Dubai Court Declares Man Insolvent After He Fails to Settle Dh4.2M Debt

The Dubai Civil Court has declared a Gulf national insolvent after he failed to settle debts exceeding Dh4.2 million, following an audit of his liabilities and an assessment of his financial position by an insolvency trustee.

 

The court had accepted the debtor’s application in February 2026 and initiated insolvency proceedings. It appointed an insolvency trustee to publish the decision, verify the claims against the debtor and prepare a report assessing his financial circumstances.

 

The audit established that the debtor owed approximately Dh4.216 million to a private hospital, in addition to around Dh18,000 owed to the Dubai Electricity and Water Authority (DEWA). The court subsequently approved the outstanding debts, which totalled more than Dh4.2 million.

 

The financial assessment also found that the debtor had only about Dh1,200 in his bank account. His only other identified asset was a 2008-model car with an estimated market value of approximately Dh13,000.

 

The court found that the debtor’s available funds were insufficient even to cover the costs of the insolvency proceedings. The insolvency trustee also found no other assets that could be liquidated and distributed among the creditors.

 

Based on the findings, the court declared the debtor insolvent and brought the insolvency proceedings to an end after preparing and approving the list of creditors.

 

As part of the judgment, the court barred the debtor from obtaining new loans or financing, or entering into new financial obligations, for three years from the date of the judgment. The restriction does not apply to obligations necessary to meet his essential needs and those of his dependants.

 

The court also ordered that his name be entered in the special register of insolvent persons and that Al Etihad Credit Bureau be notified of the judgment.

 

For enquiries or further information, contact ask@tlr.ae or call +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.