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

The defendant has not paid? Defendants who have received a judgment against them sometimes delay complying with the court order. Time passes, interest accrues, but the plaintiff’s bank account remains unchanged. Plaintiffs often become lost in bureaucratic procedures, unsure how to proceed to recover their funds. This article addresses the issue of enforcement proceedings.

This article clarifies: How long does the defendant legally have to pay? Does the plaintiff need to send a demand? What options does a plaintiff have when the defendant fails to pay? What is the most reliable way to recover the money?

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

• When the court gives instructions to the plaintiff in the judgment: Sometimes, the court directs the plaintiff to serve the judgment on the defendant. In such cases, the defendant must pay within X days as specified in the judgment, commencing from the date of service. A registered letter with proof of delivery should be sent to the defendant, specifying the payment demand and bank account details. See: Example of Payment Demand Following Judgment
• When the court does not give instructions to the plaintiff in the judgment: Generally, the court clerk will serve the judgment on the defendant, and the plaintiff can then verify whether service has been completed. While not explicitly required by the court, sending the judgment is still recommended. See: Example of Payment Demand Following Judgment

How Long Does the Defendant Have to Pay?

The court generally specifies a timeframe for payment in the judgment; usually within 30 days (from the date of judgment or service). If no timeframe is specified, payment is due immediately. Therefore, the plaintiff should send a payment demand with a copy of the judgment upon receiving it.

What if the Defendant Didn’t Pay on Time?

Generally, if an individual or corporation fails to pay an amount specified in a judgment, enforcement proceedings can be initiated. Enforcement proceedings enable recovery of the debt through asset seizure, and the debt accrues significant interest. A case can only be opened for enforcement of a monetary judgment after the deadline stipulated in the judgment has passed. For instance, if the judgment mandates payment within 14 days, a case can be opened in the enforcement office only after 14 days from service of the judgment. If no deadline is specified in the judgment, an enforcement case can be opened within 30 days of serving the judgment on the defendant.

How to Open an Enforcement Case?

The type of enforcement case opened depends on the judgment:

When the debt is up to ₪25,000: A fast-track enforcement case can be opened. This is a shorter procedure than a standard enforcement case. According to the judiciary’s publications (as of January 2023), the average processing time for a fast-track case is approximately 8 months. The enforcement office handles all procedures, and the plaintiff only needs to monitor progress. The office sends a warning to the debtor, initiates asset seizures, and takes other measures to collect the debt. Guide to the Fast-Track Enforcement Procedure. Note that the fast-track procedure is only available if the following conditions are met (updated for 2023):

• The debtor is not undergoing 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.
• The debtor is not a resident of the Palestinian Authority.

When the debt exceeds ₪25,000: A standard enforcement case can be opened. An application for judgment enforcement must be submitted after the payment deadline. Information on Opening an Enforcement Case for a Monetary Judgment.

The Defendant Has Many Enforcement Cases. Is My Debt Lost?

Not necessarily. The Insolvency and Economic Rehabilitation Law, 5778-2018, came into effect on September 15, 2019. Under the law, an insolvency application can be filed if the following conditions are met:

• The debtor (defendant) is not a corporation (company, association, etc.).
• The debtor’s total debts are between ₪53,745 and ₪161,236 (amounts updated annually). If debts are below ₪53,745, an application can be submitted to the enforcement officer citing special reasons justifying the lower amount.

If these conditions are not met, an insolvency application can be filed with the Insolvency Administrator (formerly the Official Receiver). This results in bankruptcy proceedings in court, offering 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 explanatory video on insolvency proceedings in enforcement.