New report: slight decrease in insolvency proceedings for individuals in 2025

The annual report on insolvency proceedings points to a slight decrease in active insolvency proceedings for individuals and corporations, and a slight increase in individual and creditor requests for the opening of proceedings. The report also highlights data on the age of debtors.

GlobesAuthor: Jennifer Silon
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New report: slight decrease in insolvency proceedings for individuals in 2025
Photo: Globes / חדלות פירעון / אילוסטרציה: Shutterstock, Andrii Yalanskyi

In 2025, 1,058 corporate insolvency requests were filed with the court, a decrease of 35% from 2024, when 1,632 such requests were opened. This is according to the 2025 report published today, Sunday, by the Commissioner for Insolvency and Economic Rehabilitation.

Geographically, 567 corporate insolvency requests were filed in the Tel Aviv district, 269 in Haifa, 110 in Be'er Sheva, and 112 in the Jerusalem district. A comparison of active cases shows that in 2025 there were 7,854 active corporate cases, compared to 9,825 in 2024, a decrease of 20%.

Increase in new insolvency requests

In 2025, 22,706 requests for bankruptcy proceedings against individuals were filed, an increase of 10.5% compared to 2024 (20,309 requests). The distribution by district was as follows: 10,204 in Haifa, 6,258 in Tel Aviv, 3,835 in Be'er Sheva, and 2,409 in the Jerusalem district.

Despite the rise in new filings, which indicates economic strain on individuals, there was a slight decrease in the total number of active insolvency proceedings. There were 56,878 active proceedings in 2025, compared to 57,260 in 2024 and 60,658 in 2023, representing a 6% decrease.

The Commissioner's office attributes this to the implementation of a new payment order system, which enables fast and supervised distribution of funds directly to creditors. This system has significantly improved transparency and public trust, with approximately 991 million shekels distributed to creditors in individual cases.

Debtor demographics

The report also provides insights into the age of debtors. In the Tel Aviv district, for example, 1,430 insolvency requests were filed by individuals aged 40–50 in 2025. In the Haifa district, 2,383 requests were filed by those aged 30–40. In Tel Aviv, 3,494 debtors were men, while 1,650 were women.

Significant progress was also noted in legislative efforts, including Amendment No. 9 to the Insolvency Law. This amendment aims to facilitate fair debt arrangements between debtors and creditors, preventing unnecessary entry into formal insolvency proceedings. Furthermore, 2,299 individuals were referred to economic training as part of a policy to promote financial rehabilitation while protecting creditor rights.

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