Robert Kiyosaki, the author of “Rich Dad, Poor Dad”, filed bankruptcy for one of his companies, Rich Global LLC in August.
In the 1990’s, Kiyosaki published the book, which focused on personal finance tips and real estate investing. According to ABC News, Rich Global LLC filed for Chapter 7 bankruptcy protection in a Wyoming bankruptcy court.
Reports indicate that the company was struggling financially because of a lawsuit filed by Learning Annex, a backer that helped arrange Kiyosaki’s public speaking events. Bill Zanker, the founder of Learning Annex, sued Kiyosaki after he allegedly failed to pay a percentage of profits from his speaking engagements, according to Forbes. A district judge in New York eventfully awarded Learning Annex $23.7 million, Forbes reported.
Court documents indicate that Rich Global LLC’s liabilities are nearly $26 million with assets of $1.8 million. Because Rich Global LLC filed for Chapter 7 bankruptcy, creditors will likely have no way of collecting debts outside of liquidation, as the company is no longer doing business.
If you have issues with mounting debt, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.