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Do you owe hundreds of thousands of shekels to creditors?
There's a way out of the pit
From a marketer who owed NIS 340,000 to a young woman whose father entangled her with a debt of half a million shekels: how to deal with huge debts, and why not to despair
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Debts
Adv. Bilal Abu Lil, in collaboration with Zap Legal
Thursday, 31 December 2020, 09:59
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Not sympathetic, but neither is the end of the world.
What do you do when you have big debts?
(Photo: ShutterStock)
Accumulating hundreds of thousands of shekels in debt can cause families to crash.
It causes a charge not only to material difficulties in daily conduct, but may lead to great mental distress.
However, the main message to be conveyed to debtors is that one must not despair.
There is always, even in the most difficult and complex situations, a way out of debt, even if it is a debt of a very large amount of hundreds of thousands of shekels.
The important thing is, first and foremost, not to lose hope, and not to neglect the treatment of the difficult situation into which you find yourself.
In the coming lines we will seek to provide some examples of debtors, who have fallen into heavy debts and were on the verge of despair.
After examining the personal circumstances of each of them and the intervention of the writer, the debtors were able to obtain an exemption from the vast majority of their debts, sometimes in an astonishing way.
First case: the
young man paid NIS 24,000 out of a debt of NIS 340,000
The story of Y., a 38-year-old from Nazareth, is very difficult.
The young man who works as a jade got into financial trouble when he built his house, and began taking out loans to finance construction.
At the same time, the young man had to deal with another front, when his brother got into a drug problem.
The young man was forced to support his brother financially, which led to his own deterioration and eventually to a debt of about NIS 340,000.
The helpless young man did not know how to deal with the variety of cases that were opened for him in execution, and following the intervention of the Knesset, he turned to the path of consolidating cases (that is, he paid all his creditors centrally once a month). Years, that is, NIS 24,000 in total.
In light of the fact that Shi is an employee, and receives a salary of about NIS 10,000 every month, the judge asked him to return a more significant amount.
However, after a number of hearings, in which the difficult situation regarding him and the difficulties he faces were presented, it was decided to give him a discharge from his full duties.
The young man who paid 24 out of 340 thousand (Photo: ShutterStock)
Case Two: The
young woman whose father complicated her received a dismissal of about half a million shekels
also for D., a 24-year-old young woman from the northern region, has not been easy in recent years.
Following heavy debts she accumulated to the gray market, she was forced to flee to the south of the country.
In A.'s case, the source of the financial entanglement was her father.
To help the father, D. took out loans on the gray market, and accumulated huge debts of half a million shekels.
D. was also consolidated, and for four years she paid the creditors a minimum amount of NIS 250 each month.
After this period of time, and since D.'s difficult situation was proved to the court, the court was convinced that there was no chance that D. would be able to repay her full debts, and she was fired from most of the amount.
Third case:
The contractor paid the bank NIS 20,000 out of a debt of NIS 2.5 million.
In another case, a contractor in his 50s from the north became entangled following a loan he took from a bank in the 1990s.
The contractor took out the loan to help his son who was married at the time and wanted to build his house but was unable to repay the loan due to a deterioration in his business.
The contractor's debt swelled to a huge NIS 2.5 million.
In the meantime, he himself had difficulty making a living, and received an income guarantee from the Social Security.
First, a payment order was issued to the man, in which he paid his creditors a very low amount of about NIS 200 a month for two years.
However, the bank demanded that he be charged at least NIS 150,000-200,000 of the total debt.
After a year and a half of negotiations, the bank agreed that the debtor would pay only NIS 20,000.
The bank finally realized that this was a helpless debtor, who would not be able to repay the debt, and preferred to see at least a small portion of the money back.
Need to know who to contact (Photo: ShutterStock)
Fourth case: the
dismissal of about NIS 80,000 for a construction industry worker who
also
became disabled
in the forties, fell into heavy debts, which was not to his advantage.
Che, married and the father of three small children, previously worked in construction and was injured in a work accident, which resulted in a disability.
His wife is not working due to her medical condition, and the family subsists on the salary of his sister who lives with them.
Chen has incurred heavy debts of NIS 118,000 following a business he operated six years ago in the field of construction.
Following a business dispute between him and the contractor, he did not receive the money he was entitled to for work he performed.
As a result, he was unable to repay a large loan he had taken from the bank and got into debt.
Czech was also consolidated, and as part of this he was required to pay NIS 800 to his creditors.
C. paid the payments monthly, for four years, however after the Registrar of Execution was convinced that he had no assets and no ability to pay his debts in the foreseeable future, it was decided to dismiss him.
In conclusion, the
conclusion that emerges from the cases described above is that even those who owe hundreds of thousands of shekels must not lose hope.
There is always something to do, and even with large and powerful entities, such as banks or non-banking companies, it is possible to deal with, and under certain circumstances reach, a far-reaching compromise.
The author, who represented the debtors described above, specializes in execution, receivership and bankruptcy, and accompanies dozens of debtors.
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