Quick Answer: Foreign creditors can sue Israeli companies and individuals directly in Israeli courts without any residency or citizenship requirement. Most commercial debt claims go to the Magistrate Court (Beit Mishpat HaShalom) for amounts up to NIS 2,500,000, or the District Court (Beit Mishpat Mechozi) for larger sums. For liquidated debts — invoices, loans, bills of exchange — the summary judgment procedure under Regulation 202 of the Civil Procedure Regulations 5744-1984 can produce a binding judgment in 2 to 4 months without a full trial. A contested case in the Magistrate Court typically takes 12 to 30 months. Once you hold a judgment, the Execution Office (Hotzaa LaPoal) enforces it against bank accounts, wages, and real property.

An Israeli company stops paying invoices. An individual you lent money to stops responding. Your professional services went unpaid. Whatever the background, the question is the same: can you pursue this in an Israeli court, and what does the process actually look like?

The answer is yes — Israeli courts are accessible to foreign plaintiffs — and the practical path depends heavily on two things: the amount you are owed and whether the debtor is likely to contest the claim. For uncontested or clearly evidenced debts, the Israeli system offers a summary judgment track that is considerably faster than a full trial. For larger or disputed claims, you need to plan for a multi-stage litigation timeline. This guide covers both scenarios in full.

1. Two Ways to Recover Money in Israel

Israeli law gives creditors two distinct routes for recovering money:

Track 1 — You already hold a judgment. If you have an existing Israeli court judgment, a recognized foreign court judgment, or a confirmed arbitral award, skip straight to the Execution Office (Hotzaa LaPoal). You do not need to litigate again. See Section 8 of this guide for the enforcement mechanics, and our separate guide on enforcing a foreign court judgment if your judgment came from outside Israel.

Track 2 — You have a claim but no judgment yet. This guide covers Track 2: filing a claim in Israeli court, obtaining a judgment, and then moving to enforcement. The litigation stage is mandatory if your claim is disputed. It can often be bypassed or shortened by the summary judgment procedure even when the defendant appears and responds — as long as the defendant cannot show a genuine defense worthy of a full trial.

For creditors holding a debt document that qualifies as a "known debtor" instrument under Section 81A of the Execution Law 5727-1967 — a signed check, promissory note (shtar chov), or acknowledged debt agreement — there is also a third option: opening an enforcement file directly at the Execution Office without any court judgment. This expedited route is covered in our guide on collecting debt in Israel as a foreign creditor.

2. Which Court Has Jurisdiction

Israeli civil courts are organized in three tiers for debt claims, and getting the tier wrong results in the case being transferred or dismissed at your expense.

Court Claim Amount Who Can File
Small Claims Court
Beit Mishpat LaTevinot Ktanot		 Up to NIS 38,000 Individuals only (not companies); self-representation permitted
Magistrate Court
Beit Mishpat HaShalom		 Up to NIS 2,500,000 Individuals and companies; attorney representation generally required
District Court
Beit Mishpat Mechozi		 Above NIS 2,500,000 Individuals and companies; attorney representation required

The NIS 2,500,000 Magistrate Court ceiling has been in place since 2014 and covers the vast majority of commercial debt claims. For a foreign company owed USD 300,000 (approximately NIS 1,100,000 at current Bank of Israel rates), the Magistrate Court is the right venue. For a claim of USD 1,000,000 or more, the District Court has jurisdiction.

Geographic jurisdiction follows the defendant's registered address or the place of performance of the contract. An Israeli company registered in Tel Aviv is sued in the Tel Aviv Magistrate Court. A Haifa-based individual is sued at the Haifa Magistrate Court. If the contract includes a jurisdiction clause specifying a particular city, that city's court governs regardless of where the parties are actually located.

Foreign plaintiffs with no Israeli presence can file in any Israeli court that has subject-matter and territorial jurisdiction. The court does not require you to have an Israeli bank account, address, or representative other than a licensed Israeli attorney.

In Practice — Forum Selection Clauses in International Contracts: Many Israeli companies insist on arbitration clauses or clauses selecting courts in their own country when negotiating contracts with foreign suppliers. If your contract has an exclusive Israeli court selection clause, filing in the named Israeli court is the correct path and simplifies the service and jurisdiction analysis considerably. If your contract is silent on forum — or selects a foreign court — and the defendant is an Israeli company, Israeli courts will still accept jurisdiction for claims arising out of a contract to be performed in Israel or where the defendant has its main place of business here, under Section 5 of the Courts Law (Consolidated Version) 5744-1984. A foreign-court selection clause does not prevent the Israeli courts from exercising jurisdiction; it may, however, provide the Israeli defendant with grounds to challenge jurisdiction at the outset of the proceedings — adding cost and delay before the merits are ever reached. For contracts with Israeli counterparties, specifying Israeli court jurisdiction (and ideally a specific city) is the cleanest approach.

3. Filing the Claim: Documents and Court Fees

Israeli civil proceedings begin with a ktatav tviah (statement of claim) filed at the appropriate court branch. Since 2019, electronic filing through the Ministry of Justice's "Nevo" e-courts portal has been mandatory for most claim types in the Magistrate and District Courts.

Required documents

  • Statement of claim in Hebrew, drafted by your Israeli attorney, setting out the parties, the facts, and the relief sought (judgment for the debt amount plus interest)
  • All contracts, purchase orders, or service agreements on which the claim is based, attached as exhibits
  • Unpaid invoices with issue dates, due dates, and amounts outstanding
  • Correspondence (emails, letters) showing demand, non-payment, or dispute
  • If the claim is based on a foreign-language document: a certified Hebrew translation is required for documents that the court must read to decide the claim
  • A Companies Registrar extract (tokhen rishumit) showing the defendant's registered address, if the defendant is an Israeli company

Court filing fees (2026, Magistrate Court)

Claim Amount Court Filing Fee (approx.)
Up to NIS 75,000 NIS 494
NIS 75,001 to NIS 250,000 NIS 1,236
NIS 250,001 to NIS 1,000,000 NIS 2,479
NIS 1,000,001 to NIS 2,500,000 NIS 4,959

Attorney fees for debt litigation in Israel: NIS 8,000 to NIS 20,000 for a straightforward summary judgment application on a clear invoice debt; NIS 30,000 to NIS 120,000 for a fully contested Magistrate Court trial. The losing party is typically ordered to pay a portion of the winner's attorney fees, though the court-awarded amount rarely covers the full actual cost.

Interest: Israeli courts award interest on the unpaid principal from the date the debt became due. The statutory interest rate under the Adjudication of Interest and Indexation Law 5721-1961 is currently linked to the Bank of Israel rate plus an adjustment; for 2026 it stands at approximately 5.4% per year. If the contract specifies a higher rate, courts apply the contractual rate up to the legal maximum. CPI linkage applies automatically on top of interest for debts denominated in NIS.

4. Serving the Defendant

Service of process is the formal delivery of the statement of claim and summons to the defendant. The case cannot proceed until valid service is complete.

Serving an Israeli company

Service on an Israeli company (chevra israelit) is made at the company's registered address as it appears in the Companies Registrar (Rasham HaChevrot) records. Service is by registered mail or personal service by a court enforcement officer (kohen beit mishpat). Most Israeli companies receive service by registered mail at their registered office address within 7 to 14 days of dispatch. If the company has no active office at its registered address — a common situation with dormant or post-insolvency companies — the court may authorize alternative service.

Serving an Israeli individual

Service on an individual is made at their home address. If the individual's address is unknown, the plaintiff can apply to the Population and Immigration Authority (Misrad HaPnim) for the registered address through a court order, or serve by publication in an Israeli newspaper under Regulation 485 of the Civil Procedure Regulations 5744-1984.

Serving a foreign defendant (with Israeli assets) from Israel

If the defendant is outside Israel but the claim relates to Israeli property or a contract performed in Israel, the court can authorize service abroad under Regulation 482 of the Civil Procedure Regulations, including service through the Hague Service Convention or diplomatic channels. The defendant then has 60 days to respond from the date of service abroad. This is slower but entirely valid.

In Practice — Service on an Israeli Company That Has Moved Offices: A German software supplier filed a NIS 320,000 claim against an Israeli distributor. The Companies Registrar showed the company's registered address as a central Tel Aviv street. The court enforcement officer attempted service and found the premises vacant — the Israeli company had relocated two years earlier without updating the registrar. The Israeli attorney filed a motion at the Tel Aviv Magistrate Court requesting alternative service. The court granted permission to: (1) post the summons on the door of the old registered address; (2) send by registered mail to the last known actual address (obtained from the company's LinkedIn page and invoices); and (3) send by email to the address used in contract correspondence. The court found these three combined methods constituted effective service under Regulation 488(b) of the Civil Procedure Regulations 5744-1984. The 30-day response period ran from the date the court authorized this alternative service. The defendant still failed to respond, enabling a default judgment.

5. Summary Judgment: The Fast Lane for Liquidated Claims

For creditors with a clear, documented, and liquid claim — unpaid invoices, a loan that matured, goods delivered with an accepted delivery receipt — the most important procedural tool in Israeli litigation is the summary judgment application under Regulation 202 of the Civil Procedure Regulations 5744-1984.

A summary judgment application is filed together with, or shortly after, the statement of claim. It states: the defendant has no real defense to this claim, the debt is undisputed and documented, and judgment should be entered immediately without a full trial. The application is supported by an affidavit from the plaintiff (or the plaintiff's Israeli representative) setting out the facts and attaching all supporting documents.

Once filed, the defendant has 30 days to file an affidavit in response showing "cause" — a genuine, arguable defense that would justify allowing the case to proceed to trial. The bar is deliberately low: the defendant does not need to prove their case at this stage, only to show there is a real dispute of fact or law. If the defendant files nothing, or files a response that amounts to bare denial without any supporting material, the court grants judgment summarily.

What the court looks for in a summary judgment hearing:

  • Is the amount claimed clearly documented — invoices, agreed prices, delivery confirmations?
  • Has the debt been acknowledged by the defendant, even partially?
  • Has the defendant paid part of the invoiced amount (which tends to confirm the underlying transaction)?
  • Is the defendant's defense substantive — a real counterclaim, a genuine dispute about delivery, a fraud allegation with supporting evidence — or is it procedural delay?
In Practice — Summary Judgment on Unpaid Invoices, Regulation 202 Civil Procedure Regulations 5744-1984: A US software company supplied custom development services to an Israeli startup worth USD 185,000 under a Master Services Agreement. The startup paid the first two invoices (USD 65,000 total) then stopped responding. The company's Israeli attorney filed a NIS 455,000 claim (at the Bank of Israel mid-rate) at the Tel Aviv Magistrate Court (filing fee: NIS 2,479) and simultaneously filed a Regulation 202 summary judgment application. The affidavit attached: the signed MSA, all four unpaid invoices with delivery dates, email confirmations from the startup's CEO acknowledging receipt of deliverables and promising payment, and the startup's own bank statement excerpt (obtained through earlier correspondence) showing the company had funds. The startup filed a 12-page response claiming the deliverables were defective — but the response contained no technical assessment, no expert opinion, no correspondence complaining about quality, and no evidence of any complaint made before the payment stopped. The Magistrate Court judge held a single 45-minute summary judgment hearing and granted judgment in full within 6 weeks of the application filing, noting that the response amounted to "bare denial without evidentiary foundation." Total elapsed time from filing the statement of claim to judgment: 11 weeks. Attorney fees on the summary judgment application: NIS 18,000. The court awarded NIS 8,000 in court-ordered attorney fees against the startup.
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6. Default Judgment When the Defendant Ignores the Proceedings

If the defendant is served but files no statement of defense within 30 days, the plaintiff can apply for a default judgment (psak din be-heved) under Regulation 97 of the Civil Procedure Regulations 5744-1984. No hearing is required for a simple monetary claim — the court can enter judgment on the papers alone.

Requirements to obtain a default judgment:

  • Proof of valid service on the defendant (a signed registered mail receipt, a court enforcement officer's service report, or an affidavit of alternative service)
  • The 30-day response period has fully elapsed
  • The claim is for a liquidated sum — a specific amount of money rather than damages to be assessed by the court
  • An affidavit from the plaintiff confirming the debt is outstanding and has not been paid

Processing time for a default judgment: 2 to 5 weeks from the application filing date, depending on the court's workload. The judgment includes the principal amount, interest from the due date at the statutory rate, and court fees.

A default judgment can be set aside by the defendant within 30 days under Regulation 201, if the defendant shows a valid reason for failing to respond (illness, being abroad without notice, improper service) and a viable defense to the underlying claim. If the defendant was genuinely absent or improperly served, the default will usually be set aside, restarting the litigation. If the defendant simply ignored the proceedings, courts are less sympathetic — particularly when the defendant is a company that should have had someone monitoring its registered address.

In Practice — Default Judgment Against an Israeli Company That Went Silent: A UK logistics provider was owed GBP 42,000 (approximately NIS 202,000 at the Bank of Israel mid-rate) by an Israeli freight broker for container services. The Israeli broker stopped answering calls and emails three months after receiving the services. The UK company's Israeli attorney filed a NIS 202,000 claim at the Tel Aviv Magistrate Court (filing fee NIS 1,236). The statement of claim was served by registered mail to the Companies Registrar address. Delivery confirmation was received 8 days after dispatch. The 30-day response period ran out with no statement of defense filed. On day 31, the attorney filed a default judgment application attaching: the registered mail delivery confirmation, the signed service affidavit, the unpaid invoices, and a two-paragraph plaintiff affidavit confirming the debt was outstanding. The Tel Aviv Magistrate Court issued the default judgment 3 weeks later: NIS 202,000 plus interest at 5.4% per year from the invoice due dates, plus NIS 1,236 in court fees. Total elapsed time from claim filing to judgment: 10 weeks. The UK company then filed the judgment at the Tel Aviv Execution Office (fee NIS 988) and bank account attachment notices went out the following day.

7. Full Trial: What to Expect When the Defendant Fights Back

When a defendant files a genuine defense and the summary judgment application is refused, the case proceeds to full litigation. Israeli Magistrate Court proceedings typically involve three phases after the pleadings close:

Pre-trial procedure

Both parties exchange all documents relevant to the claim and defense — a process called giluy mesamchim (disclosure) under Regulation 112 of the Civil Procedure Regulations. Disclosure in Israeli commercial litigation is more limited than US-style discovery: parties exchange documents they intend to rely on, plus documents they are required to disclose that are damaging to their own position. There are no depositions. Interrogatories (written questions) are permitted under Regulation 122 but used sparingly. The pre-trial stage takes 6 to 12 months in a typical commercial case.

Trial

Israeli civil trials are conducted on written witness statements (tatzharot asher) submitted in advance, followed by cross-examination of witnesses at a live hearing. Each side's witnesses submit their full testimony in writing. The trial itself is mainly cross-examination and legal argument. For a standard commercial debt dispute with two to four witnesses per side, the trial typically runs 1 to 3 full court days, often split over several months as court time is allocated. Total timeline from filing to judgment in a contested Magistrate Court case: 18 to 36 months.

Interim injunctions during litigation

While the case is pending, a creditor who can show a risk that the defendant will dissipate assets before judgment can apply for an interim asset-preservation order (tzav arayut) under Regulation 362 of the Civil Procedure Regulations 5744-1984. The court can freeze the defendant's bank accounts up to the claimed amount and register a Tabu caveat preventing sale of real property. Interim injunctions are granted ex parte (without the defendant being notified) when there is an immediate risk of asset removal, then the defendant is heard on a motion to discharge within 10 days. Obtaining an interim injunction at the outset of litigation is often what drives defendants to settle.

8. After Judgment: Enforcement Through the Execution Office

Winning a judgment in the Magistrate or District Court produces a piece of paper that says the defendant owes you money. To actually collect, you open an enforcement file at the Execution Office (Hotzaa LaPoal) branch in the district where the defendant holds assets.

Execution Office filing fee: NIS 988 for claims above NIS 75,000. The file gives you access to the full enforcement toolkit:

  • Bank account attachment (Section 40, Execution Law 5727-1967): A single notice to the Execution Office triggers simultaneous attachment at every Israeli bank. Banks must report and freeze matching accounts within 14 days and transfer funds within a further 21 days. This is usually the first measure filed.
  • Wage garnishment (Section 48, Execution Law): Monthly salary deductions from the defendant's employer. The first NIS 5,880 of net monthly salary is protected; one third to one half of the excess is attachable depending on income level.
  • Real property lien (Tabu registration): Blocks sale or mortgage of any real estate registered to the defendant, typically within 3 to 5 weeks of filing the request.
  • Stay of Exit Order (Section 11B, Execution Law): Prevents the defendant from leaving Israel at any border crossing. One of the most effective settlement tools for defendants who travel.
  • Assets examination (Section 66, Execution Law): Summons the defendant to sworn testimony about all assets. Failure to appear can result in temporary detention under Section 70.
In Practice — Combined Enforcement Strategy After Magistrate Court Judgment: A Canadian engineering firm won a Magistrate Court judgment of NIS 580,000 against an Israeli civil engineering company for unpaid project management fees. The Israeli company had delayed the trial for 22 months through document disclosure disputes and expert witness applications. Judgment was eventually entered after a two-day trial. The firm's Israeli attorney immediately filed at the Tel Aviv Execution Office (NIS 988) and on day one requested: (1) bank account attachment against all Israeli banks under Section 40 — Discount Bank reported NIS 74,000 in the company's operating account, frozen within 14 days; (2) a Stay of Exit Order under Section 11B against the sole director, a frequently traveling executive — served at Ben Gurion Airport within 5 days; (3) wage garnishment under Section 48 against the director personally (the judgment also covered personal liability on a signed personal guarantee). The director's monthly net salary attachment calculation: NIS 9,000 net salary; NIS 5,880 protected; NIS 3,120 excess; one third = NIS 1,040 per month. Two weeks after the Stay of Exit Order was served, the company's lawyer contacted the firm's attorney proposing a full settlement. The NIS 580,000 plus NIS 35,000 in accrued interest and fees was paid in three installments over 60 days. The Execution Office file was closed on completion. Total time from the moment the Magistrate Court judgment was issued to final collection: 74 days.