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Rich dad or poor dad? Company of bestselling author bankrupt

In the 1990s Robert Kiyosaki wrote the book "Rich Dad, Poor Dad." The book, which gave personal financing tips, put the author on the New York Times Best Seller list. He also went on to write other books regarding finances, including "Midas Touch" and "Retire Young, Retire Rich."

However, regardless of the financial tips he may have been giving out to others, Kiyosaki recently filed for Chapter 7 bankruptcy through his company, Rich Global LLC. The claim is a previous judgment against the company put the liabilities way above the assets. After this, bankruptcy just seemed like the most viable option.

According to the Chapter 7 bankruptcy filing, Rich Global LLC has assets of $1.8 million, but liabilities of $26 million. The majority of those liabilities are attributed to a $23.7 million judgment for a promoting company that had helped to arrange the author's public speaking arrangements.

According to the Learning Annex's founder and president, a deal had been worked out. The company would promote the author and create a brand for him, and in turn, would get a percentage of the profits. However, the claim is Rich Global LLC went back on the deal and never paid up, which is why the two ended up in court.

However, despite the fact that one of Kiyosaki's companies filed for bankruptcy, the author and public speaker does business through a number of different companies, including Rich Dad Co., which did not file for bankruptcy. Additionally, when it comes to the finances tied up in the lawsuit, it should be noted this has nothing to do with the author and his wife's personal finances. Rather, it is just the business.

Source: ABC News, "'Rich Dad, Poor Dad' Author Files for Bankruptcy for His Company," Susanna Kim, Oct. 12, 2012

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