I previously blogged (here and here) the troubles at the American Justice School of Law, a non-accredited for-profit law school in Paducah, Kentucky.  Today’s National Law Journal reports that the school filed for bankruptcy protection on Tuesday.

The American Justice School of Law, formed in 2004, is no longer a functioning law school, and it is unclear what impact the bankruptcy filing will have on the Barkley School of Law. That school was formed this summer after the American Justice School of Law was effectively dissolved as an educational institution.

The closure of the American Justice School of Law, which was not accredited by the American Bar Association, was the result of a lawsuit filed in November 2007 by students against the administrators of the for-profit school. The suit alleged a number of misdeeds, including that administrators delayed disbursing student loans for living expenses.

New investors and new administrators were brought in this summer as a result of the settlement, and the Barkley School of Law was formed. Barkley has taken on the students from the defunct American Justice School of Law, though Dean Larry Putt said the school currently has only 10 full- and part-time students.

See also TMCnet.