Many debtors against whom execution proceedings have been instituted find themselves in a situation in which they can not repay their debts, which leads to the imposition of sanctions by the Execution Office. Limited means. Bankruptcy. And compromise with the creditors.
1 – Restricted means – Executed there is a track called a limited means, this path is intended to charge which is not suitable for the track of consolidation of files, this track allows to require the deployment of debts in a broad manner, for this must meet several conditions. A debtor who is unable to spread the law over these periods.
Two years to NIS 20000.
3 years 20 to 100 thousand NIS.
4 years over NIS 100 thousand.
In order for the debtor to be identified as limited by means, a request must be submitted to the Execution Office, together with the questionnaire and the required documents.
At this stage, the Head of the Execution Office will consider whether to accept this request, if the amount of the monthly repayment is determined in all open cases against the debtor, regardless of the amount of the debt. The restrictions that apply to a debtor are limited by means of the other, an order prohibiting the departure from Israel. Limiting the debtor as a special limited customer. And more. A person who has been declared liable as a limited debtor must comply with the payments made by the head of the Execution Office. Failure to comply with the payments may cause the cancellation of the proceedings.
Advantages of the procedure – this procedure can be applied even if open against the debtor only one portfolio. The payment threshold is low regardless of the debt level. Entitlement to stay of proceedings in open files. The debtor is in a lever position against the creditors to reach a debt settlement.
The disadvantages of the procedure – the restrictions make it difficult for the debtor to conduct business. The amount of debt is only increasing and the payment does not cover the interest rate. The debtor joins the blacklist of banks and avoids him from getting a mortgage or credit. Before entering this process, a review of the process of file consolidation or bankruptcy should be seriously examined.
Consolidation of files – another path facing the debtor is regular file consolidation, an application to the Head of the Execution Office to consolidate all open files against the debtor, in return for payment of a sum not exceeding three percent of the total open debts against him. In this procedure there are a number of restrictions can not be attached to alimony files, court cases, or mortgage. As part of the procedure, the debtor must pay three percent of the debt every month until a decision is reached in his case. If the Execution Office Registrar responds positively to the request for unification of files, the proceedings in all open cases against the debtor will be held.
Advantages – Due to payment of 3 percent of each month within a reasonable and known time, the debtor will be able to complete his debts. All proceedings against the debtor are detained and can not be acted against. Disadvantages – a monthly payment of 3 percent may be high and must be met monthly on a regular basis. An order to stay out of Israel is pending until the end of the unification file. In conclusion, it is recommended to consult an expert lawyer in the field in order to choose the right procedure and to manage it in an optimal manner, which is often rejected.
