Execution - Dismissal route until 2020

Good news for those indebted under enforcement procedures!!!



In the past, debt relief could only be obtained through bankruptcy proceedings.

In 2015, a law came into effect allowing for debt relief also within enforcement proceedings (under certain conditions).



In March 2018, the Knesset approved in its second and third readings, and Amendment No. 57 to the Enforcement Law came into effect.

This amendment includes five main topics that expand the options for debtors, ease the conditions for obtaining debt relief, and essentially erase debts:



1. Broad discretion for the Enforcement Registrar, who will be able to examine the eligibility criteria for entering the debt relief track by looking at the debtor's assets and whether they have value or can be seized or liquidated. Essentially, the registrar is authorized to calculate the cost of liquidating the asset (including fees, charges, registration, etc.) and consider whether liquidation would benefit the creditors, meaning that in certain cases debt relief may be granted even to a debtor who owns assets.



2. Easing the condition regarding the debtor’s compliance with the payment order set for them. Now it is sufficient that the debtor has paid at least half of the payments over the three years preceding the application (of course, the debtor will complete the arrears before debt relief is granted). Additionally, the registrar is authorized to grant debt relief in special and exceptional cases even to those who have not complied with the payment arrangement, even under certain conditions.Easier. 3. The eligibility threshold for entering the process, which was limited to debts not exceeding 800,000 NIS, has been significantly increased, and now even those whose debt reaches 2,000,000 NIS can benefit from the process (provided that the principal amount of the debt does not exceed 400,000 NIS). 4. The validity of granting discharge has been extended until September 2019. 5. Enforcement officers have also been authorized to facilitate an agreed-upon debt arrangement between the debtor and creditors, including in cases where the debtor is not entitled to a full discharge. Do you have debts and want to explore discharge arrangements? Contact us today to implement the process. You can review the text of the amendment to the law, as published by the legislator in the statutes: http://fs.knesset.gov.il//20/law/20_lsr_491463.pdf