2024-03-16 07:58:00
A person defined as a “debtor” will receive a discharge of debts amounting to 452 thousand shekels if he pays 48 payments of only 2,000 shekels. This is what Judge of the Jerusalem Magistrate’s Court, David Shaul Gabai Richter, stated. The judge issued the rehabilitation order even though the debtor purchased a Jeep shortly before entering the proceedings.
The story began when at the end of 2021 the debtor went to court and asked to start insolvency and financial rehabilitation proceedings. He then claimed that he is married and the father of five – one of whom has special needs, and works in a maintenance position with a monthly salary of approximately NIS 7,000. In addition, he receives a child allowance of NIS 880 per month, and his partner does not work. He claimed that the reason for the debt formation is the family’s living expenses, which are higher than the income.
At the beginning of the procedure it was determined that the debtor would pay NIS 150 per month to the creditors, and later the amount increased to NIS 850 per month. In the discussion held recently in the case, the parties agreed that a rehabilitation order should be given to the debtor, but there was a dispute over the details of the order, due to the debtor’s financial conduct.
In light of the findings that have emerged, indicating income of NIS 18,000 in the period before the opening of the procedure, the trustee and the appointed attorney claimed that the debtor did not exhaust his earning capacity. According to them, about two months before he asked to start the procedure, he purchased a Jeep using a loan he took out. It was also discovered that he is pursuing a claim for compensation for personal injuries, without requesting a permit for this, as required in insolvency proceedings.
Following these things, the trustee and the attorney in charge argued that the Jeep should be realized or its value redeemed, and part of the compensation awarded to the debtor should be transferred to the creditors, if he wins the personal injury claim he filed. The appointed lawyer recommended that the rehabilitation order would include 60 payments of NIS 3,000, and the sale of the vehicle worth NIS 136,000, so that in the end NIS 316,000 would be transferred to the creditors’ fund. In response to this, the debtor claimed that he had indeed worked for 11 years at another job with a good salary, until he was injured in a work accident in 2018, as a result of which he had to end that job, and move to his current job.
Regarding the Jeep, the debtor confirmed that he took a loan of NIS 150,000 for its purchase, but according to him he gave the vehicle to his brother, who is the one paying for it. Since the vehicle is pledged and the loan for it is paid by the brother, it is argued that there is no point in realizing it. In connection with the compensation claim, the debtor claimed that during one of the hearings in his case, he orally requested permission to conduct it.
The judge accepted the debtor’s explanation regarding his earning capacity, and made it clear that his current income should be examined and not the one he had in the past. However, he noted that there is a real difficulty in ignoring the purchase of the Jeep: “If I determined that the individual showed initiative and flight in connection with his desire to increase his earning capacity, then in relation to the purchase of the vehicle, the individual showed extreme irresponsibility,” the judge wrote. Even though the loan is currently being paid by someone else, the judge ruled that the value of the vehicle must be stated as part of the rehabilitation order. Regarding the tort claim, the judge accepted the debtor’s request orally during the hearing, and determined that he should be allowed to pursue the claim subject to the fact that if he receives compensation for loss of earnings – it will be transferred to his creditors.
In the end, as mentioned, the judge issued a financial rehabilitation order to the debtor, under which he will have to pay NIS 96,000 in 48 payments of NIS 2,000 – of which NIS 800 is for the Jeep. If the debtor meets the conditions, he will receive a discharge of debts at the end of the period.
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joke
Shay 03/16/2024 10:41
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People are encouraged to take advantage of the system. In our country only fraudsters are successful.
closed
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