Debt Collection
Can I claim interest and legal costs on top of the debt I am owed?
Yes, on both counts. Israeli courts award statutory interest linked to the Israeli CPI from the date the debt fell due until payment. If your contract specifies a higher contractual interest rate, the court may apply that instead, up to the limits permitted by the Contracts Law. As for legal costs, Israeli courts regularly award costs to the successful party, though the amounts awarded rarely cover the full actual legal fees incurred. The Execution Office proceedings also carry their own fee structure, which is charged to the debtor once enforcement begins.
From the full guide: Collecting Debts in Israel as a Foreign Creditor
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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy
Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy