Collect Debts in Israel

By: Adv. Eli Shimony

Any firm may find it difficult to collect debts, and this is certainly true in Israel. But with the correct information and strategy, it’s feasible to successfully collect debts in Israel and keep consumers happy. This article will discuss Israel’s legal framework for debt collection, effective ways to communicate with debtors, and advice on using the judicial system to recover unpaid debts.

Collect Debts in Israel – Legal Framework.

Understanding the legal system in Israel is the first step in debt collection. The Debt Collection Law, which was passed in 2011, is the primary law controlling debt collection in Israel. The law sets forth a variety of standards for written communication, the use of court orders, and the prescription of some forms of harassment by debt collectors.

The necessity for written communication is one of the main elements of the Debt Collection Law. Before pursuing legal action, debt collectors are required to give the debtor a written notice. The amount of the debt, the creditor’s name, and the deadline for payment must all be stated in the notification. Before any legal action is started, the debtor must be given a response period of at least 30 days.

The utilization of court orders is a crucial clause in the Debt Collection Law. Before implementing certain legal actions, such as wage garnishment or asset seizure, debt collectors must first acquire a court order. Only after the debtor has refused to pay the debt despite being given the chance to do so would the court issue the order.

Certain forms of harassment are likewise prohibited by the Debt Collection Law. Threats, intimidation, and other forms of harassment are not permitted by law when debt collectors are trying to collect a debt in Israel. Additionally, it is forbidden for them to call debtors at obnoxious times or approach them at their place of employment.

Optimal Procedures for Speaking with Debtors.

In Israel, effective communication is essential for debt collection. Businesses can improve their chances of collecting unpaid debts and preserve goodwill with customers by adhering to best practices for interacting with debtors.

Sending a written notification to debtors is the initial step in contacting them. The information in this notice should include the total amount owed, the creditor’s name, and the deadline for payment. Before taking any legal action, the debtor should be allowed at least 30 days to reply to the notification.

It’s crucial to communicate with debtors patiently and understandingly. Many debtors experience financial difficulty and may find it difficult to make payments. Businesses might improve their chances of collecting debt by being sympathetic and providing flexible payment choices.

Setting clear expectations is another effective strategy for communicating with debtors. The repercussions of not paying the debt, such as legal action or the effect on their credit score, should be explained to the debtors. Businesses can raise the possibility that debtors will take action to pay the debt by creating clear expectations.

Tips for Recovering Unpaid Debts Through the Courts.

The next course of action may be to use the legal system to recover unpaid debts if dialogue and negotiation are unsuccessful. It’s crucial to realize, though, that going to court may be expensive and time-consuming. As a result, it’s crucial to have a solid argument and to be well-prepared before moving forward.

Getting a court order is the first step in using the courts to recover a debt. Before pursuing specific legal actions, such as wage garnishment or asset seizure, this order is necessary. Businesses must demonstrate that the debtor has refused to pay the debt despite being given the chance to do so in order to get a court order.

It’s crucial to have all the required paperwork organized. This includes all written correspondence with the debtor, any communications with the debtor, and any other pertinent paperwork, such as contracts or invoices. A strong paper trail will support the argument and boost the likelihood of a successful conclusion.

Working with a lawyer is another suggestion for using the legal system to collect debts in Israel. A lawyer can represent the company in court, offer advice on the best course of action, and assist in navigating the legal system. Working with a lawyer with debt-collecting experience and familiarity with Israeli legal requirements is crucial.

Collect Debts in Israel – Conclusion.

Debt recovery in Israel might be difficult, but with the appropriate information and strategy, it’s possible to successfully recover unpaid payments while upholding goodwill with clients. Businesses can improve their prospects of success by comprehending the legal framework, adhering to best practices for engaging with debtors, and using the courts wisely. For the best outcomes, it is usually advisable to speak with a lawyer who has knowledge of Israeli debt collection.

Eli Shimony – Israeli law firm represents clients on all legal matters in Israel. For any questions please contact us and we will be happy to assist.
By email: [email protected], By phone: +972-52-2769773, +972-3-5507155.
The above is only general information and does not replace legal advice which is usually necessary before taking legal proceedings.


Adv. Eli Shimony

Attorney Eli Shimony holds a bachelor's degree in law (LL.B) and a master's degree in business administration (MBA), brings a broad legal knowledge in his areas of expertise. In addition, attorney Shimony holds a wide range of professional certifications in the fields of civil law, banking, compliance, intellectual property, corporate law and more... Attorney Shimony's main areas of practice: Civil and Commercial Litigation, Class actions, Mediation and Arbitration, Intellectual Property, Companies, Real estate, Wills and Inheritances, Monetary claims, Crypto Currencies, Banking, Compliance and Investments.

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