Loans, Bankruptcies, and Transfers
Padgett and her husband Donald were owners of the Main Office Supply Co. Her husband ran the business for three decades; she was the company's treasurer. The Coshocton business began experiencing financial troubles in 1999; it went from 40 employees to about eight when it closed in 2006.
In August 2004, the Small Business Administration gave the business a $737,000 loan guarantee on a loan from the JP Morgan Chase Bank. On the same day, the Padgetts renegotiated a three-year-old loan for $100,000 from the Home Loan Savings Bank in Coshocton. In October 2005, the Padgetts filed for bankruptcy for their business and defaulted on the two loans. The bankruptcy filing was subsequently tossed out by a federal judge when the Padgetts violated a court order.
On June 15, 2006, the Padgetts filed for personal bankruptcy, listing $1.16 million in debts against $202,143 in assets. Joy Padgett said most of the debt came from Main Office Supply Co. As of September 8, the Padgetts owed at least $20,000 on the local loan, and more than $720,000 on the federally guaranteed loan.
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