Rehabilitation of debtors and populations in prostitution in insolvency proceedings

The objectives of economic recovery are two: completion of insolvency proceedings and receipt of discharge and non-return to debts after discharge
Partners: joint
Target Population: Young Adults 18+ | Professionals
Program Duration: variable

Rehabilitation of debtors and populations in prostitution in insolvency proceedings

Holistic assistance to debtors in insolvency proceedings, in order to ensure successful completion of the process and prevent a return to the cycle of debt.

Background on the program

The Insolvency and Economic Recovery Law, which came into force in September 2019, defines as part of its goals the economic rehabilitation of debtors. The objectives of economic recovery are two: completion of insolvency proceedings and receipt of discharge and non-return to debts after dismissal.

Program Objectives

The program is designed to advance rehabilitation goals through three channels of action:

  1. Training for professionals on the subject of a poverty-aware service system and a rehabilitative work model
  2. Training and accompaniment of financial conduct for debtors in accordance with the law
  3. A limited and experimental response that will enable the provision of a holistic response of economic, legal and social accompaniment to debtors as part of the process.
    The program deals with the following areas:

    • Economic recovery: financial literacy, employment, exercise of rights, etc.
    • Economic, legal and social support for those dealing with debts
    • Removing bureaucratic barriers
    • Developing a poverty-conscious attitude that encourages economic rehabilitation among professionals.

Paamonim is responsible for the individual rehabilitation pilot, in which the goal is to assist debtors in insolvency proceedings to best complete the insolvency proceedings and to assist in the process that will reduce the return to the cycle of debt.

The program’s target audience

  • The debtor population – adults 18+ who are dealing with debts and have begun insolvency proceedings due to the inability to pay their debts.
  • The professionals – lawyers and employees of the Enforcement and Collection Authority.

Outline of the individual plan

Development and operation of an economic-social support package for debtors who are in the legal process of insolvency and have been referred in an “economic rehabilitation order” by a judge for economic training. The framework will be based on collaborations with existing programs in the community of the Ministry of Social Affairs and other bodies, and will focus on issues such as: realization of rights, employment and increasing income, emotional support, etc.

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