Debt Collection

Can an Israeli court order a third party — such as a bank or employer — to pay a debtor's debt directly to a creditor?

Yes. The Execution Office (Lishkat HaHotza'a Lapo'al) can issue an attachment order directing a named third party — including a bank, an employer, or a trade debtor — to pay money it owes to the judgment debtor directly to the creditor instead. This mechanism operates under Sections 52–59 of the Execution Law 5727-1967. Bank accounts, salary payments, and trade receivables can all be redirected via this route without requiring additional court proceedings. The third party is legally bound to comply and faces enforcement action for non-compliance.

Under Sections 52–59 of the Execution Law 5727-1967, once a creditor holds a valid Israeli court judgment, they may file an enforcement application with the Execution Office identifying a named third party (tzad shlishi) who owes money to the debtor. The Execution Office then issues a notice directing that third party — whether a bank, an employer, or a trade creditor owed receivables — to pay the relevant funds directly to the Execution Office for the creditor's account rather than to the judgment debtor. The third party is legally bound to comply. Non-compliance exposes the third party to enforcement action by the Execution Office and may constitute contempt of the Office's order. For a complete overview of how the Israeli Execution Office operates, this third-party payment mechanism is one of the most effective tools available to judgment creditors.

This is a practical tool for creditors whose debtors are uncooperative or difficult to locate. If the judgment debtor is employed, the employer becomes the paying third party. If funds are held in a bank account, the bank is directed to transfer those funds to the Execution Office. Trade creditors — suppliers owed payment for goods or services — can also be ordered to redirect the debtor's receivables to the enforcement creditor. Foreign creditors who hold Israeli judgments have full access to this mechanism on the same basis as Israeli creditors. The creditor must supply the Execution Office with the third party's full name, address, and the approximate amount owed; this information is typically obtained through prior asset disclosure proceedings in which the debtor is required to list their debtors and bank accounts under oath. Salary attachment is capped at one-third of the debtor's net pay under the Wage Protection Law 5718-1958.

⚖ In Practice
  • Governing law: Sections 52–59, Execution Law 5727-1967; Wage Protection Law 5718-1958 (salary cap)
  • Competent authority: Execution Office (Lishkat HaHotza'a Lapo'al)
  • Application fee: approximately NIS 500–800 (2026), depending on the amount being enforced
  • Third-party compliance period: Third party must comply within 10–30 days of receiving the notice or face contempt proceedings
  • Salary attachment cap: Maximum one-third of the debtor's net monthly salary under the Wage Protection Law
  • Practical note: The creditor must identify the third party by name and address — obtain this through prior asset disclosure proceedings in the Execution Office

From the full guide: The Israeli Execution Office: How Judgment Creditors Enforce Payment


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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

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