Who is afraid of execution?

Video Transcription: Hello, my name is with me. This video is actually the opening video for a short series of videos that we are preparing as part of the “New Page” initiative, my goal is to give you some tools and information on dealing with debts that have come to be collected by the Execution Office.
I’ll preface by saying: Our goal is to talk about small debts, debts that can actually be dealt with. When you have debts that go to execution and are disproportionate, you have no chance of paying them in any foreseeable period, you don’t really have to deal with execution, you need other kinds of solutions.
In this context, I invite you to a series of lectures that we have given regarding insolvency, bankruptcy and creditor arrangements, and you are invited to receive the relevant information there. I’ll preface by saying what our goal is: There are many good things to do with your money that don’t involve financing collection agency lawyers unnecessarily. We will go over what happens in the execution office, understand how the processes happen and mainly try to understand how we can avoid getting there. I know that many times applicants who come to me feel as if execution is some kind of monster that you can’t understand what’s going on there and harass them and things seem completely out of control.
So it’s important to say that execution is a system with rules. We will go over the rules a bit, try to understand how things work, try to understand why when we know the rules, it is much better possible to avoid more difficult situations and solve the problems earlier, cheaper and in a way that will be simpler and save money and aggravation. I will preface by saying that there are quite a few bodies that can help and give professional advice, often for free in dealing with execution. We will dedicate a special video to this, but this is already the good news that can already be said here.
So we’ll start right away and really you are welcome to stay with us and hear more details about what it looks like, how it works and what can be done.

What is an execution?

Video Transcription: Hello. In this short video, we will try to talk a little bit about what execution is, especially what it is not and what the collection process looks like. So let’s start with what execution is and what it isn’t.
Execution is not a court. What do you mean? This is not a place to make claims about whether or not I owe the money. These are claims that can be made in court. Debts that have not yet been clarified in court can be reached in court, by filing an application called “objection.” The objection takes the hearing from execution to court. But if you’re in an execution chamber, such claims don’t fit. Moreover, execution is a place for creditors—for people who owe them money. The system is built to let them collect the money that, as we said, the legal story is that they deserve this money. Therefore, as a debtor, a person who owes money to someone, execution is a place that is best avoided.
Why? Mainly because it’s a very, very expensive thing. When execution proceedings are initiated, their entire cost: a lawyer that the creditor – the person to whom money is owed – and the fees he paid in the execution office automatically add up to the debt you have to pay.
To get some idea: a check of NIS 500 that has reached repayment, reached collection at the Execution Office, can within a month and a half or so become a debt of NIS 1,300, and within quite a few more months become a debt of a few thousand shekels already, from a check that started at NIS 500.
So perhaps the most important thing to understand is that it’s better not to get to the execution at all. How do you avoid going to the execution? For this you need to understand what the collection procedure looks like.
So how does the collection process begin?

It will usually start with a letter you receive from a lawyer. At this stage, there is still no file in the execution office, and the creditor’s lawyer warns you that he is going to turn to the execution office. Note: This is the stage to get started. This is the stage to seek help and this is the stage to contact the creditor in order to prevent the debt from reaching the execution office. At this stage, the costs are still relatively low. There is relatively much more to do. What can I do? Basically, two things: Or offer a lump sum of money that will close the debt. The more you can give one such amount of money on a one-time basis, the more you can haggle over how much you need to pay. Or reach a spread for payments directly with the creditor. Then you can also determine for yourself the interest you will pay and not suffer from high interest rates charged by the execution. Anything like that, should be done in writing. Do not reach undocumented agreements, after that you will not be able to prove to anyone that you have reached this agreement and you will not be able to prevent a case at the Execution Office from being opened. If you do not do anything following receipt of the letter, a file will be opened at the Execution Office and you will receive a warning letter. The warning letter has already been sent from the Execution Office and gives you between 20 and 30 days, depending on the type of procedure, to act.
What can you do following the warning letter? Basically, two things, besides paying off the debt of course. You can file an objection. The objection will take the hearing from execution to court, and then there will be, more or less, a normal court proceeding where you can argue whether or not you should pay the debt. If you don’t dispute that you need to pay off the debt, you can apply for a payment order. A payment order is actually an execution order that allows you to pay each month a certain amount of money that you can meet according to your financial ability. Note: If the monthly payment you make is less than the interest rate, you are in a situation that is not actually an execution situation. You are essentially insolvent. What do I mean? You have a debt of NIS 100,000 in execution, the interest that accumulates on the debt each month is higher than the payment order, say NIS 200 a month. So if you pay 200 a month, you’ll never settle that debt. Not in every visible range. In such a situation, you are essentially insolvent. And I invite you to see the series of videos that deal with exactly this situation and what can be done about it. But execution is not the place for you. If you do not act even after receiving the warning letter, execution proceedings will be initiated against you. They will begin to impose restrictions on you, to make redemption and foreclosure processes, and this is actually the most difficult situation in the execution office, it is also the most unpleasant situation, and from it it is very difficult to get out because you are now under pressure and the debt is already very, very large. It is very worthwhile to avoid this situation, because this situation is the most difficult situation to deal with.

If you do reach this situation, or if you want to receive advice earlier on what to do, there are quite a few factors you can turn to and get help from, and we will talk about this in the next video.

Who can help me with my execution?

Video Transcription: Hello. In this short video, we will talk a little bit about who can help me in execution once I have already reached this state. So, let’s preface by saying that it’s always a good idea to ask for help and it’s always a good idea to ask for help as early as possible. Time in execution works against you – there is no reason to wait and certainly no reason to ignore what is happening there. The good news is that there are many entities that can give you pretty good assistance in execution at no cost.
So really, first of all, there are quite a few NGOs that deal with these fields. There is the “Paamonim” association or organization that can provide you with a solution within the framework of the “Paamonim Answer” service. Yedid can provide you with an answer, and there is also a large array of clinics in law schools, which can give you advice and representation sometimes, in execution proceedings. Just Google “clinic” and “execution” and you’ll come up with quite a few addresses. Besides, there is the legal aid in the Ministry of Justice. They also assist with execution, if you meet the criteria. On their website you will find both the criteria for assistance and the process you need to do to get it.
Something about a private lawyer in the execution office. There are private lawyers who assist in the execution. When you want to contact a private lawyer, always stop for a moment and think about how much money is in danger versus how much money it will cost to contact the lawyer. Sometimes, even if it sounds annoying, it may be the best thing to do is pay off the debt. Let’s say the NIS 500 check that came to the execution office, even if we think it’s really unjustified and very annoying, than to contact a lawyer whose appeal will cost about a similar amount. So think about it. Certainly when it comes to something big, God forbid mortgage proceedings to evict you from the apartment or something like that, you should get private legal advice and even then you should do it with someone you received recommendations about, checked out, searched a little bit on Google and you know that this is the field in which he deals and he does it well. I hope these things help a little bit to remove the fog from this problematic point of assistance and help, and you can use it if you need to.

5 tips for dealing with execution

Video Transcription: Hello. In this short video we will talk about five points. That’s how tips, yes? How to deal with things in execution and why it is important to pay attention.
First things first: Always collect mail. Ignoring processes that happen in execution never serves you. On the contrary – it hurts you, the situation only gets worse and more expensive.
Two: In any case, it’s always a good idea to come for a consultation. Please note: There is a difference between receiving advice that can often be obtained for free, even from private lawyers or paying a few hundred shekels, and representation in a proceeding. Representation in a proceeding is expensive, it may often be worthwhile in execution proceedings. Even this is not always, depending on how much money is at risk. But advice is almost always worth getting and note that you can get a lot of pretty good advice for free, we talked about this in the previous video.
Third point: If you dispute that there is a debt, you should file an objection and take the case to court. So you need to find a lawyer to help you like in any court dispute over money you don’t think you should pay. It’s a civil lawyer. You need to find, it will cost some money or a lot of money, you should check it out. Again, you should find recommendations and look for a lawyer based on what you know or have heard about.
Point Four: If you have already admitted the debt or a judgment has been given, try as quickly as possible to get the matter out of execution and make a settlement directly with the creditor – the person to whom you owe money. Many times such an arrangement, which of course must be put in writing, will be cheaper and simpler to manage than to conduct proceedings within an execution office. Note: Don’t reach an arrangement that you can’t meet. You will lose the credit and after that it will be very difficult for you to continue working with the creditor.
And point five: self-diagnosis. Before you start dealing with execution, stop and think for a second what your problem really is. If it’s a small debt that you can solve by execution and end the story, great. Act in execution and the story can quickly be behind you. But if that’s just the tip of the iceberg, if the real problem is much worse than that, you don’t really have to deal with execution. You need procedures for people who are insolvent, people who can’t pay their debts.

And I invite you to see our lecture series on this matter. I hope these five points help to clean up the mess and can be used if you have to end up in this situation.

The guide was produced by the “New Page” association, which aims to help people who have become entangled in debt find a way out of them