Israel Eases Debt Repayment for Fines Up to 15,000 Shekels

Israel's Enforcement and Collection Authority has implemented new regulations allowing debtors to arrange installment plans for fines and fees totaling up to 15,000 shekels. This new procedure enables debtors to set up payment schedules independently, without needing to submit a formal application or await approval. The updated rules, published in the official "Reshumot" bulletin, stipulate that the monthly payment amount varies based on the total debt. For debts up to 1,000 shekels, the monthly payment is 250 shekels; for debts between 1,000 and 5,000 shekels, it's 500 shekels; for debts between 5,000 and 10,000 shekels, it's 750 shekels; and for debts between 10,000 and 15,000 shekels, it's 1,000 shekels per month.

Debtors can initiate these installment plans through their personal online accounts on the Authority's website or by contacting the service center by phone. They have the flexibility to choose their preferred payment date and the number of installments, and will receive SMS reminders before each payment. This self-service option is available only once per debtor upon their initial engagement with the new system.

These new regulations do not apply to compensation for crime victims or to fines that substitute prison sentences if an arrest warrant has already been requested. Importantly, arranging an installment plan does not automatically halt collection proceedings; a separate written request is required for that. Debtors retain the right to request a reduction in late payment surcharges.

The rules also cover fines that have not yet reached their due date. If a due date falls after enforcement proceedings have been opened or after proceedings under the Insolvency and Economic Rehabilitation Law have been suspended, the payment deadline is automatically extended. The new deadline will be 60 days after the debtor is discharged from debts, the suspension of proceedings concludes, or the insolvency case is dismissed.