Are You Owed Money?
Representing Creditors in Enforcement and Insolvency Proceedings
Looking for a Reliable Firm to Protect Your Financial Interests?
Legal Counsel for Debt Collection Proceedings
We Will Make Every Effort to Recover Your Funds
Mor & Co. Law Firm
While some debtors are truly insolvent and legal proceedings against them may prove ineffective, the majority of debtors hold valuable assets that can be reached through proper legal channels. Some debtors attempt to transfer assets to third parties or conceal property to avoid repayment. An experienced debt collection attorney knows how to identify these tactics and take the legal steps necessary to recover the funds owed to you.
The Debtor Resides in Israel or the Palestinian Authority
Is the debtor subject to enforcement proceedings? Is the debtor in insolvency proceedings? Are you having difficulty recovering the money owed to you? Our firm represents creditors in all types of collection proceedings, including enforcement actions, insolvency cases, and cross-border debt recovery.
The enactment of the Insolvency and Economic Rehabilitation Law in 2018 introduced significant changes to Israeli debt collection procedures, primarily aimed at streamlining proceedings against debtors while balancing the rights of creditors and debtors. Understanding the current legal framework is essential for creditors seeking to maximize recovery in both enforcement and insolvency proceedings.
Full Legal Support for Businesses and Individuals in Collection Proceedings
Swift, Precise Action Is Critical to Prevent Asset Concealment and Creditor Preference
Quick and decisive legal action is essential to prevent debtors from concealing or transferring assets and from preferring certain creditors over others. Delays in initiating collection proceedings can significantly reduce the pool of assets available for recovery.
What Is Asset Concealment? How Can Assets Be Returned to the Creditors' Fund?
The most common tactic among debtors who anticipate potential insolvency is asset concealment. The classic scenario involves transferring ownership of valuable assets — such as real estate, vehicles, or financial accounts — to family members or related parties in order to place them beyond the reach of creditors. Israeli law provides legal mechanisms to reverse these fraudulent transfers and restore the assets to the creditors’ fund.
The Good Faith Requirement Extends Further Than You Might Expect
When a debtor’s lack of good faith in transferring assets is established to a high degree of probability — whether through the court-appointed trustee or through independent investigation by the creditor — the court may order the reversal of the transfer and the return of the assets to the insolvency estate. This remedy is a powerful tool for creditors and underscores the importance of thorough asset tracing early in the collection process.
How Far Does the Prohibition on Creditor Preference Extend?
Consider a scenario where a debtor owes 100,000 NIS to ten different creditors, each owed 10,000 NIS. If the debtor was insolvent and chose to repay only one creditor in full while neglecting the others, this constitutes creditor preference — a violation of the equal treatment principle in insolvency law. The court may order the preferred creditor to return the payment to the insolvency estate so that it can be distributed equitably among all creditors.
How Can You Determine Whether the Debtor Has Additional Assets?
It is essential to contact the relevant authorities — including the Official Receiver, the Land Registry, the Companies Registrar, and other public databases — as quickly as possible to identify any additional assets that may be available for realization. Early and thorough asset investigation is critical to maximizing creditor recovery.
Are you experiencing difficulty recovering money that is owed to you? Contact Mor & Co. Law Firm for experienced legal representation in debt collection and creditor rights enforcement.