If someone is facing overwhelming debt, Chapter 7 bankruptcy may be an option. Financial challenges can affect people from all walks of life, including those who claim to be finance savvy.
Readers in Cleveland, Tennessee, will be interested to know that the author of the popular "Rich Dad, Poor Dad" books, Robert Kiyosaki, has filed for Chapter 7 bankruptcy for his company Rich Global, which was reportedly worth a few million dollars. The bankruptcy comes after Kiyosaki was ordered by the court to pay almost $24 million to The Learning Annex, the company that set up the public speaking events that helped catapult him to fame in the finance world.
According to The Learning Annex's founder, Kiyosaki had agreed to give the company a percentage of his profits in exchange for the company's promotion of his brand. The company was responsible for several of his more high-profile speaking engagements, including one held at Madison Square Garden in 2002.
Kiyosaki, whose first book was published in 1994, built his fame and reputation after he appeared on daytime television shows such as "Oprah," and his lectures were also shown on PBS. In spite of the bankruptcy filing, Kiyosaki is likely to still come out okay. He is still worth about $80 million, according to Forbes, and he is the owner of several other companies and author of 11 titles.
Managing heavy debt can certainly be a difficult challenge. Tennesseans facing such a situation may find that personal bankruptcy is at once the most responsible and alleviating choice.
Source: Daily Finance, "'Rich Dad, Poor Dad' Author Files for Chapter 7 Bankruptcy," Jill Krasny, Oct. 12, 2012