. I would not recommend that you do this yourself.

      As you can see by the emotional comments here, mindset may be the biggest obstacle to setting up an effective asset protection strategy.


      Joe Mobley


      Originally Posted by learningprocess View Post

      Only the rich know this info.
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  • Profile picture of the author Bruce NewMedia
    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
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    • Profile picture of the author FrankRumbauskas
      Originally Posted by Bruce NewMedia View Post

      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.
      There is a disclaimer (in fine print) somewhere on the title or copyright page of "Rich Dad, Poor Dad" that much of the book is taught through a fictional story. So it's no secret that Rich Dad is made up.

      Regardless, I learned a lot from him during my struggle to build a business, particularly his "Cashflow Quadrant" and "Retire Young, Retire Rich" books.

      I met him and Kim a few times when I lived in Phoenix and they're very very nice people and he struck me as very sincere in wanting to help his readers.
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  • Profile picture of the author daddykool
    'Rich Dad, Poor Dad... Still Very Rich Dad!
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  • Profile picture of the author czzzo
    Rich Dad... bankrupt Dad!
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  • Profile picture of the author czzzo
    Not going to help book sales for sure!
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  • Profile picture of the author FrankRumbauskas
    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.
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  • Profile picture of the author WebPen
    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!"
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    • Profile picture of the author Tayman
      Originally Posted by Justin Stowe View Post

      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!"
      Is it available instantly 24 hours a day?
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    • Profile picture of the author emigre
      Originally Posted by Justin Stowe View Post

      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!"
      I think I need you to write my WSO copy...
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  • Profile picture of the author Raydal
    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
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  • Profile picture of the author Bill Jeffels
    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




    .
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    • Profile picture of the author Joe Mobley
      Good call, Bill.

      For a very few thousand dollars, including legal fees, a foreign corporation can be part of your asset protection strategy.

      Joe Mobley


      Originally Posted by Bill Jeffels View Post


      And don't forget offshore bank accounts.

      Bill Jeffels

      .
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  • Profile picture of the author JL8
    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.
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  • Profile picture of the author mikeye
    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?
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  • Profile picture of the author DenisBalitskiy
    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.
    Jajaj, i think there is something behind this "bankruptcy" as with Donald.
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    • Profile picture of the author theory expert
      Banned
      Originally Posted by Bruce NewMedia View Post

      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.
      _____
      Bruce
      Interesting....i remember Mr. Givens and after he was in trouble with the law people were still saying his book was one of the best. I looked on amazon a few years ago and his book was still 4 stars (years after his death)! People loved that guy and his infomercial was persuasive to me as well. Unfortunately, his wiki page don't look too glamorous. so sad
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  • Profile picture of the author Austin80ss
    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.
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  • Profile picture of the author SetOnSuccess
    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.
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  • Profile picture of the author Bill Jeffels
    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



    .
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  • Profile picture of the author Strasburgo
    *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.
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  • Profile picture of the author ARealBiz
    That's a way to seperate a big player from a small player. Corporation bankruptcy and personal bankruptcy.
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    • Profile picture of the author Joe Mobley
      How not to become a small player, solid asset protection.

      And not worrying what someone else thinks is the morally correct thing to do.

      Joe Mobley


      Originally Posted by ARealBiz View Post

      That's a way to seperate a big player from a small player. Corporation bankruptcy and personal bankruptcy.
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  • 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!
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  • Profile picture of the author Shubh Ashish
    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.
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    • Profile picture of the author Michael Oksa
      Originally Posted by shubhashish View Post

      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.
      But how do financially uneducated people know what's good or bad? They don't.

      Maybe the book "inspired" people, and that's fine, but there is also some questionable information in it--information that could get people into a lot of trouble.

      Ultimately, the book is filled with a lot of clever sayings that sound deep, but really don't say much at all. I think that's what makes it so popular--people read into it what they want it to say.

      I'm not being critical because RK is successful, I'm being critical because it's deserving of criticism (in my opinion).

      All the best,
      Michael
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      "Ich bin en fuego!"
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      • Profile picture of the author VanessaB
        Originally Posted by Michael Oksa View Post

        But how do financially uneducated people know what's good or bad? They don't.

        Maybe the book "inspired" people, and that's fine, but there is also some questionable information in it--information that could get people into a lot of trouble.

        Ultimately, the book is filled with a lot of clever sayings that sound deep, but really don't say much at all. I think that's what makes it so popular--people read into it what they want it to say.

        I'm not being critical because RK is successful, I'm being critical because it's deserving of criticism (in my opinion).

        All the best,
        Michael
        I've been following this thread for days... and I stayed out of it, because this forum is not only not the proper place to give a full education on real estate investing and business law, but also because it generally falls on deaf ears around here anyway... but I have to ask...

        Specifically, what is that you think is in that book that is "questionable information in it--information that could get people into a lot of trouble"?

        I ask this because I am kind of an 'authority' on the subject of real estate investing and finance.
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  • Profile picture of the author michaelplies
    well he didn't filed for personal bankruptcy,
    just that one company. he still has lots of dough and businesses that are doing well.
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    • Profile picture of the author Nick Walsh
      read most of his books, though some of his products have gone very expensive over last few years
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  • Profile picture of the author charidemos
    it seems that waters run deep...
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  • Profile picture of the author lezzur
    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.
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  • Profile picture of the author Shellyannr
    I read his books. This is the gateway to something big for him. Wouldn't worry about this at all.
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