Execution proceedings: a NIS 300 debt from 1989 grew to 26,000, and the Tel Aviv execution registrar cut the interest in old files

What the files showed

According to the report, 27 execution files are open against the debtor, some of them from 1990 and 1998. Four lawyers representing eight creditors attended the hearing (Bizportal).

The review revealed unusual gaps between the principal and what had been paid. In one file the principal was NIS 325 and the debtor had paid NIS 3,620. In another the principal was NIS 191 and she had paid NIS 4,062. In a third, a debt of NIS 2,351 had yielded NIS 11,184 for the creditor. In a file opened in 1998 the creditor took no action until 2014, and in the files from 1990 no collection was made until 2015.

What the registrar decided

According to the report, the registrar relied on Amendment 75 to the Execution Law, which came into force at the beginning of 2025 and expanded registrars' power to reduce interest and late charges. She held that each case is examined on its merits, and that the debtor's personal circumstances are not a substitute for a specific review of the debts and of the creditors' rights.

On the passage of time, she held that it does not by itself cancel the creditor's right to be paid. But when accumulated interest and years without action are added to it, it must be examined whether leaving the full debt in place is consistent with the exercise of that power. Weight was given to creditors who did not appear, because they did not provide data justifying leaving the full interest in place.

The result, according to the report: old files in which far more than the principal had been paid, or in which creditors had not acted for years, were closed. In other files the interest was reduced. In three files from 1990, 1991 and 1995, the debtor will pay only the principal, legal fees and court costs. Two relatively new files were not changed.

Payment terms and restrictions

The debtor offered to pay NIS 1,000 a month. The registrar calculated that at this rate repayment would take more than 13 years, and set a payment of NIS 2,000 a month. As long as the payments are made in full and on time, no measures such as attachment of salary and bank account will be taken against her, and no new restrictions will be imposed. The same decision issued an order barring her from leaving the country (Bizportal).

What this means for creditors and debtors

The decision shows that an execution file left dormant for years keeps accumulating interest, and that the registrar may examine the size of the debt, not only its existence. For a creditor, an active, documented file with an up-to-date picture of the debtor's assets is worth more than an old file whose interest may be reduced. For a debtor, a breakdown of the payments in each file is the basis for a request to review the interest.

Sources: Bizportal, 03.11.2026. The source is in Hebrew.

Further reading: Locating a debtor's bank accounts, Asset search by ID number, and Hidden asset tracing service.

The information in this section is general and is not legal advice. This item is based on a Bizportal report, the full decision has not been published, and the names of the debtor and the creditors have not been published.