14 comments

[ 3.6 ms ] story [ 50.7 ms ] thread
Title is very misleading - this is not personal bankruptcy, it's one of his shell corporations declaring bankruptcy to avoid a court judgment. In that context, it's a rousing success: he knows how to play the game well enough that he can renege on a $24M obligation and still keep his $80M of personal assets intact.
I'd argue that this is absolutely not a "rousing success" or "play[ing] the game well enough". He used a legal trick to avoid his side of a financial obligation. If all businesses behaved this way then commerce would be impossible.
Isn't one of the main purposes of corporations to shield the private money of the owners? I think you have illusions about economics :-)
Yes, but obviously there is a line between shielding private money from business-related risks and intentionally running a company into bankruptcy to avoid liabilities. Although I agree that this line is a bit blurry.
That was supposed to be said with all due cynicism. It doesn't come across very well on the Internet.
All business behaves this way and everything goes smoothly. You shouldn't demean someone for using a trick because business is game of tricks.
Mods should do something about these kinds of titles.
(comment deleted)
The title is taken from the original New york post article.
...which is newsstand-bait.
Link bait title.

"Kiyosaki’s Rich Global LLC filed for bankruptcy after being ordered to pay nearly $24 million to the Learning Annex and its founder and chairman, Bill Zanker."

Money which had long before left Rich Global LLC to Kiyosaki's pocket or his other Corporate entities.

What's the inside story on his dispute withe Learning Annex?
I guess it's example of passive aggressive income