Pinky Cole scored a major legal victory as a federal judge ordered creditors to return a Loganville home they seized from the Slutty Vegan founder.
“I feel relieved that the court gave me authority to reclaim my property,” Cole told Channel 2.
The ruling marks a significant win for Cole, who 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 had seized the property, but Cole’s legal team argued the move violated the automatic stay, a court order that halts creditor actions once bankruptcy is filed. The judge agreed with Cole’s attorneys and ordered the locks changed and the property returned to her.
“I really do hope that this is a lesson to creditors who brazenly violate the automatic stay and harm debtors because this was not right. But I feel vindicated, and I’m happy to have my property back into my possession,” Cole said.
Cole’s case drew attention as she was the only reporter in the federal courtroom when the judge made the ruling.
The decision came after her attorneys successfully argued that Guardian’s seizure violated bankruptcy protections.
“I’m just happy to get back what is mine, so today is a good day,” Cole said following the ruling.
According to bankruptcy experts, Cole’s attorneys are expected to present a bankruptcy plan to the court in the coming days. The plan will outline how she intends to address her significant debts while rebuilding her business empire.