Debt erasure at the execution office
A person who has many files at the execution office against him, or a person who has already unified the files and still owes a lot of money, is a person that needs, at one stage or another, to deal with the situation and find a solution once and for all.
The process of debt erasure is not simple. Filing forms and submitting an application is not enough. On the other hand, it can definitely be the best way to begin your life anew, at least economically speaking.
Adv. Daniel Yanovsky
In principle, the execution system was created for one goal – to help those that are owed money collect on their debts. In actuality, it has become an independent body that works by its own rules. If we try to understand the rationale behind the execution system, it is possible to use the advantages given to debtors and even erase debts!
Some statistics: According to the enforcement and collection authority’s research, published in April 2017, as of the end of November 2015, the number of registered debtors in the execution office is 642,629 people! Today, after almost 2 years, the number of debtors is even higher and stands at 8% of the total population of Israel – a very illogical and absurd situation.
Given the above, there has been a change in the legislation on September 1st, 2013, which allows a debtor to erase his debts by the process of bankruptcy. We are talking about an opportunity given to an individual, who has debts he cannot pay, to erase all of his debts to all of his creditors in one process.
Debt erasure – What does it mean?
The term “Debt Erasure” is not a juridical term, but it’s a synonym to the process of bankruptcy in Israel. Over time, the term “bankruptcy” has received a bad association and when people hear about bankruptcy, they immediately imagine some tycoon or a great corporation that has “trimmed” their debt at the expense of the citizens.
When we talk about the process of debt erasure, of course we mean the process of bankruptcy, only, the one that goes through it is an individual who got into debts which he cannot afford to pay off. So yes, it is also called bankruptcy but the process is completely different than for firms or other organizations – it is much easier and much faster and eventually, all of the individual’s debts to all of his creditors are erased.
Why is it important to use the help of an execution lawyer?
As was mentioned before, the execution system is overloaded with work; hundreds of new files are opened in all execution offices every day. As a result, the execution office workers will be glad to deny your application for debt erasure if they find a missing detail or if the application was not convincing enough (meaning less work for them).
The experience of an execution lawyer plays an important part here – An experienced execution lawyer knows what to emphasize in your application and when and where it’s best for you to submit your application. Arrange for appointments with some execution lawyers, listen to their advice and ask if they have been involved in similar situations in the past. The process of debt erasure must only be done by a professional that has experience in the field of bankruptcy and execution!
It is important to get to know your execution lawyer in person, for the process of debt erasure – bankruptcy takes about eighteen months and you will have to be in touch with your execution lawyer a couple of times during these months. Even after the critical stage of preparing your application of debt erasure and its submission, the execution lawyer will have to follow the process and make sure that everything is being done according to law. Every two months, you will submit, with your lawyer, a report with a detailed breakdown of your income and expenses.
If you have a bank account foreclosure or salary seizure against you, your lawyer will have to prepare and submit special applications for their removal. More from our experience: Ask your execution lawyer to check whether your driver’s license is limited or not. There have been cases where our clients didn’t even know that their driver’s license has been revoked because of the debts and they kept driving – which is a criminal offense!
We invite you to read more articles on our site and get information which can help you get through this difficult and unpleasant period with minimal damage and in a short time. If you still have any questions – you are invited to write to us via the website or call us and we will be happy to help you.
* The above mentioned in this article is by no means legal advice, every use of this detailed information is at the reader’s responsibility.