חוק חדלות פירעון ושיקום כלכלי (תיקון מס' 9), התשפ"ו-2026Insolvency and Economic Rehabilitation (Amendment No. 9) Law, 2026 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Law regulates the ability of debtors, both corporations and individuals, to obtain a judicial "stay of proceedings" order as part of a process for formulating a debt arrangement under Part 10 of the Insolvency Law. This amendment to the Law enshrines as a permanent arrangement, with certain changes, the temporary provision that had previously been established in Amendment No. 4 to the Law. Under the Law, a stay of proceedings order is granted when a debtor encounters financial difficulties, and instead of entering a full insolvency proceeding, seeks to reach an agreed debt arrangement with their creditors. The order brings about a freeze of legal proceedings and collection proceedings against the debtor. It is granted so that, during the period in which proceedings against the debtor are stayed, the debtor can negotiate with creditors with the aim of reaching an arrangement that will allow a return to normal business operations. The duration of the order is limited: for corporations, the order is granted for an initial period of up to 45 days and may be extended for a total period of up to 120 days; for individuals, the order is granted for an initial period of up to 90 days and may be extended from time to time without being limited to a maximum total period. During the stay of proceedings period, the debtor continues to control their assets and manage their financial affairs without the appointment of an external trustee, and instead, in order to protect the creditors, the court appoints an "arrangement manager" whose role is to oversee the process and assist the parties in formulating the agreements.

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