Not only do large numbers of Israelis face collection actions, the severity of these actions is quite unusual on an international basis. Many debtors – currently over 70,000 – are formally recognized as being of “limited means,” meaning that the collection registrar acknowledges that in their current circumstances they have no realistic chance of ever paying back their debts in full and are required to make reduced monthly payments that match their current ability to pay. Yet even when these debtors adhere scrupulously to the payment schedule, thus fulfilling all the conditions demanded by law, they generally face intrusive sanctions. These include limitations on use of bank accounts and credit cards, which in the modern economy create a degree of economic exclusion. Another widespread sanction is prohibition on leaving the country. This is in sharp contrast to Europe and North America, where restrictions of this nature apply only to debts relating to child support. The sanctions are not only difficult, compared with other developed countries, but also prolonged; debtors often face these constraints for years and even decades. taubcenter.org.il/index.php/publications/e-bulletin/israels-treatment-of-insolvent-debtors/lang/en/?utm_source=All&utm_campaign=Taub+Center+Winter+2012+&utm_medium=email
Posted on: Tue, 26 Nov 2013 06:54:43 +0000
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