Israel Eases Debt Repayment Rules for Fines and Fees

New regulations in Israel have simplified the process for individuals to arrange installment payments for fines and fees, allowing them to do so online or by phone without prior official approval. The Authority for the Enforcement and Collection of Debts introduced these changes to streamline debt management at the Center for the Collection of Fines, Fees, and Expenses.

Under the updated rules, citizens with a total debt of up to 15,000 shekels can now divide their payments without submitting a formal request or waiting for approval. The minimum monthly payment is determined by the total debt amount, ranging from 250 shekels for debts up to 1,000 shekels, to 1,000 shekels for debts between 10,000 and 15,000 shekels.

Individuals can access this service through their personal online account on the authority's portal or by calling the contact center. They can choose the number of months for repayment and the preferred payment date, with text message reminders sent before each payment. This simplified option is available only once per individual upon their first application.

However, the new streamlined process does not apply to all types of debts. It excludes compensation payments to crime victims and fines imposed instead of jail time if an arrest warrant has already been requested. To halt ongoing enforcement measures, a separate written request is still required, even after arranging installment payments. Debtors can still apply to reduce late payment penalties.

Additionally, separate amendments address fines with upcoming payment deadlines. If a payment date falls after a bankruptcy or economic rehabilitation procedure has been initiated, the payment deadline is automatically extended. Such fines must be paid within 60 days after the bankruptcy proceedings conclude, restrictions are lifted, or the case is closed.