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Cancellation of debts and Bankruptcy

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HOVELLE, TSAITEL & CO. LAW FIRM – is a team of lawyers with years of experience providing legal services for debt cancellation and bankruptcy in the following areas:

  • Cancellation off debts;

  • Bankruptcy;

  • Court Bailiff;

  • Cancellation of foreclosure of salary and bank account;

  • Cancellation of ban on leaving Israel, as well as, renewing the Passport;

  • Bankruptcy of entity in Israel;

Surely you’re not in the right situation to be “jealous”, but they say that even the president of the United States, Donald Trump, was bankrupt several times, and he became president, and we are not!

So don’t despair, and put your cross on yourself! Believe me, not everything is lost!

If you feel that you are not handling with your debts, evaluate the situation soberly and look for a way out, so that everything does not go too far. First of all you should contact a lawyer, who specializes in bankruptcy and debt cancellation.

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Cancellation of debts and Bankruptcy

How to declare bankruptcy in Israel.

Bankruptcy is the legal way to write off debts through court.

Sure, bankruptcy is unpleasant, but the most important thing to remember is that it is temporary!

How to pass the bankruptcy process competently and concisely, we will try to explain in this and in subsequent articles. But first, we must understand that a lawyer specializing in bankruptcy is the key to a successful completion of the process.

In accordance with Israeli law, an individual who is in arrears of at least 17,514 NIS, which has arisen in good faith, unintentionally, without intent, may apply for a decision to collect the debtor’s property in order to declare him bankrupt.

 

How to declare yourself bankrupt?

 

The stages are as follows:

  • A petition for bankruptcy of “Bakasha le psitat regel” is filed with the Property Management Department. During the submission of the documents, it is necessary to pay a fee in the amount of 1,600 shekels (valid for 2019) as a condition of opening a case. In some cases, an exemption from this payment can be obtained.
  • As soon as the documents are submitted to the Property Department, a claim is filed with the District Court (at the plaintiff’s place of residence).
  • The court order is issued to collect all the debtor’s property “tsav kinus” and payment is appointed (in accordance with the debtor’s income). It is important to note that in the place with “Tsav quinus”, the court orders the suspension of all legal procedures for the collection of debts against the debtor.
  • The property is placed under the control of the right bailiff appointed by the court. It is the bailiff’s obligation to conduct a thorough inspection of the origin of the debts and propose a repayment plan.
  • The inventory of the debtor’s property is being carried out, as well as the investigation of whether something was hidden/transcribed to other people.
  • If the process is successful, all property will be sold out and the money received will be distributed proportionally to all creditors.
  • And, of course, at the end of the process, a debt write-off decision is issued and you are released (Saf Efter) from all restrictions by creditors and the court in bankruptcy proceedings.
    You should be aware that not all property can be seized and your lawyer will give you a list of what may remain with you.

Your financial actions and behavior will be monitored by the court. In the event of attempts to conceal property or other unsubstantiated assets, the bankruptcy operation may be cancelled.

Unfortunately, the bankruptcy process itself can take years. But you know that everything is in your hands, right?!

 

Competent legal support and terms of bankruptcy proceedings will help to significantly reduce this time. The lawyer will unravel and tell you about the difficulties you will face and what you should do first.

A lot of people are experiencing financial difficulties in their lives. Some solve such problems very quickly, while others begin to sit down and do nothing about it. Big companies and businesses have gone broke and become dirty in debt because they have dragged on with the bankruptcy process, thus hurting themselves.

In most cases, small debts turned into large debts and all this led to big troubles: restriction of bank accounts, seizure of property, prohibition to leave the country and closure of business, this is a small part of restrictions faced by the debtor.

Listed below advantages and disadvantages of bankruptcy.

 Advantages:

  • The debt is not increased, no interest, penalties or fines are charged.
  • Collectors are prohibited by law from interacting with you.
  • If the procedure is successful, the citizen is forever exempt from paying debts.
  • The ability to start with a clean slate.
  • Impossibility to open new legal proceedings against the debtor.
  • Write off all or most of the debts.

Disadvantages:

  • Long and tedious process that can last 3-4 years.
  • The property will be sold out: mortgage apartment or house, car, equipment, swimming facilities, expensive property.
  • restrictions to leave Israel.
  • Restrictions to use credit cards and cheques.
  • Money flow only under the control of the financial manager.
  • Lack of opportunity to be the owner of the enterprise or to own a part of the business.

We recommend that you consult a qualified lawyer before filing a “bankruptcy case” and clarify all the details. An experienced attorney will find the best solution for you and your family.

OUR RECOMMENDATIONS

Specialists in this area

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Tomer Tsaitel
LAWYER AND NOTARY
Tomer Tsaitel is a founder and partner of the Firm.

Mr. Tsaitel is expert in Real Estate and Bankruptcy Law. He also provides services in field of Israeli Bank system, as well as providing assistance in transferring fund to Israel. Mr. Tsaitel knows from his own experience the internal features of government structures, as well as the subtleties of commercial activity.

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Mickey Hovelle
PERSONAL LAWYER
Mickey Hovelle is a founder and partner of the Firm.

Mr. Hovelle is expert in Civil Law, especially in Administrative Law. He knows from his own experience the internal features of government structures, as well as the subtleties of commercial activity.

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