Is it worth filing for insolvency right now? - Walla! Trial

2020-12-20T07:19:37.292Z

Tens of thousands of businesses are trying to survive the corona and some have accumulated debts or are facing open cases in execution. what can they do? One of the answers is to resort to insolvency proceedings. But how does it really work? Here are the explanations you were looking for

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Is it worth filing for insolvency right now?

Tens of thousands of businesses are trying to survive the corona and some have accumulated debts or are facing open cases in execution.

what can they do?

One of the answers is to resort to insolvency proceedings.

But how does it really work?

Here are the explanations you were looking for

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Insolvency

Adv. Adi Rosenstein, in collaboration with Zap Legal

Sunday, 13 December 2020, 16:28

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How do you avoid losing everything?

(Photo: ShutterStock)

In recent days the public discourse has been about the day after the corona plague, but already now tens of thousands of businesses need to drive business activity and survive.

Businesses that have accumulated heavy debts or are facing open cases in execution will be able to apply for insolvency proceedings.

Is this recommended anyway?

And what does the procedure involve?

Lawyer Guy Rosenstein, owner of one of the well-known and leading law firms in this legal field, expands on the subject.

What is an insolvency proceeding and what is the contribution of the new law to shortening the proceeding?

Insolvency is actually another name for bankruptcy, and it stems from the Insolvency and Economic Rehabilitation Act.

In the past, many debtors could find themselves in bankruptcy proceedings for many years, not only did this keep them from changing their eyes but hurt their day-to-day conduct, sometimes the procedure took about 10 years, during which they suffered various restrictions.

Today, following the new law, the procedure is significantly shortened and stands at a range of only 12 months to 22 months, meaning that businesses, which can not meet the debts accumulated in their name, will be able to embark on a new path and get a resolution within a year or two at most.

What public interest is behind the law?

The law is intended to allow private individuals to write off their debts, including bio-debts in execution, debts to banks, credit companies, private entities and so on.

In addition, there are cases where alimony debts can be written off.

Our office has been approached and still is approached by people who have many years of debts in execution and they pay monthly payments that lead nowhere and do not settle their debt.

Through the Insolvency Law they can write off their debts once and for all and embark on a new path.

Is it possible to run the business in parallel with the insolvency procedure?

Certainly, many business owners represented through our firm including insurance agents, garage owners, trucking business owners, fast food sellers and businesses from other fields, continue to run their business as part of the procedure under restrictions.

This is actually the main advantage - to allow the individual to continue to run his business and earn as long as he does not create new debts.

Do people waive their debts and who is affected by the waiver?

I can tell about a customer with relatively low debts in the range of NIS 800,000, who reached an arrangement in which he was required to pay NIS 70,000 to write off his debts and get the solution. Those who contain the debts are the creditors of the individual including banks, credit companies and insurance companies In

which cases it is advisable to resort to insolvency proceedings?

I would not in any case recommend an insolvency proceeding. Thus.

People do not sleep at night due to debts and for them the situation does not look promising. Should a business owner fear his private assets to cover his debts?

It depends on the type of business. If the person owns a limited company, then he is actually hiding behind the "company screen" .

But if it is a licensed dealer, who signs his name in front of the suppliers, he is in fact exposed to the claims of creditors who will come to him, personally, to collect their debt.

This becomes more complex when the business owner is also the father of small children and all his property amounts to the house where his family lives.

I can share here a relatively encouraging story about clients with small children, who came to my office with debts of NIS 900,000, who chose to go into insolvency proceedings and left with an arrangement of NIS 300,000, while their home remained in their possession.

This is a decision from a real year of life, which saves families from dissolution.

How do I file for bankruptcy?

The application under the Insolvency Law is submitted to two bodies:

1. The Commissioner who is the official receiver.

2. The Magistrate's Court or the Bureau of Execution - depends on the amount of the debt.

Application conditional on payment of a fee to the Commissioner the amount of NIS 1,600, and this is prerequisite.

Who heads submit the application?

Adult who is over the age of 18. Of course, when the total debt is up to NIS 150,000, the application shall be submitted to the Execution Office, and when the total debt is NIS 150,000 and above, the application shall be submitted to the Magistrate's Court

which stages of the process?

after 30 days from the date of filing of the application, received an order convening, in which appointed "special manager" external lawyer on behalf of the official receiver, examines the economic quagmire that led to debts. A debit order must be paid every month and reports submitted, and within eight months an investigation is scheduled headed by the special administrator together with an accompanying representative from the law firm. At the end of the procedure, one hearing takes place, family and other additional components examined in relation to the individual case yours. finally, we get an haftarot settle debts. Our firm accompanies and represents people deep in debt and help them get to the right content.

lawyer Adi Rosenstein, an expert in processes of insolvency and execution, heads of offices of the most prominent representation People, who got into debt, enforcement proceedings

For debts to credit companies or private entities that have filed lawsuits against them or have accumulated large debts, for a consultation call and for more information, contact: 052-482-5377.

Article courtesy of Zap Legal The

information presented in this article does not constitute legal advice or a substitute for it and does not constitute a recommendation for taking proceedings or avoiding proceedings.
Anyone who relies on the information in the article does so at his own risk