Insolvency & economic rehabilitation
Debt is not the end of the road. The law allows you to stop collection, settle debts and start again – if the process is planned correctly.
The Insolvency and Economic Rehabilitation Law
Insolvency lawyers in Petah Tikva: opening orders for individuals, debt discharge, stay of proceedings and creditor arrangements for companies, liquidation and receivership – alongside representation of creditors, guarantors and shareholders.
The 2018 Law replaced the old bankruptcy ordinance and winding-up rules. The emphasis shifted from penalising the debtor to economic rehabilitation, alongside fair recovery for creditors.
Individuals: where to file
| Total debts (2026, indexed) | Forum |
|---|---|
| Above ₪176,923 | Application to the Insolvency Commissioner (online) |
| ₪58,794 – ₪176,923 | "Low debts" track before the Enforcement Registrar, including a payment-arrangement stage |
| Up to ₪58,794 | Generally through the Enforcement Office; an order only for special reasons |
Source: Insolvency and Economic Rehabilitation Law, 5778-2018, ss. 103–104, 186–187.
Once the order is granted, collection stops, a trustee is appointed, a monthly payment order is set and, at the end, a discharge order cancels the remaining debts, except those the law excludes (e.g. maintenance and criminal fines).
Companies and businesses
- Stay of proceedings and rehabilitation with an initial rehabilitation outline and funding sources.
- Creditor arrangements approved by class meetings and the court.
- Liquidation where rehabilitation is not viable.
- Receivership and enforcement of charges.
- Personal exposure of directors and guarantors.
A company may apply when its debts exceed ₪29,487 (2026). A creditor may apply, among other grounds, where a debt above ₪88,461 remains unpaid 30 days after a proper demand.