Israel Bankruptcy in Israel is governed by the Insolvency and Rehabilitation Law, 2018. Insolvency proceedings below ₪150,000 will be administered entirely by the Enforcement and Collection Authority. Insolvency proceedings above ₪150,000 individual debtors file the documents will be conducted before the official receiver (the Insolvency Commissioner) and, if a creditor want to file against a debtor, he needs to open process, before the magistrate's court that hears in the district. Company bankruptcy will be conducted before District Court. Simultaneously, with the issue of the order for the commencement of insolvency proceedings, the Insolvency Commissioner shall appoint a trustee for the debtor and an audit will be carried out, in which the debtor's economic capability and his conduct will be examined (lasting approximately 12 months). At the end of this audit a payment plan is established, at the end of which the debtor will receive a discharge. The default scenario is a payment period of three years; however, the court reserves the right to increase or decrease the period depending upon the circumstances of the case. If the debtor has no proven financial ability to pay the creditors, he may be granted an immediate discharge. Since 1996, Israeli personal bankruptcy law has shifted to a relatively debtor-friendly regime, not unlike the American model.
Israel Bankruptcy in Israel is governed by the Insolvency and Rehabilitation Law 2018 Insolvency proceedings below ₪150000 will be administered entirely by the Enforcement and Collection Authority Insolvency proceedings above ₪150000 individual debtors file the documents will be conducted before the official receiver (the Insolvency Commissioner) and if a creditor want to file against a debtor he needs to open process before the magistrate's court that hears in the district Company bankruptcy will be conducted before District Court Simultaneously with the issue of the order for the commencement of insolvency proceedings the Insolvency Commissioner shall appoint a trustee for the debtor and an audit will be carried out in which the debtor's economic capability and his conduct will be examined (lasting approximately 12 months) At the end of this audit a payment plan is established at the end of which the debtor will receive a discharge The default scenario is a payment period of three years; however the court reserves the right to increase or decrease the period depending upon the circumstances of the case If the debtor has no proven financial ability to pay the creditors he may be granted an immediate discharge Since 1996 Israeli personal bankruptcy law has shifted to a relatively debtor-friendly regime not unlike the American model