The discharge — “hefter” in Hebrew — is the goal of the whole process: it erases the remaining debts that were included, and releases you from the chase. Here is how it works.
What a discharge does
A discharge wipes the balance of the debts included in the insolvency process, ending the pursuit by those creditors. It is the legal fresh start the law was built to deliver — not a failure, but a recognised mechanism for honest debtors to return to normal life.
Which debts are wiped
Most ordinary debts are discharged: bank loans, overdrafts, credit-card debt, debts to suppliers, and many debts to authorities. Once discharged, you no longer owe the remaining balance on them.
Which debts are NOT wiped
Some debts are non-dischargeable by law — notably child support (mezonot), fines and certain penalties, and debts created by fraud or theft. These survive the process, so it is important to identify them early and plan accordingly.
How you reach a discharge
You reach a discharge by entering the process, complying with the payment plan set according to your ability, and acting in good faith throughout — full disclosure, no hidden assets, no last-minute transfers. After the compliance period, the court grants the discharge.
Frequently asked questions
Does a discharge wipe child-support debt?
No. Child support (mezonot) is non-dischargeable, along with fines and debts created by fraud. Most ordinary debts are wiped.
Is a discharge permanent?
Yes, once granted it releases you from the discharged debts. In rare cases of fraud or bad faith a discharge can be revoked, which is why honest conduct matters.
Official sources
- Commissioner of Insolvency and Economic Rehabilitation — official site (Ministry of Justice)
- “Mamo-Net” — online applications to the Commissioner (Ministry of Justice)
- Kol-Zchut — Insolvency and Economic Rehabilitation (Bankruptcy)
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