Debt collection

Creditors often asking for our help in recovering debts from private individuals or clients. Debt collection is not a simple process. There are many mechanisms for pressuring debtors. Sometimes even a simple telephone conversation with a debtor can produce results. However, one must first know a few secrets.

Debts in Israel and consultations with a lawyer

The commonest reason in Israel for the creation of debt is a check that was not honored by the bank. Every resident of Israel uses checks on a daily basis. From the legal standpoint, a check is the equivalent of cash. Nonetheless, banks often return checks unpaid for a variety of reasons: insufficient funds in the bank account of the issuer, the issuer’s instructions to cancel the check, etc. Any check can be immediately presented for collection to Israel’s Law Enforcement and Collection Authority (LECA or in Hebrew – Hotsaa LePoal).

Sometimes you are not even aware that you have in your possession a document that can be utilized to retrieve a debt through enforcement proceedings. One such example is a promissory note; another is a receipt. Any agreement indicating a specific amount of money that is to be paid can also serve as such a document. What is common to all these documents is that they all specify a precise amount of money and the terms for its payment. With any of these documents relating to your debtor, you can initiate legal proceedings for the payment of the debt with LECA.

Being the winning side in a lawsuit, you might think that your problems are over and that the money will be transferred to you immediately. However, even after losing a lawsuit, a debtor might still be able to avoid paying back the money owed. The retrieval of debt in such circumstances will require you to leave the legal decision concerning the repayment of the debt in LECA’s hands.

Retrieval of debts through negotiations by telephone

It is reasonable to assume that some debts can be retrieved simply through a conversation between a lawyer and the debtor. Thus, in any case, whether the debt is the result of a returned check, a promissory note that has not been honored or a court verdict, our first step is to try to talk to the debtor by phone. The percentage of debts that are retrieved by telephone is rather high. This does not mean that, in cases of debt retrieval by telephone, the debtor will immediately pay back the money owed. Nonetheless, we can arrive at an agreement with the debtor regarding the procedure for the debt’s repayment. Such agreements must be finalized in writing. If the agreement is violated, the creditor is fully authorized to immediately apply to LECA and to open a file for the retrieval of the debt with all the consequences for the debtor that will follow from such a move.

Debt collection through bailiffs and Law Enforcement and Collection Authority

Debt collection through this agency is a sensible method but one that is sometimes somewhat complicated. LECA’s procedures require that you yourself must apply for the seizure of the debtor’s assets, for the imposition of various restrictions and for other methods of debt collection. LECA will carry out only those actions that you have specifically applied for. The only exceptions are the following two types of cases:

1. those that involve the collection of alimony payments;
2. those that constitute accelerated legal proceedings aimed at the collection of small debts of up to NIS 25,000.

Only in these two types of cases bailiffs, themselves undertake the actions necessary for the collection of the debt. In all other cases, the creditor is responsible for all debt collection actions.

What instruments exist for pressuring debtors?

• Seizure of bank accounts, movable property, and real estate properties;
• Seizure of the debtor’s assets that are in the possession of a third party, including wages; Arrest of the debtor, in cases involving a collection of alimony payments;
• Seizure of border exit.
• Restriction on driver’s license and others injunctions.

These and other actions are in themselves instruments of legal debt collection. We present this list for your information. The business of knowing how to correctly use these instruments is our specialty as professionals.

Communication with the debtor through the lawyer. Appeal to the debtor

To resolve the situation sometimes it is enough to send a warning letter. The Attorney will act on your behalf, motivate debtors to pay the debt quickly, before opening a lawsuit in the bailiff’s office (Otsaa LePoal).

In our office, you will find the lawyer with experience in solving debt collection problems.

How can Debt Counselor help you?

To recover the debt from the debtor by check and debt obligations or by court order:

• Filing a case in the bailiff office;
• Verify whether your debtor is included in the Bankruptcy Registry;
• Check the status of your debtor’s bank account.

Сontact us for a free consultation session by sending a message using the form on this website or by calling us at +972-52-639-2289 (within Israel), +7925-171-0755 (from Russia).

Sincerely yours,
Anastasia Fux, Attorney at Law