Are you in debt? You cannot manage to pay one debt on time due to another one showing up? The interest rates keep increasing? You can breathe easy – you are in the right place, we can help: Debt erasure is the specialization of our office.
As the saying goes, “Admitting the problem is the first step towards a solution”, and if you are reading this then you are on the right track.
All you have to do is make up your mind and call us or leave your phone number. We will contact you within 24 hours, set up an appointment, and together, choose the best and quickest option for getting you out of your current financial situation (a meeting and consultation with us is free of charge).
Bankruptcy is not an easy process; however, it becomes easier and clearer thanks to the support of the lawyers in our office. We have helped many people and we will be glad to help you too.
The procedure of bankruptcy in Israel
There are situations where the financial obligations make the expenses of the debtor so high that it’s worth thinking about debt erasure or the procedure of bankruptcy. Unfortunately, it often happens that a person turns to us after his bank account has been foreclosed, he is not allowed to go abroad, his property gets repossessed and his driver’s license becomes limited. In this case, the execution office already deals with the debtor, for the purpose of making the debtor pay his debts.
The first thing that any bankruptcy lawyer will tell you: You should first consult with a professional in the debt erasure field. These consultations are free in almost all offices specializing in this field (and we are no exception), because every case needs to be separately examined with all of the components of the specific situation. We often find alternative solutions to conflicts to save you time, money and effort from all sides of the conflict.
If you realize, after the consultation that debt erasure is the best solution for your current situation, and bankruptcy will allow you to start anew, then we recommend reading the following:
The only thing you should care about before you hire a bankruptcy and debt erasure lawyer, is what is promised to you and how quickly it can be done.
If a lawyer promises to do it in 24 hours or at half price, then not only is it not true (the procedure goes through juridical proceedings, and the bureaucracy in Israel could do a lot better unfortunately), it also goes against the ethical guidelines of a lawyer. So, it’s worth thinking; should you entrust such delicate financial matter to such a lawyer.
No one is safe from such situations, and the first thing you should do, if you think about erasing debts is to consult a bankruptcy lawyer. There usually are alternative solutions to matters of debtors and creditors, which are less time-consuming and faster. You can ask questions by calling or leaving a message.
The standard procedure of bankruptcy includes the following stages
The 2019 reform.
Starting from September 2019, based on the recommendations of the official liquidator*, within the reform’s framework, measures were taken in the field of bankruptcy, aimed at optimizing the procedure of bankruptcy in favor of the debtor. Some of these are as follows:
For example, the term of 9 months, in which, a hearing about the debtor’s case is scheduled in the court, where a decision is to be taken about the recognition of the debtor as bankrupt, the postponement of the current case, and also conditions to follow for the debtor to get his debts erased (Usually immediately following the end of the hearing).
So, the first thing you should do is prepare and send, to the district court an application to recognize the debtor as bankrupt. In the following two months, the court will make a decision about whether to seize the debtor’s property with the aim of monetizing it and paying the creditors at the end of the bankruptcy process on one hand, and the suspension of any private collection from the creditors’ side (through the execution office or the law of tax collection) on the other.
Also, according to the decision, some limitations are applied to the potential bankrupt individual, along with some duties, such as, monthly payments to the official liquidator’s fund (according to the income and expenses of the debtor), prohibition from using cheques etc. Then, after the expiry of the 9 months period (according to the mentioned above reform) and the fair execution of all duties of the bankruptcy order (1980), the quick release from debts is possible.
The article above is by no means, juridical consultation and only reflects some aspects about the erasure of debts in Israel.
* General trustee and official liquidator – Official corporation, acting in accordance with the law on the general trustee, adopted in 1978. The general trustee acts independently, professionally and without bias, respecting the public interest and provides help for the weak layers of society.
The functions of the General Manager
The functions of the General Manager are numerous and varied, and include:
Determination of the location and management of ownerless property:
▪ Receiving inheritance and making donations in the favor of the government;
▪ Disposal of gifts, received by civil servants;
▪ Disposal of confiscated property;
▪ Representation of the legal advisor of the government in issues of inheritance, guardianship, in the process of declaration of death and the rights of missing persons;
▪ Supervision of trustees and executors on inheritance issues;
▪ Fulfillment of the role of the state attorney and the management of property dedicated to public purposes.
More information here:
*The above article is by no means a legal advice; any use of this information is solely under the reader’s responsibility.