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Judge Orders Return of Pinky Cole’s Seized Rental, Sanctions Creditor

The decision restores income she plans to use during her Chapter 11 reorganization.

Overview

  • A federal bankruptcy judge ruled the Loganville, Georgia, rental must be returned to Pinky Cole after creditors took control during her case.
  • The court found Guardian Asset Management violated the automatic stay, which is the rule that pauses collection once a debtor files for bankruptcy.
  • Guardian was ordered to cover Cole’s attorney’s fees and related costs for what the judge described as disregard for bankruptcy protections.
  • Guardian had entered the six-bedroom home, posted a notice, and locked Cole out, which cut off rent she planned to use to repay creditors.
  • Court filings in the active Chapter 11 list about $1.2 million owed to the Small Business Administration and roughly $192,000 to the Georgia Department of Revenue.