I won a small claims case, but the defendant has not paid. What recourse is available?

Defendant Failed to Pay? Defendants against whom a judgment has been rendered may be slow to comply. Time passes, interest accrues, but the plaintiff’s bank account remains unchanged. Plaintiffs often become lost in bureaucracy, unsure of how to proceed in recovering their funds. This article will also cover the subject of enforcement proceedings.

**This article clarifies:** The timeframe for payment under the law; whether the plaintiff must send a demand for payment; options available to a plaintiff when the defendant fails to pay; and the most reliable method of recovering funds.

I Received a Judgment in My Favor; What Should I Do?

• When the Court Provides Instructions to the Plaintiff within the Judgment: The court may instruct the plaintiff to serve the judgment on the defendant. Payment is then typically due within X days (as specified in the judgment) from the date of service. In such cases, send the defendant a registered letter with proof of delivery, including payment details and bank account information for the compensation. See: Sample Payment Demand Following a Judgment
• When the Court Does Not Provide Instructions to the Plaintiff: Court clerks usually serve the judgment on the defendant. Confirm service with the clerk’s office. Even without explicit court instructions, service is recommended. See: Sample Payment Demand Following a Judgment

Within What Timeframe Must the Defendant Pay?

Generally, the court specifies a payment timeframe in the judgment; usually 30 days (from the judgment date or service date). If no timeframe is specified, payment is due immediately upon judgment. Upon receiving the judgment, the plaintiff should send a payment demand to the defendant with a copy of the judgment.

What If the Defendant Did Not Pay by the Stipulated Deadline?

For non-payment by individuals or corporations, enforcement proceedings can be initiated. Enforcement actions include asset seizure and interest accrual. A monetary judgment enforcement file can be opened only after the judgment’s payment deadline. For example, if the judgment requires payment within 14 days, the enforcement file can be opened 14 days after service. If no deadline is specified, the file can be opened within 30 days of service.

How to Open a Judgment Enforcement File?

The type of enforcement file depends on the judgment:

For Judgments Up to 25,000 NIS: A fast-track enforcement file can be opened. This is a shorter process. According to the Judiciary’s publications (as of January 2023), the average processing time is approximately 8 months. This track, operational since 2009, aims to streamline procedures for successful plaintiffs. The enforcement office handles all actions, with the plaintiff required only to monitor the case. The office sends a warning to the debtor, initiates levies, and takes further collection steps. Guide to the Fast-Track Enforcement Procedure. The following conditions must be met (as of 2023):

• The debtor is not in insolvency proceedings.
• The debtor has not been declared a restricted means debtor (bankrupt).
• The debtor’s total debts in enforcement do not exceed 100,000 NIS.
• The debtor is not a resident of the Palestinian Authority.

For Judgments Exceeding 25,000 NIS: A standard judgment enforcement file can be opened. A request to enforce the judgment must be submitted only after the payment deadline. Information on Opening a Judgment Enforcement File.

The Defendant Has Numerous Enforcement Files. Is My Debt Lost?

Not necessarily. The Insolvency and Economic Rehabilitation Law, 5778-2018, came into effect on September 15, 2019. Under this law, an insolvency petition can be filed if:

• The debtor is not a corporation (company, association, etc.).
• The debtor’s total debts exceed 53,745 NIS but are less than 161,236 NIS (amounts updated annually). For debts below 53,745 NIS, a request can be submitted to the enforcement registrar, citing exceptional reasons.

Otherwise, an insolvency petition can be submitted to the Insolvency Administrator (formerly the Official Receiver), leading to bankruptcy proceedings in court. This has advantages and disadvantages compared to enforcement proceedings.

Note: As of 2023, insolvency proceedings are handled only by 7 enforcement offices:

• Northern District – Nazareth office
• Haifa District – Haifa office
• Central District – Kfar Saba office
• Tel Aviv District – Tel Aviv office
• Jerusalem District – Jerusalem office
• Southern District – Ashkelon and Eilat offices

Information and video explanation of insolvency proceedings in enforcement.