Israel’s Insolvency and Economic Rehabilitation Law, 5778–2018 (in force since 15 September 2019) replaced the old bankruptcy ordinance and put rehabilitation — not punishment — at the centre. The process freezes creditors and attachments, sets a monthly payment based on your real ability, and ends with a discharge that erases the remaining debts so you can start a new chapter.
Who is the process for?
It is built for honest individuals and business owners who genuinely cannot repay their debts — whether after a business closure, divorce, illness, personal guarantees that were called in, or a drop in income. The goal is a fair repayment to creditors alongside a real fresh start for the debtor.
How we help
We map your full debt picture, open the proceeding through the right track (the Enforcement and Collection Authority for smaller debts, or the District Court with the Commissioner of Insolvency for larger ones), protect your home and essential assets as far as possible, and guide you all the way to discharge.
FAQ
Will I lose my home?
Not necessarily. Israeli law provides housing protections, and the outcome depends on the circumstances. Proper legal handling protects what can be protected.
How long does it take?
Usually around three to four years to discharge, depending on your circumstances and repayment ability; a faster track exists for smaller debts.
Have a question about your situation?
Don’t stay in doubt — reach out for personal, professional and confidential guidance in Afula and across Israel.