Jerusalem Court Orders Indefinite Monthly Payments for 500,000 Shekel Debtor

A Jerusalem Magistrate's Court has issued an unusual ruling requiring a 27-year-old debtor with liabilities totaling approximately 500,000 shekels to pay 2,000 shekels monthly indefinitely. Judge Ofer Yuval expressed skepticism regarding the debtor's declared income and concluded that he is failing to maximize his earning potential within insolvency proceedings.

Before the outbreak of the war, the young man owned a construction contracting company that generated over 60 million shekels in turnover in 2022 with a pre-tax profit of 2.6 million shekels. However, the company suffered a loss of about 10 million shekels the following year. The debtor currently claims to work as a general employee earning 6,000 shekels per month, from which he pays 1,200 shekels in alimony.

While the insolvency trustee and official receiver recommended a monthly payment of 3,500 shekels for five years based on an assumed earning capacity of 12,000 shekels, Judge Yuval opted for an indefinite payment order without a fixed termination date. The judge noted severe doubts regarding the debtor's financial disclosures, vehicle ownership, and claims of living rent-free with a friend, emphasizing that the debtor acted with extreme bad faith.

Legal experts note that while an indefinite payment order resembles an open-ended obligation, the ruling serves as a stern warning to uncooperative debtors and allows for future reassessment after one year depending on the debtor's compliance.