Insolvency and Enforcement Proceedings

Financial collapse is not the end of the road; it is a starting point for rehabilitation. We accompany debtors and creditors in insolvency proceedings and in enforcement proceedings, with one goal: to give you back control of your financial life.

A legal way out of debt

The Insolvency and Financial Rehabilitation Law, 5778-2018, changed the approach: the purpose of the proceedings is not to punish the debtor but to rehabilitate them financially, alongside a fair distribution of the assets among the creditors. Properly managed proceedings can lead to a full discharge from debts, the lifting of restrictions and a fresh start.

In parallel, we represent creditors and debtors at the Enforcement and Collection Authority offices: from consolidating files and lifting restrictions and attachments, to effective debt collection for creditors.

What we handle

  • Opening insolvency proceedings for individuals and self-employed persons, with full support up to the discharge order
  • Forming debt arrangements outside the proceedings: direct negotiation with creditors and banks
  • Representing creditors in insolvency proceedings: proofs of debt, creditors' meetings and objections
  • Lifting restrictions: travel bans, driving license restrictions, restricted bank account
  • Consolidating enforcement files and spreading debts according to real ability to pay
  • Lifting attachments on salary, vehicle, bank account and assets
  • Opposition to enforcement of a promissory note and a "paid" defense
  • Debt collection for creditors: fast, determined and results-focused

What insolvency proceedings for an individual look like

Review and filing

Full mapping of debts and assets, examination of alternatives, and filing an application for an order opening proceedings.

Interim period

Receiving an order opening proceedings, a stay of collection proceedings, and the trustee's review of your financial situation.

Rehabilitation plan

Issuance of a financial rehabilitation order: payments according to real ability to pay and for a fixed period.

Discharge

At the end of the period: discharge from the debts, lifting of the restrictions and a fresh start.

Questions worth asking

Will I lose my home in insolvency proceedings?

Not necessarily. The law grants significant protections to a residential home, and in many cases it is possible to form a solution that keeps the roof over your head, for example through an arrangement or alternative financing. Each case is examined on its merits, and this is exactly one of the issues we will examine at the consultation meeting.

How long do the proceedings take until discharge?

The default under the law is a payment period of three years from the issuance of the financial rehabilitation order, but the court may shorten or extend it according to the circumstances, the debtor's cooperation and their ability to repay.

I have enforcement files. Is insolvency the only solution?

Not at all. Sometimes consolidating files, a debt arrangement with the creditors, or specific defense claims (such as opposition to enforcement of a promissory note) will be a faster and cheaper solution. We examine all the alternatives before recommending a course of action.

I am a creditor. How do I collect a debt from someone who has entered insolvency?

A proof of debt must be filed within the time set by law, and the proceedings must be followed actively. Professional representation at these stages, including at creditors' meetings and in objections, directly affects the rate of recovery.

Other practice areas of the office

Inheritance and Wills

Drafting wills, applications for inheritance orders and probate orders, estate administration, and representation in objections and inheritance disputes.

Inheritance and wills page

Contracts and Real Estate

Supporting sale and purchase transactions, preliminary due diligence, real estate taxation, lease agreements and drafting commercial contracts.

Contracts and real estate page

Other areas served: the Sharon area, Or Akiva, Pardes Hanna, Netanya and the surrounding area.

The debts will not wait. Neither do you have to.

The earlier you contact us, the more options there are. A discreet consultation meeting will map out the way for you.

Book a discreet meeting
For an initial consultation call: 055-9773232