While Alan was recovering in hospital his family sent a cheque for £400, an amount Alan claims he had agreed with hotel manager Peter Atherton
He said: "It was a shock when I got a letter from his solicitor demanding the full amount and then a court summons arrived. I don't know what reaction all the publicity will get but hopefully he will realise he has made a mistake.
"We really would like a quick end to this. I am about to be discharged from the army. Claire and I have our house to get sorted and I still have a lot of recovering to do. We could have done without this trouble."
But now hotel owner Peter Atherton is taking him to court, demanding £2,500 the reception would have cost.
The case is due to be heard in Birkenhead small claims court.
Mr Atherton said: "We regret having to take this action but we were led to believe by Alan that the costs would be covered by the MoD."
He added: "I had no idea how seriously Alan had been injured until yesterday. When he booked in September, 2002, we advised him to take out insurance.
"Now we know the full circumstances, we will be asking to meet the family and see if we can come to some compromise."
Alan's lawyer, David Kirwan, of Wirral-based Kirwan's solicitors, said: "It's an appalling story and a climbdown would be the right course of action here.
"This is a tragic case of a brave soldier who was seriously injured while fighting for his country.
"Any creditor in that situation should have thought long and hard before bringing an action in such tragic circumstances."
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