Pinky Cole scored a major court victory when a judge ordered creditors to return her home that was seized during bankruptcy.
Pinky Cole scored a major legal victory when a federal judge ordered creditors to return the Loganville home they took from the Slutty Vegan founder.
“I am relieved that the court has authorized me to recover my property,” Cole told Channel 2.
The ruling marks a major victory for Cole, which filed for Chapter 11 bankruptcy in February. According to court documents, she owes $1.2 million to the U.S. Small Business Administration and $192,000 to the Georgia Department of Revenue.
Creditor Guardian Asset Management has seized the property, but Cole’s legal team argued the move violated the automatic stay, a court order that halts creditors’ actions once a bankruptcy is filed. The judge agreed with Cole’s attorney and ordered the locks to be changed and the property returned to her.
“I really hope this is a lesson to creditors who are blatantly violating the automatic stay and hurting debtors because it’s not right. But I feel like I was vindicated and I’m happy that my property is back in my possession,” Cole said.
Cole’s case drew attention because she was the only reporter in the federal courtroom when the judge made his ruling.
The decision came after her lawyers successfully argued that the Guardian’s seizure violated bankruptcy protection.
“I’m just happy to get something back that’s mine, so it’s a good day,” Kerr said after the verdict.
Cole’s lawyers are expected to file a bankruptcy plan with the court in the coming days, according to bankruptcy experts. The plan will outline how she plans to tackle her massive debt while rebuilding her business empire.
