Jerusalem Court Orders Unusual Debt Repayment Plan for 27-Year-Old
Translated & summarized from Ynet by baba
A Jerusalem court has ordered a 27-year-old man with debts of approximately 567,000 shekels to pay 2,000 shekels monthly indefinitely due to "extreme lack of good faith." The judge expressed doubts about the debtor's reported income and past business dealings, which included a company with over 60 million shekels in revenue before a significant loss. The unusual order requires ongoing review and full financial disclosure, with future debt discharge conditional on compliance.
The story in 6 lines · by baba
- A 27-year-old man faces indefinite 2,000 shekel monthly debt payments ordered by a Jerusalem court.
- The court cited the debtor's "extreme lack of good faith" and incomplete financial disclosures.
- Debts total approximately 567,000 shekels, including 113,000 shekels in non-dischargeable taxes and fines.
- The debtor previously ran a company with 60 million shekels in revenue before a 10 million shekel loss.
- The unusual order requires ongoing review and full financial transparency from the debtor.
- Future discharge of past debts is conditional on the debtor's compliance with the court's directives.
A Jerusalem Magistrate's Court has issued an unusual economic rehabilitation order for a 27-year-old man, requiring him to repay his debts at a rate of 2,000 shekels per month indefinitely. Judge Ofer Yuval expressed skepticism regarding the debtor's reported income, stating that his conduct must be examined over an extended period before a final payment duration can be determined. The individual, a divorced father of one, has had ten debt claims approved against him totaling approximately 567,000 shekels. Of this amount, about 113,000 shekels are non-dischargeable debts owed to the tax authorities and the National Center for Fines Collection.
Prior to the "Swords of Iron" war, the debtor owned a construction contracting company that served other firms and contractors. In 2022, the company's revenue exceeded 60 million shekels with a pre-tax profit of 2.6 million shekels. However, the following year, the company reported a loss of 10 million shekels. The debtor claims his income was between 12,000-15,000 shekels per month during "good years" but now earns only 6,000 shekels as a salaried employee in general labor, presenting pay stubs as evidence.
Further questions arose concerning a car valued at 80,000 shekels, purchased with financing. The debtor asserted he sold it for scrap due to engine and gearbox issues, but provided no documentation. He also stated he lives with a friend rent-free and is obligated to pay 1,200 shekels monthly in child support, though he did not present a court order or proof of payment. The trustee and insolvency commissioner, Adv. Shmuel Michael, recommended a monthly payment of 3,500 shekels for five years, based on an earning capacity of 12,000 shekels.
However, Judge Yuval opted for a lower monthly payment but left the duration open-ended. He cited the debtor's past management of a company with tens of millions in turnover and his employment of workers, suggesting the debtor was not maximizing his earning potential. The judge noted the debtor's "extreme lack of good faith" in the proceedings and failure to provide complete and truthful information to the trustee. Consequently, the court mandated the 2,000 shekel monthly payments indefinitely for now, with the trustee to provide an update on the debtor's conduct and findings in one year. The debtor must submit full documentation, maximize his earning capacity, and comply with all requests. Future discharge of past debts is conditional on fulfilling these orders, excluding the non-dischargeable debts.
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