State Must Create a Temporary Framework for Insolvency Proce

State Must Create a Temporary Framework for Insolvency Procedures in Light of COVID-19 | Barnea Jaffa Lande & Co.


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The coronavirus pandemic has wreaked extensive economic havoc on the activities of many businesses and households in Israel. According to data from the Commissioner of Insolvency Proceedings, 2020 brought a rise of about 41% in the number of applications to commence insolvency proceedings compared to 2019.
In light of these data, Ministry of Justice officials estimate a “flood” of requests to open insolvency proceedings in 2021.
This assessment, coupled with the fact that, as currently written, the Insolvency and Rehabilitation Law is not designed to respond to so many simultaneous applications, has led the Ministry of Justice to realize there is a need to create an additional framework for the law.

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