Covid-19 is being blamed (amongst other things) for mental health issues.  A recent case served as a warning to petitioning creditors to do their homework before issuing proceedings.

In Kumar v Hellard [2021] EWHC 181 (Ch). A petitioning creditor issued bankruptcy proceedings against Mr Kumar.  There was evidence that Mr Kumar was suffering from Alzheimer’s disease and dementia.   The District Judge allowed the bankruptcy order to go ahead.

Subsequently, Mr Kumar appealed, arguing that he did not have litigation capacity.

The appeal was successful on the grounds that the Court was convinced that Mr Kumar did not have capacity.

The petitioning creditor had a very costly bill to pay!

for more information on Bankruptcy and any other insolvency procedure, please contact us on 01377 257788.

If your business has been affected by the pandemic, for free advice call Stella on 01377 257788 and she will make you an appointment with one of our insolvency professionals. we have offices in Driffield, Grimsby, Hull, Scunthorpe and York. Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.