The Insolvency and Economic Rehabilitation Law

In accordance with the provisions of the Insolvency and Economic Rehabilitation Law, 5778-2018, only a creditor who filed a debt claim may be entitled to a portion of the creditors’ pool assets when a dividend is distributed with the approval of the court (subject to the trustee’s decision regarding the existence of a debt and the amount of the debt).

It will be emphasized that a creditor who did not submit a debt claim on time, as well as a creditor who submitted a debt claim late and was not granted an extension of time, will not be considered a creditor and will not be entitled to receive a dividend as part of a distribution.

For further reading – the Insolvency and Economic Rehabilitation Law, 5778-2018 (especially Chapter I to Part IV of the Law)

1. A debt claim is a claim filed by a creditor of a debtor in insolvency proceedings. The debtor can be an individual or a company.

2. Any creditor who submitted a debt claim in a manner that meets the requirements of the Insolvency and Economic Rehabilitation Law, 5778-2018 and the Insolvency and Economic Rehabilitation Regulations, 5779-2019 may participate in the insolvency procedure and be entitled to receive a future dividend, or any payment from the insolvency procedure fund [subject to debt resolving by the trustee which will be given in the case of each creditor, as detailed below].

3. All debt claims must be submitted online to the website in charge of insolvency proceedings. however, a creditor who is not represented by a lawyer and has difficulty submitting the debt claim online can submit the debt claim physically, at the offices of the commissioner in the relevant district [Tel Aviv] by personal delivery or by registered mail with delivery confirmation. [If the debt claim is submitted offline, a copy of it, including confirmation of submission to the commissioner, must also be submitted to the trustee at the email address

4. A debt claim will include the following details: the facts to substantiate the claimed debt and the repayment date; Information regarding the components of the debt, including interest components and linkage; If the debt is a secured debt – the amount of the secured debt must be specified, as well as details regarding the collateral, the date the collateral was issued and its registration. Information regarding any amount transferred to the creditor on account of the claimed debt, including details of the date of the transfer and providing references; information regarding the creditor’s right of set-off, if any, together with a copy of the submitted notice of set-off; Information regarding the status of the debt – secured debt, preferential right debt or general debt; Information regarding guarantors of the debt or debtors who are indebted to the debtor in the alleged debt; Creditor details and bank account number for payment. A secured creditor may announce in the debt claim his intention to realize the pledged property in his favor. The creditor will attach references to substantiate the claimed debt, including agreements, confirmations of bank transfers, relevant correspondence, receipts and/or any other reference to support the amount of debt claimed by the creditor as well as the status of the debt. A confirmation of the payment of the fee will be attached to the debt claim.

Most of the debt claims are examined by the trustee who was appointed to handle the procedure and he decides on them [except for debt claims on behalf of employees and debt claims on behalf of provident funds for contributions to employee funds].

The trustee’s decision determines both the amount of the approved debt and the status of the approved debt.

As a condition for submitting a debt claim, a fee of NIS 31 must be paid on the appointed website on the commissioner’s website (link to

After paying the fee, you can file a debt claim online (link to

Since the online form is Hebrew only, you may file a debt claim physically using the form which was translated for you by the trustee – click here to download the form.

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