KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER ISRAELI LAW -

The Israeli Parliament (Knesset) passed a new statute regarding insolvency law, which is named the Insolvency and Rehabilitation Law2018 (the "Law"). The Law was enacted on March 5, 2018 and came into force on September 15, 2019. The Law offers a comprehensive reform and provides Israel with modern insolvency legislation dealing with both corporate and individual insolvency.

The Law has three primary objectives:

1. to promote the debtor’s economic rehabilitation;

2. to maximize the debt repayment to creditors and to divide the debtor’s pool of assets in a more equitable manner between the secured and unsecured creditors;

3. to increase the certainty and stability by streamlining processes and reducing the bureaucratic burden.