Quick Answer: Under Sections 40–44 of the Execution Law 5727-1967, a judgment creditor can attach money that a third party owes to the debtor — rent from tenants, fees from clients, retention money from a contractor — and require that third party to pay the Execution Office directly instead of the debtor. The third party (called the chayav tzad gimmel, or third-party obligor) is legally protected against any claim by the debtor for non-payment once they comply with the order. The procedure runs through the same Execution Office (Hotzaa LaPoal) file used for bank attachment and wage garnishment.

Bank account searches come back empty. The debtor draws a nominal salary. But you know they own property with paying tenants, or that a client owes them NIS 180,000 on a completed contract. Those money flows are attachable under Israeli law, and the mechanism for doing it — receivables attachment, or ikul chov tzad gimmel — is one of the most underused tools in Israeli debt recovery.

Wage garnishment and bank attachment are specialized variants of the same underlying power: the Execution Office's authority under Section 40 of the Execution Law 5727-1967 to attach any obligation that a third party owes to the debtor. Salary owed by an employer is one such obligation. A balance held by a bank is another. But the same authority reaches rental income, professional fees, construction retention money, insurance reimbursements, and any other identifiable payment stream flowing toward the debtor from a third party.

For foreign creditors pursuing an Israeli debtor who has structured their affairs to minimize visible personal assets, understanding this broader attachment power matters. A debtor with five tenants and a roster of ongoing client contracts may have nothing attachable in a bank search while several hundred thousand shekels a year flows through their business.

1. What Receivables Attachment Is

Receivables attachment is an enforcement order that intercepts a specific debt owed to the judgment debtor by a named third party. The third party — who is not your debtor and not a party to your judgment — receives the order and is legally required to pay you (through the Execution Office) instead of paying the debtor.

The debtor's entitlement to the money is the attached asset. You are not suing the third party; they owe you nothing directly. The order binds them because they hold something that legally belongs to your debtor, and Israeli enforcement law redirects that obligation to satisfy the judgment debt.

Receivables attachment is distinct from:

  • Bank account attachment — which is a form of receivables attachment where the "third party" is a bank and the "receivable" is the deposited balance. The process for bank accounts has its own administrative channel (a centralized order sent to all banks simultaneously); receivables attachment of non-bank debts goes through a targeted single-party order.
  • Wage garnishment — which attaches the debtor's employment salary. Subject to the protected-wage exemptions under Section 50 of the Execution Law, which do not apply to most other receivables.
  • Property attachment — which attaches a tangible asset (real estate, vehicle). Receivables attachment targets an obligation, not a physical thing.

The Execution Law 5727-1967 (Chok HoTzaa LaPoal) is the primary statute. Four sections govern receivables attachment specifically:

  • Section 40 — The general attachment power. Authorizes the Execution Registrar to issue attachment orders covering all assets of the debtor, including debts owed to the debtor by third parties. This is the statutory base for the entire enforcement system, including bank and salary attachment.
  • Section 42 — Covers the attachment of periodic debts: rent, installment payments, recurring fees. An order under Section 42 stays active for each future payment as it falls due, without requiring the creditor to refile for each installment. The order continues until the judgment debt is fully satisfied or the underlying obligation ends.
  • Section 43 — Sets out the third party's obligations once they receive an attachment order. They must not pay the debtor; they must pay the Execution Office instead, within the time specified in the order (typically 14 days from the date each payment falls due).
  • Section 44 — Governs disputes. A third party who claims they owe nothing to the debtor, or owe less than the order specifies, must file a written denial with the Execution Registrar within 7 business days of receiving the order. If they do not deny and do not pay, they become personally liable for the judgment amount.
In Practice — Section 43 Protection for Compliant Third Parties: A tenant who receives a Section 42 attachment order in respect of their landlord's debts sometimes worries that paying the Execution Office — rather than the landlord — will put them in breach of their lease. Section 43 of the Execution Law 5727-1967 resolves this directly: a third-party obligor who pays in compliance with an Execution Office order is fully discharged from their obligation to the debtor for any amounts so paid. The landlord-debtor cannot sue the tenant for non-payment of rent that the tenant remitted to the Execution Office under a valid order. The tenant's obligation is extinguished as if paid to the landlord directly. The only exception is an order that is successfully challenged and set aside — in which case the Execution Office refunds the third party if the challenge is upheld.

3. What Types of Receivables Can Be Attached

Almost any identifiable monetary obligation owed to the debtor by a named third party can be attached. Common categories in practice:

Rental income

If the debtor owns property and has tenants, the rent obligation is attachable under Section 42. The Execution Office serves the order on the tenant directly. For commercial leases where rent runs to hundreds of thousands of shekels per year, this is often the single most productive enforcement measure. The order covers future rent installments as they fall due; the creditor does not need to refile each month. Both residential and commercial leases are covered.

Professional and service fees

If the debtor is a self-employed professional — consultant, contractor, architect, accountant — and has outstanding invoices or ongoing retainer payments owed by clients, those obligations can be attached. The creditor must identify the specific client and the approximate amount owed. The Execution Office serves the client with an order to pay the Execution Office instead of the debtor.

Construction retention money

In Israeli construction contracts, the main contractor typically holds back 5–10% of each subcontractor payment as retention until final completion. If your debtor is a subcontractor, the general contractor holds retention money that is owed to the debtor. That retention obligation is attachable once the milestone that triggers release has been met.

Insurance reimbursements

If the debtor has filed an insurance claim and is awaiting payment from an insurer, the insurer's obligation to pay is a receivable. The Execution Office can serve the insurer with an attachment order requiring payment to the Execution Office rather than the debtor.

Sale proceeds and escrow funds

If the debtor has sold an asset — real estate, a vehicle, a business — and the buyer owes outstanding payment or an escrow agent holds completion funds, those obligations can be attached. This is particularly useful when the debtor has sold their property and the proceeds are held by a conveyancing attorney.

Partnership and joint-venture distributions

If the debtor holds an interest in a partnership (shutafut) or joint venture and is entitled to distributions, the partnership's obligation to make those distributions is a receivable. The attachment is served on the managing partner or the partnership entity.

In Practice — Section 42 Attachment of Rental Income from Four Tenants: A British investor held an Israeli Magistrate Court judgment for NIS 210,000 against an Israeli property developer who claimed to have no personal bank assets. Investigation through the Israeli Land Registry (Tabu) revealed that the debtor owned a four-unit commercial property in Rishon LeZion, with tenants paying a combined monthly rent of NIS 22,000. The creditor's attorney filed a Section 42 attachment order at the Execution Office, which served all four tenants simultaneously. Each tenant received a payment redirection order: rather than pay rent to the debtor's bank account, they were to transfer monthly rent to the Execution Office account, quoting the enforcement file number. All four tenants complied without challenge. Within 10 months, the Execution Office had collected NIS 220,000 — the full NIS 210,000 judgment plus accrued CPI linkage and enforcement costs — from the rental stream alone. The debtor's bank account showed NIS 3,200 throughout.

4. Step-by-Step: How to Apply for Receivables Attachment

Step 1 — Identify the receivable and the third party

Unlike bank attachment — where the Execution Office searches all banks automatically — receivables attachment requires you to name the specific third party and describe the obligation. This means doing some investigation first. Useful sources:

  • Israeli Land Registry (Tabu / Misrad HaMishpat) to find property the debtor owns and identify any tenants
  • Companies Registrar to find business entities in which the debtor is a director or shareholder (which may be your debtor's clients or joint venture partners)
  • Commercial credit reports from BDI Code or Dun & Bradstreet Israel listing the debtor's known business relationships
  • The debtor's own financial disclosure, if you have previously compelled one at the Execution Office under the financial examination procedure (bedika artzi)

Step 2 — Open an Execution file (if not already open)

File opening fees are NIS 297–988 depending on the judgment amount. If you already have an open Execution file — for example, because you previously filed a bank attachment request — you can add the receivables attachment to the same file without paying a new opening fee.

Step 3 — Submit the receivables attachment application

Submit a bakashot ikul chov (debt attachment application) to the Execution Registrar. The application must specify:

  • The name and address of the third party (the obligor)
  • The nature of the debt (rent under a specified lease agreement, fees under a named contract, etc.)
  • The amount or estimated amount of the obligation
  • Whether the debt is a lump sum or recurring (for recurring payments, cite Section 42)

Application fee: NIS 87 per order, same as a bank attachment request. For multiple third parties, each requires a separate NIS 87 order.

Step 4 — The Execution Office serves the third party

The Execution Registrar processes the application — typically within 3–5 business days — and issues the attachment order. The order is served on the third party by registered mail or bailiff. Service by registered mail is standard; for an uncooperative or evasive third party, the creditor can request bailiff service.

Step 5 — Third party responds and payments redirect

From the date of service, the third party must comply with the order: each payment that falls due goes to the Execution Office instead of the debtor. For a recurring obligation like rent, the third party continues paying the Execution Office each month until the judgment debt is fully satisfied or the Execution Registrar lifts the order. For a lump-sum obligation, payment is due within 14 days of the date it falls due under the underlying contract.

In Practice — Section 42 Order for Ongoing Client Fees: A German technology company obtained an Israeli District Court judgment for NIS 340,000 against an Israeli systems integrator. Bank attachment returned NIS 4,200 in a savings account. The debtor's salary was NIS 8,000 per month from their own company, partially protected under the minimum-wage exemption. Investigation through the Companies Registrar revealed that the debtor's company had a recurring service contract with a listed Israeli corporation worth NIS 35,000 per month. The German company's attorney filed a Section 42 attachment order naming the listed corporation as the third-party obligor. The listed corporation complied immediately — large organizations typically do, to avoid personal liability under Section 44 — and diverted NIS 35,000 per month to the Execution Office. Within 11 months, the judgment was satisfied in full. The listed corporation obtained documentary confirmation from the Execution Office that the order was lifted and resumed paying the debtor's company directly.

5. The Third Party's Obligations Under Section 43

A third party who receives an Execution Office attachment order under Section 43 of the Execution Law 5727-1967 has three options:

Option A — Comply. Pay each installment as it falls due to the Execution Office account specified in the order. Obtain and retain the Execution Office's receipt. Their obligation to the debtor is discharged for amounts so paid. This is the path taken by the vast majority of third parties, particularly companies with compliance departments.

Option B — Deny. File a written denial with the Execution Registrar within 7 business days, disputing that any debt is owed or that the amount specified is correct. This triggers a hearing (see Section 6 below). The third party continues to owe nothing to anyone — neither the debtor nor the creditor — until the Registrar rules on the dispute.

Option C — Ignore. This is not a legal option, but it happens. A third party who receives the order, takes no action, does not pay the Execution Office, and does not file a denial becomes personally liable for the creditor's full judgment debt under Section 44. This personal liability is separate from whatever the third party owes the debtor and is enforced through a separate Execution file against the third party directly.

In Practice — Section 44 Personal Liability for a Non-Responding Third Party: A creditor with an Israeli judgment for NIS 95,000 filed a receivables attachment order against the debtor's commercial tenant, who owed NIS 12,000 per month in rent. The tenant received the order, consulted with the debtor (who told them to ignore it), and did not pay the Execution Office and did not file a denial. Seven months later, the Execution Registrar issued a ruling under Section 44 finding the tenant personally liable for NIS 84,000 — seven months of rent that should have been redirected. A new Execution file was opened against the tenant. The tenant paid within 30 days to avoid further enforcement action against themselves. The original debtor still owed the remaining NIS 11,000. The tenant's recourse was a separate civil claim against the debtor for reimbursement of the NIS 84,000 they were forced to pay twice.
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6. When the Third Party Disputes the Debt

Section 44 of the Execution Law creates a mandatory challenge window. A third party who believes they owe nothing to the debtor — or owe less than the attachment order specifies — must file a formal written denial (hakashah) with the Execution Registrar within 7 business days of service. A denial filed late may be rejected.

The denial must state the grounds: the debt does not exist, has already been paid, is subject to setoff, or the amount is overstated. The Registrar schedules a hearing, typically within 14–21 days of receiving the denial. At the hearing, both the creditor and the third party can present documents. The debtor may also participate if they choose.

If the Registrar finds in the creditor's favor — that the debt exists and the third party's denial was unfounded — the third party must pay as if no denial had been filed. The Registrar may also award costs against a third party who filed a denial without genuine grounds.

If the Registrar finds in the third party's favor — the debt genuinely does not exist or has been overstated — the order is lifted or modified accordingly. The creditor may then appeal to the Magistrate Court under Section 80 of the Execution Law if they believe the ruling is wrong.

Common legitimate grounds for denial:

  • The lease or contract has already expired and no further rent or fees are due
  • The third party has already paid the debtor in full before receiving the attachment order
  • The third party has a valid setoff: they are owed money by the debtor and the mutual debts cancel out
  • The underlying contract contains a prohibition on assignment or attachment of the debtor's rights (these clauses sometimes appear in franchise agreements and specialized service contracts; their enforceability in the enforcement context is debated but they are sometimes raised as a defense)

7. Priority Among Competing Creditors

An Israeli debtor may have more than one judgment creditor, each attempting to attach the same receivable. Priority follows the chronological order of attachment: the creditor whose order reaches the Execution Office first takes priority over later filers against the same third party and the same obligation.

In practice, once the Execution Office serves an attachment order on a third party, subsequent creditors who attach the same receivable receive any surplus remaining after the first-ranked creditor is satisfied. This makes prompt filing after obtaining judgment worthwhile.

In Practice — Insolvency Challenge to Prior Attachments (Section 219): Under Section 219 of the Insolvency and Economic Rehabilitation Law 5778-2018 (Chok HaShvitat Tashlumim Veha'Shikum HaKalcali), an insolvency administrator can challenge attachments and other enforcement actions taken within three months before the date an insolvency petition is filed against the debtor. A creditor who attached the debtor's rental income on July 1 and the debtor filed for insolvency on September 15 — less than three months later — may find that attachment voided by the administrator as a preferential transaction. The practical implication: act on a judgment quickly to maximize the gap between your attachment and any subsequent insolvency filing. Attachments older than three months are outside the preference window.

8. Foreign Creditors: Using Receivables Attachment from Abroad

Foreign creditors can use receivables attachment after the same preliminary step that applies to all Execution Office enforcement: recognition of the foreign judgment by an Israeli District Court under the Foreign Judgments Enforcement Law 5718-1958. Once recognition is granted, the foreign creditor has access to every enforcement tool available to a domestic Israeli creditor, including receivables attachment.

In practice, a foreign creditor pursuing an Israeli debtor who earns their income from Israeli clients or tenants should consider receivables attachment early in the enforcement strategy, not as a last resort. The bank account search is faster to file but often returns little; receivables attachment requires more investigation upfront but targets the money before it ever reaches the debtor's bank.

Foreign creditors cannot represent themselves at the Execution Office. An Israeli-licensed attorney (orech din mishpat) must file and manage the enforcement file on the creditor's behalf.

One practical step before filing suit

If your contracts with Israeli counterparties are still being negotiated, include a clause specifying Israeli jurisdiction. Any resulting judgment issues directly from an Israeli court and goes straight to the Execution Office without the recognition procedure. For recurring commercial relationships, this cuts weeks or months off the enforcement timeline if payment disputes arise.

In Practice — Foreign Creditor Strategy: Recognition Plus Receivables Attachment: A Canadian consulting firm obtained a Toronto Superior Court judgment for CAD 145,000 against an Israeli technology company whose Israeli director had provided a personal guarantee. The director had no visible personal assets: no Israeli real estate, no Israeli bank account balance in excess of NIS 6,000. Land Registry searches revealed that the director rented out a furnished apartment in Tel Aviv through a long-term lease at NIS 9,500 per month. After obtaining Israeli recognition of the Toronto judgment (53 days, uncontested), the firm's Israeli attorney filed a Section 42 attachment order against the tenant. The tenant, an Israeli individual, complied and redirected rent to the Execution Office. Simultaneously, the attorney filed a bank attachment — which produced an additional NIS 18,400 when the director's account received a wire transfer from a foreign client six weeks after filing. Total recovery through receivables and bank attachment: NIS 297,000 (approximately CAD 110,000) over 14 months, without any Israeli litigation on the merits.