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What steps can be taken before applying for insolvency? - Walla! Sentence

2022-12-04T07:09:33.338Z


Many debtors wish to avoid the status of bankrupt and entry into insolvency proceedings Many debtors wish to avoid entering insolvency proceedings for a wide variety of reasons (Photo: ShutterStock) In September 2019, a law regulating insolvency and financial rehabilitation procedures, or as they were called in the past - bankruptcy procedures, entered into force. The main purpose of the Insolvency and Economic Rehabilitation Law is to prioritize the economic rehabilitation of debto


Many debtors wish to avoid entering insolvency proceedings for a wide variety of reasons (Photo: ShutterStock)

In September 2019, a law regulating insolvency and financial rehabilitation procedures, or as they were called in the past - bankruptcy procedures, entered into force.

The main purpose of the Insolvency and Economic Rehabilitation Law is to prioritize the economic rehabilitation of debtors, to expand the amounts that creditors will receive and to save on bureaucratic procedures.

Within the framework of this law, the possibility of consolidating cases in execution, which allows the debtor to gain recognition as a means-limited debtor, was significantly limited.



Nevertheless, many debtors wish to avoid entering into insolvency proceedings for a wide variety of reasons.

First, there are professionals for whom bankruptcy could significantly harm their professional future.

For example, lawyers, brokers and accountants who have been declared bankrupt will not be able to continue practicing their profession.

Second, many debtors wish to avoid realizing their assets as a result of insolvency proceedings, and prefer to raise funds to recover their debts from other sources.

One of the most popular solutions for debtors who wish to avoid entering insolvency proceedings is a creditor arrangement.

Advantages of a creditor



settlement As part of a creditor settlement, debtors who are in insolvency proceedings may offer the various creditors a sum of money intended to settle their debts towards them as part of a compromise.

The most significant advantage for the debtors within the creditor settlement procedure lies in the fact that it allows them to get rid of their debts without having to conduct insolvency proceedings with all that is implied by them.

In most cases, a creditor arrangement is the fastest and most efficient way to bring insolvency proceedings to an end.



One of the prominent players in the legal arena in the field of debt settlement is Masala Law Firm, which was established in 2015 by lawyer Aicholtam Masala.

The firm specializes in insolvency law, economic rehabilitation and debt settlements.

Also, the office has a real estate department that deals, among other things, in apartment sale transactions. In addition to the office's branches in Ashdod and Ramat Gan, in 2018 a branch was inaugurated in Ethiopia, which deals with accompanying Israeli companies in the field of infrastructure, construction and agriculture.



As part of its activities, Masala law firm offers a multi-step solution for clients whose total debts do not exceed NIS 150,000 and who do not wish to go bankrupt.

In the first stage of the process, the firm's team examines the client's total debts and helps him find avenues for raising the required amount for the settlement proposal.

Close to 30% of the cases that the firm manages end up in this way, even before the initial application for insolvency proceedings.



Ways to escape from bankruptcy



At the same time, it should be emphasized that the efforts do not end even if some of the creditors do not agree to the settlement proposal.

In such a situation, the office staff turns to proposing a creditor arrangement through the court.

The challenges in the creditor settlement procedure held in court lie in the debtor's dependence on the creditors.

This dependency arises because the approval of the court is subject to obtaining a majority of quorum (that is, a majority of the creditors) and a majority of value (that is, the amount of money that the customer owes) of 75%.

If the required majority is reached, the court will not interfere with the consent of the creditors and no objection is expected from the commissioner.



In conclusion, against the background of the enactment of the Insolvency and Economic Rehabilitation Law, many debtors are looking for new ways to escape from bankruptcy.

Masala law firm provides a package of services that allows the client to settle his debts and avoid the realization of his assets.



For contact and further details, you can contact by phone

- 053-9387292



to the firm's page on the legal website.



The article is courtesy of Legal Zap



The information presented in the article does not constitute legal advice or a substitute for it and does not constitute a recommendation for taking procedures or avoiding procedures.

Anyone relying on the information in the article does so at their own risk

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Source: walla

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