When someone owes you money, the uncertainty, stress and frustration can be unbearable.
Likewise, for businesses, an unpaid debt can cause a domino effect. Unpaid bills and debts can hinder daily workflow, they can lead to difficulties in meeting operating expenses, and even damage a company’s revenues and profits.
If you’ve already started the debt collection process, but you’re having some difficulty navigating the legal steps, we are here for you! In the following articles, we answer some essential questions that you might already be asking including, ‘What is a payment order?, ‘How do you open an enforcement case?’, ‘How do you reach a debt settlement? and more.
A beneficiary is the person who is owed money in execution. A beneficiary must have a binding document such as a judgment, promissory note, check or contract, to demand the funds from the enforcement authority and compel the debtor to repay. A debtor is a person who has received a judgment or other binding document (mortgage deed, contract, checks, etc.) stating that they must repay money that is owed. The execution office is the governing body responsible for settling funds between the beneficiary and the debtor in accordance with regulations and the specific circumstances of the case.
Winners can demand the payment of an unpaid debt through abbreviated or ‘short track’ execution routes, that can take up to 8 months. The ‘short track’ option is possible only if the amount is within 25,000 (NIS) Any amount higher than 25,000 (NIS) would have to go through regular, or ‘long track’ proceedings. In the ‘short track’ framework, the executive registrar can take appropriate actions on his own initiative, making the system more efficient. After filing for a short track execution, the execution authority can collect the unpaid debt with hardly any further involvement by the winner. The ‘short track’ route is not possible in the following cases: alimony debt, applications for financing a pledge or mortgage and application against a debtor who has been given a case consolidation order.
One can submit two types of charges for execution, namely bills or judgments. Bills – a bill is a document that states the amount a customer (person or entity) has to pay a person or entity for goods received or services rendered. Bills include checks, mortgage bills, pledges etc. Judgments – a judgment is a payment order given by the court to the debtor, following a financial claim or non-payment of an existing debt. Judgments can be issued by administrative or rabbinical courts.
The head of the enforcement authority operates at the judicial and administrative level. Judicial level – the chief executive can issue decisions and orders against people or entities Administrative level – the chief executive is responsible for writing warnings and orders, overseeing investigations into debtors’ capacity to repay, and more.
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