Whether to dismiss a bankruptcy petition on mental health grounds (HMRC v De Freitas)

Article summary

Restructuring & Insolvency analysis: The court considered in detail the issues to be considered when a bankruptcy petition is presented against a person who has a disability within the meaning of section 6(1) of the Equality Act 2010 (EqA 2010) by dint of their mental health. The court considered, on the facts of this case, that the petition should not be dismissed, as the petitioning creditor had followed the correct procedures and that there had been no breach of EqA 2010. The court also explored definitions of insolvency in the context of a petition hearing and, noting the absence of case law on this point, agreed to adjourn the hearing to allow payment of the debt. The court declined to dismiss the petition on the basis that the debtor could pay the debts, as there was no certainty that he would actually then pay the petition debt. Written by Mark Sands, Head of Insolvency at Apex...