Rich Dad, Poor Dad Company Files for Bankruptcy

Robert Kiyosaki’s company, Rich Global LLC, has declared bankruptcy. Mr. Kiyosaki often has extolled how the rich have taken advantage of certain laws and loopholes in order to build wealth, whereas the vast majority of people are simply unaware of these tactics and that is why they remain poor.  The corporate bankruptcy filed on behalf of his company is indeed a restructuring of the company’s debts, however more importantly, it should be noted that even the “richest” out there may resort to bankruptcy when needed.

Fed to Buy $40 billion PER Month in Mortgage Bonds

The Fed announced it will purchased $40 billion per month in mortgage bonds.  It did not say for exactly how long.  What this means is that there will most likely be a shift in how the banks will treat mortgages – both in offering and modifying existing ones.  Theoretically, it will make home purchasing easier, and allow for more home mortgage modifications to help those who are struggling keeping up with their payments.  Let’s cross our fingers.

Credit Card Lawsuits and Judgments

Getting served a Summons and Complaint can be shocking for most people.  It usually threatens the Defendant with suing for a certain amount on a credit card.  If the Defendant doesn’t show up on the court date, the court will enter a default judgment if the Plaintiff’s attorney appears.  Filing for bankruptcy may be a good idea if you have a pile of lawsuits laying around.  If you earn an income, these Plaintiff creditors may try to garnish your wages or even levy bank accounts after receiving a default judgment.  Filing for bankruptcy prevents credit card creditors and their assignees from further attempting to collect on the debt, even if the lawsuit has been already filed.  This “automatic stay” is a powerful weapon when filing for bankruptcy and when the credit card debts and lawsuits are discharged, the debtor start fresh.

Warren Sapp Auctions off $6,500 worth of Air Jordan Sneakers

The need for bankruptcy does not discriminate among the sports.  Former NFL star Warren Sapp recently had to auction off a massive collection of Air Jordan sneakers for his bankruptcy case.  The Air Jordans were assets that could not be exempt and therefore becomes part of the bankruptcy estate.  Child support payments have priority over unsecured creditors such as credit cards, and therefore ahead in the line of creditors.

Jose Canseco Files for Bankruptcy

Further proof that the need for bankruptcy does not discriminate, former baseball Rookie of the Year and power slugger Jose Canseco has filed for Chapter 7 bankruptcy.  Many sports stars end up filing for bankruptcy because they are not able to maintain a lifestyle after the limelight has dimmed.  Bankruptcy is a tool for anyone who needs a fresh start and to wipe away their debts such as credit cards, medical bills and many other forms of liabilities.

List All Assets: Tell Your Attorney Everything

The importance of telling your bankruptcy attorney EVERYTHING that you have cannot be overstated.  If you have a doubt about whether your prized collection of Furby dolls is worth something, tell your attorney.  That Egyptian relic that is possibly real or fake, tell the attorney.  Even if you don’t think that rust bucket that’s been in your garage for 30 years is worth anything, tell your attorney anyway.  One of the jobs of a trustee is to add any assets to the bankruptcy estate during your case.  If the trustee later finds out that there is potentially valuable property that should have been in your bankruptcy case, the case can be reopened (even after the discharge of debts has been granted).

City of Stockton, CA Files for Bankruptcy

This past week, the California city of Stockton filed for Chapter 9 bankruptcy.  This enables the municipality to restructure its debts in order to attempt to resolve its financial crisis.  Just as the economy has affected individuals, we’ve seen companies, law firms, and now even cities utilizing bankruptcy as a tool to get a handle on their debts.