Capacity Investigation

Table of Contents

‘Knowledge is power’ and this adage is true even in the world of bankruptcy. When an individual or a company is unable to repay their debts, often the first step is to gather information about their financials. In bankruptcy proceedings, usually a debtor ends up paying a portion of the debt over a period of time. In some cases, debts may even be discharged. Regardless of the outcome, they start with an investigation. 

Capacity Investigation: What is it?

 The debt enforcement body (hotsaa lapoal) has the authority to conduct a financial assessment to determine how much a debtor can actually repay, given their financial situation. This procedure is known as an investigation of capacity because the enforcement authority registrar decides on a monthly payment order based on the debtor’s financial capacity. This information is critical for creditors, debtors and the enforcement authority.

How do I prepare for it?

While the capacity investigation procedure can be complicated, there are some things you can do to prepare, much like getting ready for a job interview. It is important that you have all the required documents. It is recommended to take some time to go over the ‘capacity investigation questionnaire’ and be mentally prepared for an oral interview. It should be noted if the debtor is a corporation, there is no obligation to appear in person for the investigation procedure. If you are not a corporation, a lawyer with experience in enforcement (hotsaa lapoal) will be able to clarify whether or not you need to appear for the investigation.

Why is it important to consult a lawyer? 

Capacity investigations are a frequent occurrence, yet when they are conducted, they are done so in great depth. The outcome of a capacity investigation can have far-reaching effects on one’s future, more so if you are the debtor. You can find more information and articles in the bankruptcy section of this website. 


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