Debt Collection

What happens if the debtor declares insolvency during enforcement?

Once formal insolvency proceedings are opened (liquidation or debt restructuring under the 2018 Insolvency Law), individual enforcement actions through the Execution Office are typically stayed. The creditor must file a proof of claim in the insolvency proceedings and participate in the distribution to creditors. See our guide on Bankruptcy & Insolvency of Israeli Debtors .

From the full guide: The Israeli Execution Office (Hotzaa LaPoal): How Enforcement Works


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