AVLF's New Creditors' Bankruptcy Program Goes Undefeated

Great news! Serving as an AVLF volunteer attorney, you have helped your client win her case - or are on the verge of doing so - against the slumlord (or recalcitrant employer, etc.) that took advantage. But uh oh, the scoundrel claim-debtor has filed for bankruptcy protection, and you know nothing about the bankruptcy process.

More great news! In partnership with the Bankruptcy Law Section of the Atlanta Bar Association, AVLF has established the Low Income Creditors Assistance Project (with the catchy acronym LICAP). Now, sophisticated bankruptcy practitioners will take these matters on a pro bono basis for AVLF clients holding claims or judgments where the defendant-debtor's files for bankruptcy.

LICAP is already a success. AVLF Saturday Lawyer program client Mr. D, a hardworking and highly skilled chef working for an unscrupulous restaurant owner, eventually had to quit because the owner kept underpaying him. In the end, the employer withheld his last few paychecks and Mr. D ended up out about $3,000 in wages - wages that were hard-earned and desperately needed to support his family.

Mr. D's case was first assigned to Taylor Tribble, an amazing attorney from Huff, Powell & Bailey. When her well-written demands were ignored, Taylor did not hesitate to file suit and fight for her client. Before a judgment could be obtained, the employer filed for bankruptcy, but only after transferring assets and fully staying in business. 

For too many years and in too many cases, a defendant-employer or landlord's bankruptcy filing marked the end of the road for AVLF clients; bankruptcy court was just not a forum with which we or our volunteers were familiar and the filing itself suggested hope for any collection on a judgment was lost. As AVLF's ground-breaking judgment collection project - Dollars for Judgments - has grown, we have seen even more judgment-debtor employers and landlords file for bankruptcy as they ran from our skilled collection attorneys. Those collection efforts typically stopped at the bankruptcy court door.

This is no longer the case. Bankruptcy Section Chair Alison Elko Franklin (who also helped develop the project with AVLF), of McKenna Long & Aldridge, teamed with top-flight accounting firm FTI Consulting - another AVLF partner under this program - to take on the inaugural LICAP case, filing a proof of claim for Mr. D. After one eventful and entertaining Creditor's Meeting in the bankruptcy court, the employer-debtor's attorney approached Alison about a settlement, and Mr. D was paid, in full and much faster than any traditional collection efforts would have achieved. While it is tempting to stop with this undefeated record, AVLF is excited to push forward with this new innovative program - and new cases are already in the wings! Alison and FTI have set the bar pretty high, but we are confident this project will continue to produce similar results and, in any event, will always make our clients know that no stone was left unturned in our efforts to get them justice. 

When clients show up at AVLF, they are often paralyzed by their circumstances; you can hear it in their voices. One volunteer recently reported that when she called her client after the successful collection on her judgment, she could literally hear the change in her client - the paralysis was giving way in favor of the start of a better future for her and her family. Through AVLF and the Bankruptcy Section of the Atlanta Bar Association's Low Income Creditors Assistance Project (LICAP), we have hopefully removed yet another barrier to getting all of our clients some justice and hope for a better future. To learn more or get involved, please contact our Deputy Director, Michael Lucas, at mlucas@avlf.org.