If you cannot repay your debts, you are not alone — and you are not without options. Israeli law provides an orderly process that freezes your creditors and attachments, sets a monthly payment according to your real ability, and ends with a discharge that wipes the remaining debt so you can start over.
How the process works
An opening order freezes creditors and attachments from the very start. You pay according to your ability — not the size of the debt — and honest, transparent conduct is the key condition for receiving the discharge at the end.
Most debts can be wiped — loans, bank debts, debts to authorities and suppliers. Some debts are not dischargeable, such as child support, fines and debts created by fraud.
The legal framework
Proceedings run under the Insolvency and Economic Rehabilitation Law, 5778–2018 (in force since 15 September 2019), with smaller debts handled by the Enforcement and Collection Authority and larger ones by the District Court together with the Commissioner of Insolvency at the Ministry of Justice.
FAQ
Will I lose my home or car?
Not necessarily. The law provides protections, especially for the family home, and the outcome depends on the circumstances. Legal guidance helps protect what can be protected.
Which debts are wiped?
Most — loans, bank, authority and supplier debts. Non-dischargeable debts include child support, fines and debts created by fraud.
Do you help English speakers?
Yes. We assist English-speaking residents and olim throughout Israel, with fast responses by phone and WhatsApp.
Have a question about your situation?
Don’t stay in doubt — reach out for personal, professional and confidential guidance in Afula and across Israel.