If an Israeli partnership owes a debt, can the creditor pursue the individual partners?

A general partnership in Israel is not a separate shield in the way a limited company is. The Partnership Ordinance makes every general partner an agent of the firm and jointly and severally liable for obligations incurred while a partner. A creditor who obtains judgment against the partnership can, in practice, reach the partners personally, and a partner who retires can remain liable for debts that arose during their membership unless the creditor agreed otherwise. A registered limited partnership (shutafut mugbelet) lets limited partners cap their liability, but it must still have at least one general partner whose liability is unlimited.

For a foreign creditor, this is an advantage, because a partnership debt is not confined to whatever the firm happens to own. It is worth identifying the individual partners early and, where possible, naming them so that enforcement through the Execution Office can target their salaries, bank accounts, or property. Timing and evidence of who was a partner when the debt arose both matter, so gather the partnership's registration file and contracts. If the partners have left Israel, the debt still stands and can be pursued on their return or through recognition abroad. For the enforcement toolkit generally, see Debt Collection in Israel.

From the full guide: Debt Collection in Israel: A Guide for Foreign Creditors

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