Which Israeli court should a foreign creditor file a debt claim in?

Israel has a three-tier civil structure and no separate commercial court for ordinary debt. The Magistrates Court is the default forum and handles the large majority of collection claims. The District Court takes claims above the monetary ceiling, together with insolvency and company matters. The small claims track is procedurally different rather than merely cheaper: lawyers are not permitted, the rules of evidence are relaxed, a company generally cannot use it, and a claimant is limited in how many claims it may bring in a year. Court fees run at 2.5% of the claim value in the ordinary tracks.

A foreign creditor faces two extra steps. Pleadings must be in Hebrew or accompanied by certified translations, and the claim is normally filed by an Israeli advocate under an apostilled power of attorney, which removes any need to travel. The defendant will often ask the court to order a foreign claimant to post security for costs, and a court will usually grant it where the claimant holds no assets in Israel, so budget for that at the outset. Where the debt rests on a cheque, a promissory note or a fixed sum under a signed document, the Execution Office route is faster and cheaper than any court.

From the full guide: Suing for Debt in Israel: Which Court, What Process, and How Long It Takes

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