Jerusalem Court Grants Rare Debt Relief to Widowed Mother of Four
A Jerusalem court granted a rare financial rehabilitation to a 65-year-old widow with 1 million NIS in debts, allowing her to clear them for 21,600 NIS while keeping her savings.
A Jerusalem Magistrate's Court has granted a rare financial rehabilitation plan to a 65-year-old widow and mother of four, one of whom is battling cancer, after she accumulated debts exceeding 1 million NIS. Judge David Shaul Gabai Richter ruled that she would receive a discharge in exchange for paying just 21,600 NIS, while her severance pay and advanced training fund would remain in her possession.
The debtor, who resides in an Amidar public housing apartment, recounted a life marked by severe hardship, growing up in a distressed family with a mentally ill mother and siblings with Down syndrome. After leaving home, she married a drug addict who made it difficult for her to maintain a normal lifestyle. Tragedy followed tragedy, and one of her children was diagnosed with cancer.
The Struggle for Basic Survival
Represented by attorney Bat-El Ozari, she argued during the insolvency proceedings that the debts were decades-old, dating back some 40 years to her marriage, and that the money was used for the most basic sustenance. "What is my sin? That I wanted to raise four children?" she told the court. "Give me some air to live. I want to wake up in the morning and be free."
She described leaving her home every day at 5:00 AM to work as a cleaner, noting that due to her financial situation she cannot even afford gifts for her grandchildren. Her son testified that she degraded herself "in body and soul" to secure food for her children, which often consisted of nothing more than bread, cheese, and milk. Her employer added: "If there is a modern-day Job, this is the case."
Court Ruling and Rehabilitation
The Insolvency Commissioner, represented by attorney Liat Tuvia, had proposed a repayment plan of 30,600 NIS spread over three years, while the trustee, attorney Shimon Ori, argued for a four-year plan and the forfeiture of her financial assets. However, Judge Gabai Richter surprised the parties by establishing a lower repayment plan and allowing her to keep her savings and severance components.
"Sometimes, even what the paper can bear, the heart cannot bear," Judge Gabai Richter wrote regarding the debtor's circumstances.
The judge noted that she fought tirelessly to raise and educate her children while accumulating debts from basic living necessities, some dating back to the mid-1980s. Under the final ruling, the debtor will pay 21,600 NIS in 36 equal monthly installments of 600 NIS as a condition for her discharge.
