The law concerning collection from 1967, and its varied bylaws, regulate the process of enforcement and collection in the State of Israel. This process was designed to allow the winning party to take strategic steps toward the collection of funds. It is possible to direct the process by collection agencies, court rulings on behalf of the winning party, bills, promissory notes, and mortgage deeds.
It is important to note that the law provides the debtor several options by which to act that might delay the proceedings acted against him; or, alternatively, bring to their dismissal.
The corporate reality in Israel is not a simple one. Many businesses, large and small, deal every day with different collection issues. At times, the debtors deviate from payment agreements that were agreed upon in advance, and are unable to keep up with their agreed payment schedule due to temporary solvency difficulties. At its worst, this is about disbursing checks that have no coverage, evading agreements, and more.
Because collection of debts, in general, and conduct in front of the collection system, in particular, require exceptional expertise, there is no doubt that choosing a law office that handles collections is crucial and the natural thing to do. Such a decision has several advantages, and in order to succeed with the collection proceedings, it is imperative to act on time, but also to act appropriately.
Acting on Time
Many business owners and corporations know exactly how to manage their businesses fluidly and efficiently. Yet, many times, they do not know how to function correctly when faced with debts to different creditors.
The first rule in this issue is that it is important to act on time, meaning fast. Especially when dealing with substantial debts, a fast referral to a collection attorney could mean the difference between success and failure. In cases where the circumstances are not very clear, an urgent consultation with a knowledgeable attorney is required, and could clear up the situation. Thanks to the cumulative experience, and the ability to act in a systematic way, it is possible to turn an ambiguous debt into a collectible debt.
Many are aware that the debt situation in Israel is in a very bad place. The amount of defaulting checks is very large, and many businesses are in bankruptcy process and debt consolidation. Therefore, when acting with collection processes, it is imperative, not only to act fast, but also to act appropriately. Acting appropriately that is done by an experienced collection attorney, will utilize all of the appropriate, and available tools in order to reach the best results. In addition, intelligible actions will be taken based on the case itself, such as:
- Warning letters from the attorney
- Direct placing of seizures of the debtor’s assets
- Placing seizures on other actors, as a means of pressuring to reach an agreement
- Conducting different financial investigations, including an investigation of ability, and inquiries about fluid, and non-fluid assets of the debtor
- The use of additional sanctions – imposing restrictions on the debtor, such as: restrictions on one’s driver’s license, restrictions on one’s passport, restrictions within Israel Bank, etc.
Using the appropriate tools at the right time, will ensure reaching the best possible result. Attorney Maya Lavi has been working for many years in the area of collection, including handing objections to the payment of defaulted checks, requesting delays of proceedings and their dismissal, requesting with the claim “I paid”, requesting dismissal of restrictions, consolidating cases, requesting a declaration acknowledging a debtor as being of limited means.