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Does appealing a court judgment stop the creditor from enforcing it in Israel?

No. Under the Civil Procedure Regulations 5779-2018, filing an appeal does not by itself stay execution, so the creditor can open an Execution Office file and enforce the judgment while the appeal is pending. The debtor must ask for a stay of execution (ikuv bitzua), first from the court that gave the judgment and then, if refused, from the appeal court. For money judgments, stays are the exception and are usually conditioned on depositing the judgment amount or providing a bank guarantee.

Israeli courts treat a judgment as enforceable from the day it is given, and the losing party's right to appeal does not change that. On a stay application, the court weighs two questions together: how strong the appeal looks, and whether refusing a stay would make a successful appeal pointless. A money judgment rarely meets the second test, because a creditor who is paid can normally be ordered to repay with linkage and interest. The picture changes where the creditor might be unable to repay, for example because it has no assets in Israel. Orders to vacate a home or sell an asset are stayed more readily, since the harm is harder to reverse.

Foreign creditors should expect this argument, since a creditor abroad with no Israeli assets is the typical case for a stay, or for an order keeping collected money at the Execution Office until the appeal ends. Debtors abroad face the opposite problem: an Israeli judgment can be enforced against their bank accounts and property in Israel while their appeal is prepared. An appeal as of right from a Magistrates' Court or District Court judgment must generally be filed within 60 days. Security given as a condition for a stay is released or paid out according to the result of the appeal. Our guide to the Israeli Execution Office explains what enforcement looks like once a file is opened.

⚖ In Practice
  • Governing law: Civil Procedure Regulations 5779-2018 (appeals and stay of execution); Execution Law 5727-1967
  • Competent authority: the trial court and the appeal court for the stay; the Execution Office of the Israel Enforcement and Collection Authority (Rashut HaAchifa VeHaGvia) for enforcement
  • Fees/amounts: a stay of a money judgment is commonly conditioned on security equal to the full judgment, for example NIS 250,000 in cash or a bank guarantee on a NIS 250,000 judgment
  • Timeline: an appeal as of right must generally be filed within 60 days of the judgment; urgent stay applications are often decided within days
  • Repayment: a debtor who pays and then wins the appeal can recover the money with linkage and interest

From the full guide: Israeli Execution Office (Hotzaa LaPoal): Enforcement Guide

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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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