Insolvency and Economic Rehabilitation Bill (Amendment No. 10) (Insolvency Proceedings for an Individual with Low-Amount Debts), 5786-2026

This bill seeks to streamline insolvency proceedings for individuals with low-amount debts. The main proposed changes are: replacing the term "Execution Registrar" with "Insolvency Registrar" throughout the law. Updating the local jurisdiction for managing insolvency proceedings so that they are conducted in the district of the individual's residence, the location of their assets, or their primary place of business. Adding provisions regarding financial training that the individual will undergo during the repayment plan period to ensure proper financial conduct. Updating the mechanism for adjusting amounts set in the law so that they are rounded to the nearest ten shekels. The bill refers to a debt amount of up to 176,231 new shekels (an amount updated annually). In addition, several technical and stylistic adjustments are proposed, such as changing chapter headings and adjusting phrasing. The bill seeks to allow the Insolvency Registrar, in certain cases, not to convene a meeting to formulate a repayment plan if there is no reasonable prospect of such a plan being approved, in an attempt to reduce unnecessary proceedings and save time. It is proposed to add a new chapter dealing with "financial conduct and protection of the individual's assets during the repayment plan formulation period." Within this framework, the individual will be required to assist to the best of their ability in formulating a plan, will not be able to remove assets from their possession or change their status without the Registrar's approval, and will not be able to enter into transactions or receive credit without the Registrar's approval. These restrictions will apply for 120 days, with the possibility of extension. It is also proposed to limit the possibility of imposing an attachment on a bank account, salary, or pension of the individual, except in cases of alimony debt. Additionally, it is proposed to allow meetings to be held via technology (such as video calls), provided that this does not harm the proceeding and the individual consents. It is also proposed to clarify that a repayment plan approved by creditors will not require further approval by the Registrar, unless there are considerations regarding the fairness of the proceeding. The bill enters into force 30 days from the date of its publication.

Source: הצעת חוק לקריאה הראשונה