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4.97/5 Average rating from 600+ reviews
WHY USE DEBITURA? 

Recover your debt in Israel easily.

Debitura is a specialist in debt recovery services in Israel. Our expert team offers a complete range of services, including accounts receivable management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. Our deep understanding of Israel's debt collection laws and regulations enables us to provide businesses with efficient and effective solutions to recover outstanding debts.

Receive consistent support from beginning to end.

Tailored debt recovery plan.

We have a team of over 500 professionals who specialize in international debt collection.

We achieve a 87% success rate at the most minimal cost.

Here's a possible rephrased headline: "LOCAL LEGAL PARTNERS: Leading Debt Collection Lawyers in Israel."
Hamarganit 4 , Holon
IDCC

Welcome to IDCC International Debt's Collection Center Leading Debt Collection Agency for International Receivable in Israel,USA Our deal is based fully on no-cure-no-pay principle No Recovery No Fee, simple as that The first step is yours. We can begin collecting your money as soon as tomorrow

Lawsuits
Legal collection
Debt enforcement
15
2015
Debt collection agency
Tel Aviv
Eli Shimony - Law Office

Eli Shimony, an Israeli Law Firm, practices Inheritance laws, Will & testament law, Commercial–civil law, Real estate law, Corporate law, Intellectual property, Class actions, Litigation, Mediation & Arbitration, Financial claims, Cryptocurrency, Banking, Compliance, and Investments. We provide our clients with clear, accessible consultation, along with close legal guidance and litigation in Israel.

Lawsuits
Legal collection
Debt enforcement
3
2014
Law firm
9 leonardo da vinci st. , Tel Aviv 6473413 ISRAEL
Yoram Fay law office

We have practiced law for more than 30 years to the best satisfaction of our clients. We are known for our creativity, proffesionalism and our commitment to taking an extra mile for the benefit of our clients

Lawsuits
Legal collection
Debt enforcement
4
1990
Law firm

The ultimate guide about debt collection in Israel

If you need help getting money that a business or customer in Israel owes you, then you have come to the right place! We have helped hundreds of other businesses get money that was owed to them in Israel.

If someone owes you money and they live in Israel, it might be hard to get the money back. This is because there are differences in language and culture, as well as different laws and customs. Additionally, Israel is far away, which makes it difficult to collect a debt.

Finding someone who owes you money is easier when you use a collection agency that knows the laws and customs of the country where the debtor lives.

At Debitura, we care about people. We try to get your money back while still being friends with the person you gave the money to. We are always fair in what we do, but we also make sure that your reputation is the most important thing!

If you want to learn how to collect debt yourself, keep reading this guide. It will tell you everything you need to know about the process in Israel. If you would rather work with a local law firm that is experts in recovering debt in Israel, we can help you with that too.

New to debt collection?
The debt collection process can be complex and daunting for those new to it. Our team of experts is here to help you understand the process and navigate it with ease. Get free expert advice on your specific case, provided by our team of experienced professionals.

At Debitura, we provide an easy way to collect your debt in Israel and other countries. Get started today by uploading your claim. We will review your case and provide you with 3 free quotes from local debt collection lawyers in Israel within 24 hours. We use a people-oriented approach with the latest tech-driven solutions to get the results you need while preserving customer relationships. We have a lot of friends who help us with our work. We have debt collectors, attorneys, suppliers, and vendors. All of these people help us do our job. We are grateful for all of these relationships, no matter how big or small they may be.

We work with the following process: 
1

Upload claim

Begin the debt collection process in Israel today at no cost. Easily set up a free profile and quickly upload your case in only 2 minutes.

2

Pre-legal

We use a proven pre-legal recovery process to try and collect your claim for the first three months. And the best part? It's 100% no-cure-no-pay.

3

Legal

In case your claim remains unpaid during the pre-legal phase, we offer 3 quotes from our debt collection attorneys who operate locally.

4

24/7 updates

You get access to our online portal where you can track your case in real-time

Introduction to collecting debt in Israel

Are you struggling to get paid by your Israeli customers? Do not worry; we can help you collect the money they owe you.

The person who owes money is called the debtor. The person who gave them the money is called the creditor. If the creditor collects the debt, it's called first-party collection. If someone else does it for the creditor, that's third-party collections.

  • In Israel, payments normally happen between 120 to 150 days between domestic companies. But if the companies are from different countries, the payments will happen more quickly.
  • In Israel, the law says that lawsuits up to approximately EUR 20,000 can be dealt with quickly. But this does not always happen. Sometimes it takes a long time and costs a lot of money, especially when the lawsuit is between people from different countries.
  • There are different ways to try to get money from someone who owes you money, but it is usually hard to succeed. In September 2019, a new law started that may help us get money from people who owe us money. The new law gives people who are owed money a better chance to get their money back, especially if the person who owes them money does not have much money.

Days Sales Outstanding (DSO)

In Israel, payments for domestic companies take place 120 to 150 days after the transaction. However, if the transaction is not secured, there may be a delay of 15 to 30 days. The payment method also differs depending on the sector.

Main corporate structures

Liability for business debts means that someone is legally responsible for paying them. This can be determined by different legal structures, or ways that the law says who is responsible.

  • Some businesses can be run by just one person, who is registered as a Sole Trader. But if two or more people want to own and operate a business together, they can form a Partnership. In this case, the partners would be jointly responsible for the business.
  • Partnerships are when two or more people work together. They can be held equally responsible for what the partnership does, or some partners can have more responsibility than others. Usually, the partner who is responsible for managing the partnership has more liability than the other partners.
  • Incorporated entities may also be used (as provided under the Israeli Companies Ordinance of 1983). Private Limited Companies are popular because the shareholders (up to 50 members) are only liable for the company’s debts in relation to their capital contribution, and there is no minimum capital requirement. Larger businesses would rather be set up through Public Companies. A minimum capital of NIS 25 million is required for this type of company. With this type of company, shareholders are only liable for the value of their share. Debts may only be recuperated on the company’s assets.

The debt collection process in Israel

The debt collection process in Israel usually happens in more than one step.

Our process for collecting debt in Israel is shown in the image below.

The debt collection process in Israel here:

1 Upload your claim:

Debitura will help you find a company to help you get your money back. You can choose from three different companies. This service is free.

2 Amicable collection:

The collection process begins when we send reminders to the person who owes you money. The reminders are sent through email, SMS, or letter. The goal is to get the debtor to pay or agree to a payment plan. If we are successful in getting the debtor to pay, then you will pay a small success fee. If we are not successful, then you don't have to pay anything!

3 Evaluation:

If the person you are trying to get money from has not paid you after you have talked to them, it is time to decide what to do next. We will look at how much money you are owed, the chance of getting paid, and other factors to help you decide what to do. There are three typical next steps:

A Surveillance:

If your claim is for less than 2,000-5,000 Euros, it is often not worth it to take any more legal action. In this case, we recommend "debt surveillance." This means that we will keep trying to contact the person you owe money to and try to reach an agreement about payment.

B: Legal collections:

It is a good idea to take legal action if you have a big claim. The way to do it is different depending on the specific kind and amount of the claim. Generally, it will take between one and a year and a half to finish the process.

The text is saying that if you have a big legal problem or claim (something you are demanding to be compensated for) it would be beneficial to take it through the legal process, however the way to do it changes depending on the specific claim itself. It's also mentioning that this process can take a while, around a year and a half.

C: Debt enforcement:

If the person you are owed money from has agreed that you are owed money, or if you have a court order, you can ask the bailiff to help you get your money.

Debitura can help you with all three steps of the process in Israel.

5-star user rating5-star user rating5-star user rating5-star user rating5-star user rating
"Thanks to Debitura, our company has finally recovered the outstanding debts from our Israeli clients. Their efficient and professional approach to debt collection in Israel is unbeatable. Highly recommended!"
Miri Shapira - Chief Financial Officer (CFO)
5-star user rating5-star user rating5-star user rating5-star user rating5-star user rating
"Debitura's debt recovery services in Israel were a lifesaver for us. They helped us recover outstanding debts efficiently and effectively, saving us time and money. We highly recommend their services!"
Talia Cohen - Chief Financial Officer (CFO)
4.97/5
Average rating based on feedback from over 600 satisfied clients
87%
Average debt recovery rate, exceeding industry standards
100M+
Debt recovered for our clients in the past 18 months

Amicable collection in Israel

At Debitura, we offer a 100% risk-free and efficient process for Amicable collections. To get started, simply submit your claim and we will begin working on it within 24 hours.

We will contact your debtor through different channels in Israel. This might include email, text messages, letters, phone calls, and social media.

The goal of this process is to either:

A) make the debtor pay the full amount 

B) make the debtor agree that they owe money and start a plan to pay it back

If the person you are trying to get money from has disputed your claim, you cannot start with an amicable resolution. This means you must go directly to legal collections.

Late Payment Interest

In Israel, people usually have to pay interest on late payments starting from the original due date. This is true if the contract says that the person has to pay it. But the law does not have a lot of details about this.

Get started with
amicable debt collection

Upload your claim and get started with our 100% no-cure-no-pay collection solution.

100% free
Get the best price
No-cure-no-pay
Fast collection process
High recovery rate
100%
Risk free
Upload claim!

Debt enforcement in Israel

If you have written proof that the person you are suing owes you money, or if a court has already said they owe you money, you can go to the bailiff's court in Israel to get your money.

A judgment is final when all appeal venues have been used up. If the debtor does not pay the judgment, you may need to request help from the Execution Institute (Hotsa'a Lapoal). You will need a lawyer for this.

The process and how much it will cost varies depending on your situation. You can upload your case onto Debitura's website and you will receive 3 specific quotes based on your claim within 24 hours.

Get started with
debt enforcement

Upload your claim and get 3 FREE quotes from our local collection partners.

100% free
Get the best price
No-cure-no-pay
Fast collection process
High recovery rate
100%
Risk free
Upload claim!

Insolvency proceedings in Israel

The final stage you can initiate if your debtor cannot pay his debts is an insolvency procedure. The goal of this procedure is to sell the debtor's assets and give the money to the creditors following the debt priorities.

  • There are no particular out-of-court proceedings.
  • Restructuring the debt: A proposal is drafted by the debtor and must be approved by a majority of participants, with no limitation as to how much of the debt must be repaid. The procedure usually comes along with a petition to the court for a stay on the proceedings. During the proceedings, a trustee is given responsibility for managing the company in place of directors.
  • Winding-up proceedings: When restructuring fails, liquidation may commence upon request of debtor or creditors, managed by appointed liquidator. Proceeds are distributed according to priority rules among creditors including procedural costs, tax debts, fresh money loans during insolvency (recognized by court), fixed charges holders , preferential creditors , unsecured creditors.
  • Receivership: Rather initiated by secured creditorsto enforce contractual agreements and recuperate specific debts without representing other creditors.
  • Cancellation of suspect transactions : trustees and liquidators may void transactions made within certain time periods before insolvency that favor one creditor over others or reduce estate value.
  • Insolvency proceedings take two to three years on average.

Israel country risk profile

We have studied Israel's critical financial data and extrapolated a risk assessment. You can use this analysis to guesstimate your payment terms and manage your risk when trading with customers in Israel.

Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26

The analysis is concluding that the risk of running a business in Israel is medium-low. Based on this medium-low score, we recommend being careful providing credit and considering charging upfront payment or using credit insurance when trading if you don't know the customer in Israel well. If possible, provide a short credit period or even better upfront payment. The medium-low risk score is based on the following factors:

Economic Risk:
3
Economic Risk:
3
Economic Risk:
3
Economic Risk:
3
Economic Risk:
3
Economic Risk:
3
Business Risk:
2
Business Risk:
2
Business Risk:
2
Business Risk:
2
Business Risk:
2
Business Risk:
2
Political Risk:
3
Political Risk:
3
Political Risk:
3
Political Risk:
3
Political Risk:
3
Political Risk:
3
Commercial Risk:
2
Commercial Risk:
2
Commercial Risk:
2
Commercial Risk:
2
Financing Risk:
1
Financing Risk:
1
Financing Risk:
1
Financing Risk:
1

The economic risk in Israel

Economic risk in Israel is medium (3 out of 6). An economic risk of 3 out of 6 is low in Asia.

GDP and economic growth are critical drivers for economic risk.
The GDP of Israel is 481,59 bn. USD (2021), growing by 8,19% per year.

In terms of the size of its economy, Israel ranks #29 out of 183 countries and has a large economy.

In terms of growth rate, it is ranked #31 out of 183 countries and is therefore considered a fast-growing economy.

GDP per capita is 51430 USD, ranking Israel number #18 out of 183 countries. This means the purchasing power of citizens in Israel is high compared to the rest of the world.

You can see a more throughout picture of GDP and economic growth in Israel in the table below:

GDP and economic growthLatest value
Economic growth: the rate of change of real GDP8,19%
Gross Domestic Product, billions of U.S. dollars481,59
GDP per capita, current U.S. dollars51430,08
GDP per capita, Purchasing Power Parity41582,47

Another critical driver for the economic risk score is the inflation rate and the interest rates. You can see a more throughout picture of monetary KPIs in Israel in the table below:

Monetary KPI'sLatest value
Inflation: percent change in the Consumer Price Index1,5%

The inflation in Israel was 1,5% in 2021 which is considered a very low inflation rate.

The business environment risk in Israel

Our analysis shows that the business environment risk in Israel is low (2 out of 6), which is a low risk score in Asia.

The business environment risk are determined by the level of economic freedom and rights in a country. You can see the critical facts for Israel in the table below:

Economic freedom indexLatest value
Property rights index (0-100)84
Freedom from corruption index (0-100)77
Fiscal freedom index (0-100)60
Business freedom index (0-100)74
Monetary freedom index (0-100)84,4
Trade freedom index (0-100)84
Investment freedom index (0-100)75
Financial freedom index (0-100)70
Economic freedom, overall index (0-100)74

As you can see in the table, the property rights index is 84 in Israel, which is considered quite good in Asia.

The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 74 in Israel, a pretty average score for a country in Asia.

Israel's overall economic freedom index is 74 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.

The political risk in Israel

The political risk in Israel is medium, with a score of 3/6. This is a relatively low political risk score in Asia.

The governance and political stability indicators are critical drivers for political risk. An overview of Israel can be seen in the data below:

Governance and political stability indicators Latest value
Rule of law index (-2.5 weak; 2.5 strong)0,94
Government effectiveness index (-2.5 weak; 2.5 strong)1,29
Control of corruption (-2.5 weak; 2.5 strong)0,86
Political stability index (-2.5 weak; 2.5 strong)-1,06
Corruption Perceptions Index, 100 = no corruption59
Shadow economy, percent of GDP19,18%

The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.

When doing business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.

In Israel, the rule of law index is at 0,94 points, with the score going from -2.5 (weak) to 2.5 (strong). Israel has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.

Other drivers for the medium political risks are the average control of corruption, the very weak political stability index, and the normal shadow economy that is 19,18% of Israel's GDP.

The commercial risk in Israel

In Israel, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is pretty average compared to the average in Asia.

The commercial risk is influenced by a country's international trade relationships. You can see some of the key facts for Israel in the table below:

International trade and investment Latest value
Exports of goods and services as percent of GDP29,7%
Exports of goods and services, annual growth13,56%
Imports of goods and services as percent of GDP25,26%
Trade balance as percent of GDP4,44
Trade balance, billion USD21.36
Foreign exchange reserves, billion currency units212.93

Israel has a foreign exchange reserve of 212.93 bn. USD.

Israel has a positive trade balance of 4,44% of GDP. The meaning of this is that Israel imports fewer goods and services than the country exports.

The annual growth of exports of goods and services has been growing 13,56% annually - now 29,7% of GDP. Import of goods and services represents 25,26% of the GDP in Israel.

The financing risk in Israel

We have calculated the financing risk to be 1/4, which equals a very low risk. A very low financing risk score is low for countries in Asia.

The country's banking system, efficiency, and stability influence the financing risk. Additional facts and info can be found for Israel in the table below:

Banking system efficiency and stabilityLatest value
Index of legal rights for creditors and borrowers (0 = weak to 12 = strong)6
Credit information sharing index, 0 (low) - 8 (high)8

In Israel, the credit information sharing index is 8 on a scale from 0 (low) to 8 (high). This means the accessibility and quality of credit information available in Israel is high.

This makes it easy for you to understand the credit risk of your counterpart in Israel. Based on this, it should be possible to to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.

Your juridical rights as a creditor are 6 out of 12 and, therefore, weak.

Debt collection in Israel: Frequently Asked Questions (FAQ)

How does debt collection work in Israel?

In Israel, debt collection typically involves multiple steps. First, a reminder is sent to the debtor to encourage payment or a payment plan. If this is unsuccessful, an evaluation is made to determine the best course of action, which may involve debt surveillance, legal action or debt enforcement. Legal action can take up to 1.5 years for resolution. Debitura can help with all aspects of the debt collection process in Israel. Payments between domestic Israeli companies usually take 120-150 days. A new law helps creditors recover debts when the debtor has limited resources.

What is the debt collection process in Israel?

In Israel, the debt collection process typically involves three steps: pre-legal collection, legal debt collection, and debt enforcement. The first step involves sending reminders to the debtor to encourage payment or a payment plan. If that is unsuccessful, the process moves to evaluation to determine the best next course of action, which could involve surveillance, legal collections, or debt enforcement. Debitura can assist with all three steps of the process. Legal collections can take up to a year and a half to complete.

What legal options exist for debt collection in Israel?

If the debtor disagrees with the debt or doesn't pay, legal options are available for debt collection in Israel. A civil lawsuit may be necessary if the debt is disputed. Local lawyers must handle legal actions. Debt enforcement and insolvency proceedings are also available. The insolvency procedure aims to sell the debtor's assets and prioritize the payment of creditors. Different courts handle different types of cases, depending on the debtor's address. Legal proceedings could be complicated and costly, and using Debitura can help compare prices for legal services.

How much does debt collection cost in Israel?

The cost of debt collection in Israel varies depending on the specific case and desired actions. At Debitura, we offer a no-cure-no-pay model for pre-legal collection, with a success fee between 10-20%. Prices for legal actions vary. Debitura can provide you with 3 quotes from the best debt collection lawyers in Israel.

How long does debt collection take in Israel?

The duration of debt collection in Israel varies from case to case, depending on the debtor and the nature of the case. In cases that are resolved in the pre-legal phase, the collection process usually takes between 3-6 months. However, in cases where legal action is required, debt collection typically takes between 12-18 months. It is important to work with a professional debt collection agency to ensure the best possible outcome for your case.