Lexington Blue roofing company owner, wife declare bankruptcy. What they owe
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- Brad and Courtney Pagel filed Chapter 7 personal bankruptcy citing $2.3M owed.
- Lexington Blue converted to Chapter 7 liquidation, listing over $3.2M in debts.
- Pagels face Kentucky AG consumer suit, frozen accounts and creditors meeting Dec 18.
The owner of failed Kentucky roofing company Lexington Blue has filed for personal bankruptcy.
Brad Pagel and his wife, Courtney, filed for Chapter 7 bankruptcy in Tennessee in November, citing less than $175,000 in assets with more than $2.3 million owed to more than 50 creditors.
This is a separate bankruptcy from the roofing business. Lexington Blue has been in bankruptcy since June, after the company closed abruptly in April, owing hundreds of homeowners for new roofs. Now converted to Chapter 7 liquidation bankruptcy, Lexington Blue has declared more than $3.2 million in debts to former customers and employees.
The Pagels and the company also are facing a consumer protection lawsuit from the Kentucky Attorney General’s Office in state court that could result in thousands of dollars in penalties for hundreds of claims. According to the AG’s office, Lexington Blue may owe nearly $5 million to homeowners who paid deposits for unrepaired roofs.
The bank accounts of the Pagels and some former Lexington Blue managers have been frozen by a Fayette Circuit Court judge.
No one has been criminally charged in the Lexington Blue case.
Lexington Blue owner assets, debts
According to the new bankruptcy filing, the Pagels have two Ford F-150 trucks and a car; Ford financing has filed a $54,000 creditor’s claim against one of the trucks. Among the other personal assets listed: $18,000 in Bitcoin and about $45,000 in IRA accounts.
They also list unknown deposits in three bank accounts and a Robinhood brokerage account. On the bankruptcy document, Brad Pagel said that in addition to $25,000 in earnings for 2025, he made more than $423,000 from his business in 2024, while Courtney Pagel said she made $55,000 in wages, commissions, bonuses and tips in 2024.
Brad Pagel also said in the document that he retained more than $119,000 from the sale of his Lexington home in January 2025 and withdrew $25,000 this year from a 401K plan.
They listed monthly income at $8,500; Brad Pagel said he “has been taking odd jobs to make ends meet.” The Pagels also said their monthly expenses total $8,495.
Brad Pagel said he owes the IRS more than $12,000 and an unknown amount to the Kentucky Department of Revenue.
Other liabilities listed as owed by at least one of the Pagels and another entity or person include unspecified claims to several homeowners, thousands in business-related debts and thousands to former employees who filed Equal Employment Opportunity Commission charges. Several of these debts are also listed on Lexington Blue’s bankruptcy petition.
There will be a meeting of creditors with interim trustee Eva Lemeh on Dec. 18 at 10 a.m. via Zoom, according to the docket. According to the docket, the meeting can be accessed at Lemeh: Meeting ID 372 289 8436 with Passcode 8779768977, or by phone at 615-570-2042.