Israeli Court Approves Woman Paying Tiny Fraction of $330,000 Debt

A Haifa Magistrate's Court approved a woman's request to settle a debt of approximately NIS 1.24 million (about $330,000) by paying only NIS 100,000 (about $26,500) in 50 monthly installments. The 61-year-old woman, who is married with five children, is unemployed and subsists on state benefits.

The insolvency proceedings began in June 2024. The majority of her debt, NIS 1.05 million, is owed to Bank Leumi, with another creditor being Cellcom. A key factor in the court's decision was the lack of any realizable asset to cover the debt. An "imputed notice" on a relative's apartment, registered in the couple's name for 30 years, was deemed to have no real value as the purchase deal was never finalized due to the husband's medical condition.

Her lawyer argued that the notice was without substance. The court-appointed trustee, Adv. Amid Machol, accepted the offer of NIS 100,000 spread over 50 payments, with a minimum monthly payment of NIS 1,500. The supervisor of insolvency, Adv. Yaniv Ohana, was also represented at the hearing.

Judge Efraim Chizik approved the settlement, citing the woman's dire financial and employment situation and her husband's inconsistent work history. He was convinced that the woman had no actual rights to the property that could be seized to satisfy her debts.

Crucially, the creditors did not object. Bank Leumi explicitly agreed to the proposal, and while Cellcom did not formally consent, it did not oppose the plan and did not attend the hearing, which the judge interpreted as tacit agreement. The judge thus adopted the proposed arrangement, requiring the woman to pay NIS 100,000 in 50 installments, with the final NIS 25,000 balance due by the end of the period.