Debtor's Interest Charges Significantly Reduced by Execution Registrar
Translated & summarized from Bizportal by baba
An Israeli Execution Registrar significantly reduced interest charges on an 82-year-old disabled debtor's files, citing special reasons and the debtor's difficult financial situation. The registrar rejected creditors' claims that the debtor's property value should prevent such reductions, noting their long inaction. In one case, a company that bought a 1.6 million shekel debt for 120,000 shekels had all interest charges wiped out after failing to appear in court.
The story in 6 lines · by baba
- Execution Registrar Chen Levy significantly reduced interest on an 82-year-old debtor's files.
- The debtor is disabled and works two jobs to support himself and his wife.
- Creditors sought to seize the debtor's valuable farming plot rights.
- A company that purchased a 1.6 million shekel debt for 120,000 shekels had all interest charges erased.
- The registrar noted creditors' failure to act on their rights for many years.
- The debtor claimed he had already paid one of the debts in full.
An 82-year-old man, recognized as a 66% disabled individual by the National Insurance Institute and working two jobs to make ends meet, has had significant interest charges on his debts drastically reduced by Execution Registrar Chen Levy of the Tel Aviv office. The debtor has maintained an open consolidated enforcement file for over 25 years, consistently making payments. Despite his age and disability, creditors recently sought to appoint a receiver for his home.
Levy ruled that there were "special reasons" to substantially reduce the accumulated interest on the debtor's three consolidated files. Two of these files, opened 27 and 24 years ago due to guarantees for hundreds of thousands of shekels, had ballooned to over 6 million shekels in debt. A third file, from a private creditor opened 14 years ago, also saw interest charges reduced.
Creditors claimed the debtor, who received his rights to a farming plot for free 50 years ago, was hiding financial capabilities and that his family had a monthly income of approximately 17,000 shekels. They sought to appoint a receiver for his half-share in the plot, valued at 20 million shekels. The debtor countered that he receives a 4,700 shekel disability pension, works limited hours at a post office and a chicken coop, and lives in a dilapidated house.
Levy was convinced by the debtor's situation, noting he is an elderly, ill man whose wife is also elderly, and who works to live with dignity. She rejected the creditors' argument that the valuable property should prevent interest reduction, stating their rights were not new and they had not acted for years. The registration of the lien on the property only occurred in 2023, and she emphasized that a creditor cannot sleep on their rights.
In a unique turn, the original creditor in one file sold the debt, which had grown to about 1.6 million shekels, for only 120,000 shekels. Levy ruled that the new buyer, a company that acquired the debt with the knowledge that interest could be reduced, entered the transaction knowingly. The company's representative failed to appear at the hearing, leading Levy to impose 5,000 shekels in state expenses on the company. In another case involving the company Agrexco, which is in liquidation, Levy stated that the debtor's claim of having already paid the debt must be decided first before any reduction can be determined for that file.
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