Dubai court declares man insolvent after he fails to pay Dhs4.2 million debt

Dubai Civil Court declared the insolvency of a Gulf national, after it was proved that he failed to pay his debt, which was estimated at an amount exceeding Dhs4.2 million, following the completion of the debt audit and financial status assessment by the insolvency trustee.

The court had accepted the debtor's request in form in February 2026 and opened insolvency proceedings, appointing an insolvency trustee who was tasked with publishing the decision, auditing the debts, and preparing a report on the debtor's financial situation.

The auditing procedures proved there was a debt in favour of a private hospital worth approximately Dhs4.216 million, in addition to about Dhs18,000 due to DEWA, bringing the total debt approved by the court to about Dhs4.2 million.

The audit also revealed that the debtor only possessed a bank balance estimated at about Dhs1,200, along with a 2008 model car with a market value estimated at about Dhs13,000, while it became clear to the court that his funds do not even cover the legal procedure expenses, and the insolvency trustee did not find any other assets which could be liquidated to distribute their proceeds.

Accordingly, the court declared the debtor's insolvency and terminated the insolvency proceedings, after preparing and approving the list of creditors, and prohibited him from obtaining a new loan or financing, or entering into new obligations, except as necessary to meet his essential needs and those of his dependents, for a period of three years from the date of the judgment, while recording his name in the special register of insolvent persons and notifying Al Etihad Credit Bureau of the judgment.