חוק ההוצאה לפועל (תיקון מס' 63), התשע"ט-2019Execution Law (Amendment No. 63), 2019 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The amendment to the law eases conditions for debtors who comply with payments set for them within the framework of a debt repayment schedule in enforcement proceedings. Thus, under the amendment, a debtor who complies with the payments set for them, and pays at least 3 consecutive payments, may be recognized as a "paying debtor" and receive two types of relief: (1) Reduction of default interest – the default interest added to the debt from the date of recognition onward will be reduced by 25%. (2) Suspension or cancellation of proceedings – various collection proceedings against the debtor will be suspended or cancelled, such as: attachment of a current bank account, attachment of salary, attachment of movable property and vehicles, and restrictions concerning the debtor's driving license. The amendment to the law does not detract from the authority of the Enforcement and Collection Authority registrar to refrain from granting the aforementioned relief if there is concern that it would frustrate debt collection. Likewise, the arrangement does not detract from the registrar's authority to suspend proceedings and reduce interest for debtors who do not meet the conditions of the aforementioned arrangement. In the event that the debtor does not comply with the payment arrangements set for them, and does not pay 3 payments in a year or six payments in total, it will be possible, at the creditor's request, to cancel their status as a "paying debtor" and the relief granted to them by virtue thereof. However, the registrar may prevent the cancellation of the recognition if the failure to comply with the payment arrangements resulted from circumstances justifying it, such as dismissal or illness. In addition, the amendment to the law enshrines the authority of enforcement and collection registrars to reduce interest accumulated in enforcement files, not only with respect to interest on promissory notes and claims for a fixed sum, as is currently the case, but also with respect to interest on judgments.

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