Debt Collection

Can a defendant in Israel set aside a judgment given in their absence?

Yes, and the strength of the application turns almost entirely on whether service was valid. Under Regulations 130 and 131 of the Civil Procedure Regulations 5779-2018, a defendant against whom judgment was entered without a defence or without an appearance may apply to the same court to have it cancelled. Where the claim was never properly served, cancellation follows as a matter of justice and the court has little discretion to refuse. Where service was good but the defendant had a genuine reason for staying away, the court weighs that reason against the apparent merits of the defence and usually attaches a costs condition.

Israeli courts draw a sharp line between the two grounds. Defective service goes to the court’s authority to hear the case at all, so a defendant who shows the statement of claim never reached a valid address is entitled to cancellation even where the defence looks thin. The second track is discretionary. The court asks why the defendant stayed away and what defence they would run, and Israeli practice gives the second question far more weight, on the reasoning that a defendant with a real defence should not lose on a procedural slip. Applications are supported by an affidavit and are heard by the same court that gave the judgment.

Foreign defendants usually meet this after an Israeli creditor opens an Execution Office file and a bank account or property turns out to be frozen. The 30-day clock runs from the day the defendant learned of the judgment rather than the day it was given, which is what makes these applications viable years later, though the delay itself still has to be explained. Filing does not automatically halt enforcement, so a separate request to stay the Execution Office file is normally lodged at the same time. Service abroad has its own rules and is a frequent source of defects worth checking first. See the guide to filing a claim in Israeli court for the underlying procedure.

⚖ In Practice
  • Governing law: Regulations 130 to 131, Civil Procedure Regulations 5779-2018
  • Competent authority: the court that gave the judgment, usually the Magistrates’ Court (Beit Mishpat HaShalom)
  • Deadline: 30 days from the day the applicant became aware of the judgment, extendable by the court for cause
  • Two grounds: cancellation as of right where service was defective; discretionary cancellation where the defendant shows a reason for absence and an arguable defence
  • Usual condition: the court commonly orders the applicant to pay the other side’s costs, often NIS 1,500 to 5,000 (2026), as the price of reopening
  • Enforcement: an Execution Office file keeps running unless a separate stay is granted, so both applications are filed together

From the full guide: Filing a Debt Claim in Israeli Court: Step-by-Step Guide


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