A rare debt reduction was recently recorded at the Tel Aviv Enforcement and Collection Authority. Registrar Dror Adri granted the request of a 60-year-old resident of Sderot to reduce his NIS 1.5 million ($390,000) debt, citing the anxiety and trauma he has suffered since the October 7 Hamas massacre.
The man, who has worked for 25 years as a machine operator at Kibbutz Zikim earning about NIS 8,500 ($2,200) a month, lives alone. His only daughter, with whom he has little contact, lives in Russia. Over the years, 20 debt collection files were opened against him, with his total debt reaching NIS 1,458,026 ($380,000).
In his request for relief, the man said that since the attack he has been plagued by anxiety, stress, fear, fatigue, anger outbursts, and insomnia. He told the court that he “sees terrorists before his eyes” and fears for his future. He is registered at a mental health resilience center, receives state-funded psychiatric care, and takes prescribed medication.
During the war, he chose to remain in Sderot—a city that was evacuated of most residents—in order to keep working and continue paying off his debts. “I’ve been paying for 25 years and see no end,” he said in his filing.
Creditors were asked to state their positions on the proposed reduction of interest and closure of the cases. Nineteen of the 20 creditors did not object, which the registrar interpreted as consent.
Adri ruled that, given the debtor’s fragile mental health and the long history of payments, almost the entire debt should be canceled.
“The debtor should be given a chance to rebuild his life, free of collection files, debts, and restrictions, and to regain the peace of mind he needs for his physical and mental health,” Adri wrote.
Attorney Maor KinderPhoto: Reut Bruchi Ben Haim
The decision noted that in all but one file, the debtor had already paid the principal amounts, court fees, and attorney’s fees, often far exceeding the original sums. In the remaining file, he had paid about 90 percent of the balance.
“The time has come for the debtor to part with his debts and focus his resources on personal and emotional rehabilitation,” the registrar ruled. He praised the creditors for showing “compassion, solidarity, and humanity toward the debtor’s difficult situation.”
As a result, only three files will remain active, with the total amount reduced to NIS 9,000 ($2,400). The debtor will be allowed to pay the remaining balance in six monthly installments of NIS 1,500 ($400) or sooner, at his discretion. Once the payments are complete, all restrictions—including a ban on leaving the country—will be lifted.