Haifa Enforcement Officer Cuts Debt From 13,000 to 6,600 Shekels Over Old 800-Shekel Checks

Two checks totaling 800 shekels, drawn in 2002 and 2003, led to enforcement proceedings against a debtor in Haifa nearly nine years later. By the time the cases were opened in 2011, the debt had ballooned quietly to over 13,000 shekels due to accumulated interest and fees. The debtor, who was 44 when the cases began and is now 59, claimed in April 2026 that the debt had been fully paid back in 2003 and accused the creditor of bad faith for waiting almost a decade before initiating collection proceedings.

The debtor argued that the checks were originally issued to a private software service provider, not the creditor company, and that this provider transferred the checks to the creditor only after the statute of limitations had expired. He supported his claim by noting continued business relations with the service provider after 2003. The creditor countered that proper warnings were issued in 2011, the debtor did not object at that time, and partial payments over the years indicated acknowledgment of the debt.

Issam Haik, the enforcement officer in Haifa, rejected the debtor's claim of repayment due to lack of evidence, emphasizing that the burden of proof lies with the debtor. However, Haik significantly reduced the accrued late payment interest, citing the creditor's long inaction and reliance on the enforcement process as a "savings plan" that unfairly increased the debt. Invoking a recent amendment to the Enforcement Law effective January 2025, Haik cut the debt roughly in half, lowering it from about 13,184 shekels to approximately 6,600 shekels, mainly by reducing interest and fees.

The decision reflects a growing trend among enforcement officers to intervene in cases where creditors delay action for years, even if the principal debt remains valid. Each party was ordered to bear its own legal costs, and the enforcement office was instructed to update the debt balances accordingly. This case highlights the impact of legal reforms empowering enforcement officers to moderate excessive interest charges in long-dormant debts.