Debt Collection

How long does financial rehabilitation take in Israel?

The standard supervised payment period is 3 years. If the court identifies bad faith, unusual complexity, or significant assets requiring distribution, it can extend the period to a maximum of 7 years. Debtors with very low income and no assets may qualify for the expedited Section 163 track, which can conclude more quickly — sometimes within 12-18 months — with no payment obligation.

From the full guide: Financial Rehabilitation in Israel: How Individual Debt Discharge Works Under the 2018 Law


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