Seizures and Confiscation through the Collection Authority

Seizures and Confiscation through the Collection Authority

The law allows the collections authority to capture different assets belonging to the debtor by serving him with an order of seizure.  The purpose of the order in to get the debtor to pay his debts to the different creditors without delaying the agreed upon time of payment.  From the moment that the seizure order is served, it must be registered in the allotted place based on the type of asset: real estate assets will be registered with the Real Estate Registrar, vehicles will be registered with the Department of Motor Vehicles, bank accounts will be registered with the different branches, etc.


Types of Seizures through the Collection Authority

There are several types of main seizures: Chattels Seizure – In this case are included portable assets, such as: televisions, computers, furniture, and more.  Prior to the seizure, the collections authority, sends a warning letter requesting that the debtor will pay off the debt by a certain date.  In cases where the debtor doesn't abide by the letter, collection agents from the collections authority arrive at the debtor's home, take the assets, and store them in designated storage unites.

Seizures of non-portable/real estate assets – here we are dealing with assets that  cannot be physically collected, such as different real estate assets, as well as vehicles.  The collection is done by an order to the bank to seize the debtor's money.


Seizure of Financial Assets – deals with different financial assets, mostly assets that in the custody of the bank: money in a bank account, saving accounts, securities, and more.


Seizure of Money Beholden to the Debtor by a Third party – this can be the salary of the debtors which is transferred to his bank account by an employer, or other sources of income.  A notice is sent to the third party, meaning the employer or the party that pays the debtor, requesting that the salary is sent to the collections authority.


Restriction Implemented on the Execution of a Seizure

The law includes several restrictions connected to the execution of a seizure, among them are: it is prohibited to seize basic items related to food and to the day-to-day living of the debtor and his family; pets, tools used by the debtor's livelihood and earnings, holy/religious items, prohibition of seizure of salary as by the law of protection of salary – if the amount of the seizure (which was determined in accordance with the debtor's familial situation) is higher than 80% from the amount of the salary, etc.


Order of a Temporary Seizure

The ordinances of the civil legal procedures allow for a temporary execution of the seizure, among them prior to the court's decision, in order to prevent trade of the debtor's assets, or their transferal to a third party.  If the prosecutor will not win the case in court, the seizure will be null and void.  If the prosecutor will win, the seizure order will be in accordance with the court's decision.



Annulment of a Seizure by the Collection Authority

An annulment of a seizure will only be exercised if the debtor will prove that the creditor's request does not abide with the different terms and criteria that allow seizure.  Some of these terms are: a seizure order that was given in absentia of the debtor, without allowing him to present his argument; the absence of proof that the collection of the debt will be problematic without the order; the absence of proof that the order was served in good faith due to a real reason and without intending to harm, or pose hardship, on the debtor, and more.  If the prosecutor does not abide by on of these terms, there is a cause to annul the seizure order, which must be presented to the collections authority.


Annulment of the Order with the Help of an Attorney

It is recommended to submit the request to annul the order with the help of an attorney that specializes in collections.  An experienced attorney is well versed in all terms and conditions required to submit a seizure order, and can help the debtor thwart the request for seizure, or at least ease the terms of the seizure, whether it is alleviating the terms of the payments, creating an order for payments, consolidating files, reaching an agreement with the prosecutor, etc.

לייעוץ חינם השאירו פרטים ואחד מנציגנו ישמחו לחזור אליכם
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