Business Leverages And Personal Leverages. (2)
Read? Business Leverages And Personal Leverages.
It is world between personal bankruptcy and private limited/limited company bankruptcy!
Don't anyhow hor!
Personal bankruptcy may drag in the whole family together to suffer!
What do we know about Donald Trump's four bankruptcies?
Trump describes these bankruptcies as if no one was hurt in the process, except high rollers and sharks. He says that he has started hundreds of companies, but only used bankruptcy proceedings four times
He and his family were never hurt by any of these four bankruptcies!
Similarly Rich Dad. Poor Dad also bankrupt once; but he is still multi-millionaire today!
ReplyDeleteFor many small companies in S'pore ... Banks still require the directors to act as personal guarantors for company loans.
ReplyDeleteCoz banks know that small companies not much assets & during bad times operating cash flows dry up.
Hence many small biz men family homes n personal savings are on the line even though pte ltd company. :O
Spur😃
FORMER Nominated MP Chia Shi Teck on Wednesday lost his appeal against being made bankrupt but will hardly go through life as a pauper.
DeleteIn fact, in his own words, he will be a “million-dollar bankrupt.”
This is because Chia, who just turned 55, will have a six-figure sum in his Central Provident Fund if he sells his terrace house in Loyang Rise, which was bought partly with his CPF savings.
Since creditors cannot seize CPF funds, Chia can technically keep the money.
Chia, once executive chairman of the Sesdaq-listed garment company Heshe Holdings, owed four banks about $17.5mil (RM37mil) and was declared a bankrupt on July 18.
Read more at https://www.thestar.com.my/news/regional/2003/08/15/former--nominated-mp-to-stay-a-bankrupt/#g5JhmJTGVQoQ0sAV.99
The moral of story i top up your CPF to the max before venturing out with other pple money.
DeleteUnder CPF Act, once you withdraw your monies it can be subject to creditors.
DeleteHence he cannot withdraw a lot ... Maybe just enough to cover very modest expenses.
Anyway will be managed by official assignee in terms of amount & frequency of withdrawal.
At least leftover cpf monies won't be part of his estate after death for creditors to go after ... Will go to his nominees for them to enjoy haha.
Spur😃
CW
ReplyDeleteMoral of story:
Front afraid of wolf, back afraid of tiger - read Rich Dad Poor Dad only sees passive income.
Youths (and those young at heart) who don't know what cannot be done - read Rich Dad Poor Dad only see the advantage of being Business OWners ;)
We see what we want to see.
Can't make it in trading say trading toxic.
Can't study say study so much for what?
Can't emigrate say those that do "unpatriotic"...
Can't get married say single life fantastic!
LOL!