How does a creditor collect a debt from the estate of a deceased debtor in Israel?

The first practical step for a creditor when a debtor dies is to monitor the Registrar of Inheritance Affairs (Rasham HaYerushot) proceedings. When an heir applies for a succession order or probate of a will, a public notice is published in Reshumot (the official gazette), and creditors have the right to object or submit claims before the order is issued. If the estate has an appointed administrator, the creditor should write formally to the administrator asserting the debt and attaching supporting documentation — a written contract, invoices, promissory note, or court judgment. The administrator is legally required to compile a list of estate debts and pay them in order of priority before distributing any assets to heirs. Preferential debts — including funeral expenses, estate administration costs, and certain tax liabilities — are paid first; unsecured commercial debts rank equally unless the creditor holds security over a specific asset.

If the estate has already been distributed before the creditor asserted its claim, the creditor can still pursue each heir individually for the debt, but only up to the value of the assets that heir actually received from the estate — heirs have no personal liability beyond what they inherited. The seven-year limitation period under the Limitation Law 5718-1958 applies to estate claims and runs from the date the debt fell due, not from the date of the debtor's death. A foreign creditor seeking to collect from an Israeli estate should engage an Israeli attorney immediately upon learning of the death to register the claim and, where necessary, apply to have an administrator appointed if none exists — an unrepresented estate can allow assets to dissipate rapidly.

From the full guide: Collecting a Debt from a Deceased Debtor in Israel: A Guide for Foreign Creditors

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