Ryan C. Wood
I keep reading over and over again that Rich Dad Poor Dad author Robert Kiyosaki filed for bankruptcy. It seems like most of the internet articles are just rehashed plagiarism with the wrong facts repeated over and over again. I did see a couple titled that Mr. Kiyosaki had filed corporate bankruptcy, which is a little better, but according to most bankruptcy lawyers, this is still not very accurate. Rich Global LLC filed for bankruptcy protection under Chapter 7 of the bankruptcy code in the United States Bankruptcy Court District of Wyoming, Bankruptcy Case No. 12-20834. Robert Kiyosaki did not file for personal bankruptcy protection as irresponsibly reported on television and by a number of rehashed internet articles.
Since the early 1800?s the United States Supreme Court has recognized corporations as separate legal entities from the owners and have some of the same natural rights and legal rights as a ?person.? See Trustees of Dartmouth College v. Woodward ? 17 U.S. 518 (1819) When Rich Global, LLC filed for bankruptcy protection the owner or owners did not file bankruptcy. The legal fiction of Rich Global LLC being a person is what filed for bankruptcy protection. This is the whole point in creating a separate legal entity to do business under and attempt to limit the liability of the owners of the corporation or limited liability company. This will be the second article I write regarding the distinction between a corporation or a limited liability company and those who own them. The distinction between a corporation or limited liability company filing bankruptcy and those who own it seem to be completely lost on the mainstream media. Mr. Kiyosaki should sue the hundreds of media sources that reported he filed for bankruptcy. Mr. Kiyosaki is a multimillionaire and will most likely continue to be one. I think the most famous victim of falsely being accused of filing for bankruptcy is Donald Trump. To my knowledge, and I am still waiting for someone to prove me wrong, Donald Trump has never filed personal bankruptcy. One of the companies he used to have a significant investment in, formerly known as Trump Hotels & Casino Resorts, has filed for bankruptcy protection a number of times. I should know, I still own a few shares of the new company that was formed after the multiple bankruptcy filings of Trump Hotels & Casino Resorts.
Rich Global, LLC?s bankruptcy lawyers filed a bankruptcy protection on August 20, 2012, as result of Learning Annex Holdings, LLC and Learning Annex, LLC and Learning Annex, L.P. (Case No. 09 Civ. 4432 (SAS)(GWG) winning a judgment against Rich Global, LLC totaling $23,687,957.21. The bankruptcy petition lists $1,794,405.26 in assets and $25,921,205.11 in liabilities. Rich Global, LLC had $591,728.00 in income for 2010 from Profit participation and licensing revenue. Rich Global, LLC did not have any income in 2011 or in 2012. There appears to be other pending lawsuits that entities owned by Robert Kiyosaki are involved in though.
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