Robert E. Bethel and Jean A. Bethel

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
WILMINGTON DIVISION
IN RE:
ROBERT E. BETHEL and
JEAN A. BETHEL
DEBTORS CASE NO. 07-00808-8-JRL
____________________________________________________________________________
ORDER
This case is before the court on the trustee’s objections to claims filed by LaChonta, Dave
Witmer, and Kenneth E. Haigler and Tom Taft. On November 14, 2007, the court conducted a hearing
on this matter in Wilmington, North Carolina.
On March 5, 2007, Mr. and Mrs. Bethel (“debtors”) filed for relief under chapter 7 of the
Bankruptcy Code. On July 28, 2007, LaChonta filed a proof of an unsecured nonpriority claim against
the debtors in the amount of $103,016 for goods sold to Bethel and Company, Inc., the debtors’ North
Carolina corporation. LaChonta alleges that it contracted to supply Bethel and Company, Inc. with
outdoor hardwood furniture. LaChonta further alleges that Bethel and Company, Inc. suspended
payments on March 19, 2006, and it now seeks to establish an unsecured nonpriority claim against the
debtors.
SO ORDERED.
SIGNED this 20 day of November, 2007.
________________________________________
J. Rich Leonard
United States Bankruptcy Judge
____________________________________________________________
Case 07-00808-8-JRL Doc 178 Filed 11/20/07 Entered 11/20/07 15:44:57 Page 1 of 3

1LaChonta alleges, and Bethel & Company, Inc.’s corporate documents filed with the North
Carolina Secretary of State indicate, that Mr. Bethel is the President of Bethel & Company, Inc.
2
The trustee objects to this claim on the basis that there is no evidence that the debtors are
personally liable for their corporation’s debt. Under North Carolina law, corporate officers are
generally not personally liable for actions taken in their capacity as a corporate officer.1 See N.C.
Gen. Stat. § 55-8-30(d). This remains true even if the corporate officer is also the corporation’s sole
shareholder. N.C. Gen. Stat. § 55-6-22; see also Henderson v. Sec. Mortgage & Finance Co., 160
S.E.2d 39, 44 (N.C. 1968). Although the court does not dispute the validity of LaChonta’s claim
against the debtor’s corporation, LaChonta does not assert any grounds upon which the debtors might
be personally liable for corporate acts. Therefore, the court sustains the trustee’s objection to this
claim.
On July 18, 2007, Dave Witmer (“Witmer”) filed a proof of an unsecured nonpriority claim
against Mr. and Mrs. Bethel in the amount of $10,000 for a check made payable to “Bethel and
Company.” The trustee objects to this claim on the basis that there is no evidence that the debtors are
personally liable for this debt. In response to the trustee’s objection, Witmer has filed a letter with
the court stating that the $10,000 check was a loan to cover operating expenses, and that it was to be
paid back promptly. Witmer attaches a copy of this check to his response letter. There is no evidence
that the debtors personally guaranteed the debt, nor is there evidence that the money was loaned to the
debtors, personally. To the contrary, the check was issued to “Bethel and Company” and negotiated
by “BETHEL AND CO DBA TYNDALL CREEK FURNITURE.” The court sustains the trustee’s
objection to this claim.
On July 27, 2007, Kenneth E. Haigler and Tom Taft filed a proof of a secured claim against
Mr. and Mrs. Bethel in the amount of $125,684.38 for real estate, attaching an unrecorded deed of trust
Case 07-00808-8-JRL Doc 178 Filed 11/20/07 Entered 11/20/07 15:44:57 Page 2 of 3

3
on the debtors’ personal residence. The trustee objects to this claim because the claimants did not
obtain a determination of secured status pursuant to 11 U.S.C. § 506. At the November 14, 2007
hearing, the trustee represented to the court that the claimants have agreed to enter into a consent order
allowing their claim as an unsecured nonpriority claim. Entry of the consent order when tendered will
resolve this objection.
“END OF DOCUMENT”
Case 07-00808-8-JRL Doc 178 Filed 11/20/07 Entered 11/20/07 15:44:57 Page 3 of 3