For years, Israel implemented a law that applied an incarceration sanction on debtors through the collections authority (1961), this despite the fact that most debtors arrived to such level due to them being of poor and/or of low income population. This sanction lead to a situation where many debtors, who were threatened with the possibility of incarceration, tried to avoid it using an assortment of actions, including loans from the gray market, and the use of different criminal means, that worsened their situation, and their families'.
In 2011, amendment 29 to the seizure and collections law was introduced, that prohibits incarceration of debtors (except in cases of child support). On the other hand, a much more effective use of other collection methods has been implemented: termination of driver's license, stay of exit order, seizure of portables, restrictions on the use of credit cards, and more. In May 2014, a law, proposed by MK member Merav Michaeli, that absolutely prohibits incarceration as a means for collecting debts.
Full article in the Calcalist web site