Jerusalem Court Allows Young Father to Discharge Debt by Paying Only 15%

The Jerusalem Magistrate's Court recently ruled that a 32-year-old man who accumulated a debt of approximately 572,000 shekels can receive a debt discharge if he pays just 15% of the total amount. The judge, Ofer Yuval, took into account the financial situation of the debtor and his pregnant wife, who are expecting a second child. The man works as a cook earning about 10,000 shekels monthly, while his wife earns 4,500 shekels as a telephone operator. Their monthly expenses total around 20,000 shekels, expected to rise by 5,000 shekels with the new baby.

The debtor claimed his debts stemmed from loans taken to cover living costs and that his financial and health conditions are precarious, having suffered multiple strokes causing partial paralysis. He pays a high rent of 6,400 shekels and receives no family support. He owns only a simple motorbike valued at a few thousand shekels, which was agreed not to be sold to creditors in exchange for a payment of 7,600 shekels to keep it.

Represented by attorney Rafael Meir, the debtor proposed a repayment plan of 1,000 shekels per month for three years. However, the trustee, attorney Mordechai Michaeli, and the insolvency commissioner, represented by attorney Binyamin Reuven, opposed this, recommending a higher repayment of 147,000 shekels over 42 installments, citing the debtor's alleged failures to submit required documents and reports.

The debtor denied these claims and argued he could not afford such payments. Ultimately, Judge Yuval approved a significantly reduced repayment plan closer to the debtor's proposal: a total payment of 84,500 shekels (less than 15% of the debt) over 40 installments with varying monthly amounts. This ruling allows the debtor to rehabilitate financially while managing his limited income and family needs.